To record substantial success in trading, one needs to understand the essence of set rules and also endeavor to adhere to them.
These are not mere generic rules, they are rather set of tried-and-tested guidelines that have influenced the decision making of all types of traders, with a variety of trading account sizes all recording success in good numbers.
Each guideline alone is relevant, but when they are applied together, they work hand-in-hand to produce better outcome and the feedback is often positive.
World trading experts who have likewise gone by these often attest to their accuracy in the market. And going by my years of experience in the business of trading forex, I boldly assure that trading with these rules can greatly increase the odds of succeeding in the markets.
Rule 1: Always Adopt a Trading Plan.
This is a written rule that directs a trader’s entry, exit and money management criteria. With conventional technology, it is easy to test a trading idea before risking your real money. It is also called back testing, this practice applies trading ideas to historical data, allows traders to determine if a trading plan is viable, and also shows the expectancy of the plan’s logic.
The moment a plan has been developed and back testing reflects positive results, then and only then can such plan be used in real trading. The important factor is to stick to the plan. Taking trades outside of the trading plan, even if they turn out to be winning trades, is often considered poor trading and may backfire on your trade on unsuspecting or days of poor luck.
Rule 2: Regard Trading as Full Business.
Now let us establish a point once and for all. If you must become successful in forex, you must approach it as a full- or part-time business—not as a hobby or a job. If treated as a hobby, often times people put little or no real commitment to learning the ropes, hence trading becomes rather stressful and frustrating since there is no regular paychecks as would have been expected. But how do you expect maximum results when you only regard it as a hobby.
Trading is a business and incurs expenses, losses, taxes, uncertainty, stress, and risk. Therefore, every trader becomes a small business owner and must do their research and strategize in order to enjoy the market’s best potential.
Rule 3: Maximize Technology to Your Advantage.
Forex trading and technology literally cannot be separated. How do you even trade international currency without technology? Charting platforms allow traders a wide variety of methods for viewing and analyzing the markets.
Back testing an idea on historical data prior to risking any cash can improve a trading account, not to mention stress and frustration. Today smartphones allow us to monitor trades virtually anywhere. Even as little as high-speed internet connections, blogs and newsletter, all of these can greatly increase your trading performance. Nothing can be more rewarding than adopting technology to your advantage and keeping current with available trading updates and trends on digital and social platforms.
Rule 4: Secure Your Trading Capital.
Saving money to fund a trading account can take a long time and requires much effort. It can be even more difficult or impossible if one ends up losing such funds to bad trades. However, it is important to note that protecting your trading capital is not to suggest not having any losing trades. Every trader has lost a trade or two and still do; that is part of the business. Nonetheless, protecting capital entails not undergoing any unnecessary risks and doing everything you can to safeguard your trading business.
Rule 5: Understudy the Market.
Know the Trends. Forex trading can best be likened to continuous education—traders need to remain focused on learning more with every passing day. Provided that market activities are ongoing and the demands and supplies of economy keeps functioning, it is important to stay abreast of updates, news, statistics as all of these will equip one to make better decisions in trading.
And as long as economy exists, learning becomes a lifelong process. Research has it that successful traders keenly follow the facts, like what the different economic reports interpret to mean. Becoming a successful trader entails that one understand how those economic reports affect the market. World politics, events, economies—even the weather—all have an impact on the markets.
The market environment is dynamic. The more traders understand the past and current markets, the better prepared they will be to face the future. We would delve into the second part of this article where I will be unveiling more rules and strategies to unlocking success in trading.
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**About The Author
Dr. Emmanuel Adegbola (popularly known as “The Forex Apostle”)
He is the President/CEO of Hidden Riches, LLC. A Success Coach, A Motivational Speaker, International Best-Selling Author, Facilitator, Founder of TraderMatic, Certified Holistic Marketer, A Gospel Drama Minister, Certified Law of Attraction Wealth Practitioner and above it all; he is a minister of the Gospel. A senior Pastor of RCCG Abundant Grace Embassy.
Dr. Emmanuel is a caring husband and a
loving dad. Married to Ruth Adegbola and they are blessed with Hezekiah and Hephzibah Adegbola. Dr. Emmanuel’s desire is to seeing people living their dreams and living life at their terms. Dr. Emmanuel has helped countless of people globally in business and in their personal life to achieve their dreams and got on better part of life. Now it’s your turn to learn from his pool of knowledge.
