Winning in forex is not that complicated: the rules to follow are so simple that they sometimes seem simplistic and many traders do not follow them. Moreover, the psychological aspect (hunches, compulsive trading, placing an order without a strategy, etc.) is certainly THE point that forex traders etoro vs xtb should work on but which is too often neglected in favor of technique.
1. Choose a trading strategy
The problem of losing forex traders often comes from the fact that they do not have a strategy or that they do not follow the roadmap that they have made for themselves. This can lead, for example, to shifting stops, placing orders against the trend on a whim, placing biased orders depending on the state of mind at the time, etc. Stick to the plan, no matter what.
2) Have clear and realistic goals
Why do you have a forex account? To improve your performance, to make a living from trading, to build up additional income? Your strategy and available capital should match your goals like make money on forex. It is perfectly unrealistic to want to live trading with €1,000, and yet some people struggle to achieve this before burning their account in a few trades…
3) Choose a good broker
Your broker (broker) must be approved by the AMF. You can then compare the spreads in order to choose the most competitive one. Don’t rely too much on online comparators, which are often biased… The platform must suit you, be easy to access and user-friendly: it is advisable to open several demo accounts before committing.
4) Accept not to win every time
It is possible to win on forex by having less than 50% of winning trades… Only if when you open a position the expectation of gain is systematically greater than the potential loss. Be careful to only open positions when the win/loss ratio is in your favorite.
5) Focus on the method and not on the result
Following the method and avoiding trading with your emotions is the most important thing. Regardless of the outcome of the trade, a successful trade is one placed in accordance with your strategy and a bad trade (even if it ended in profit) is one placed on impulse. Visit Traders Union for more accurate trips to trade like pro. Satisfaction should come from following the trading plan, not from the outcome of an order.
6) Keep a trading journal
Nothing beats progress than a trading journal in which you can note your past orders, the outcome of the trade, whether you followed the strategy or not… The main goal is to be able to analyze losing trades in order to understand why they didn’t make any money. It is also a way to reaffirm your commitment to following a particular strategy.
7) Do not give in to the temptation of overtrading
Opening several positions at the same time is tempting: we think that in this way it will be possible to earn more… The problem is that currency pairs and commodities are all more or less correlated, so it’s a safe bet that if you lose on one side, you will also lose on the other Not keeping a sufficient margin is the best way to melt your capital in no time.
