A few years ago I had the opportunity to instruct and assist a Forex trader who was trying to become a full time Forex trader and trade for a living. He asked me to coach him one on one and he needed me to be his mentor. I used many of my Forex secret trading techniques and after only a few months of training he was already profitable and trading full time. We are still working together on strategy development and market research.
During the time I trained and instructed this trader I was able to detect some of the main errors he was committing that kept him for years to make consistent profits. In this article I would like to share with you the main faults this good but unprofitable trader was making and how we improved them.
Having surreal goals, big expectations lead to big disappointments: I am a believer that without goals you will not get anywhere in life. On the other hand, I believe that setting up surreal goals and having really big expectations from one trading idea normally heads to big failures and losses.
Successful Forex traders are able to make unbelievable profits because they concentrate on the profits and they do not get married to any trading idea. They realize that if a trading idea is not working, it is better to cut your losses and find another one.
Risking money you cannot afford to lose: Another huge mistake this Forex trader was making was that he was investing with his family's living money. Things like your mortgage payment, your daughter college tuition money or your car insurance money are funds you should never trade, even if you are Pro forex trader. In the Spot Market there is a very thin line between great trading opportunities and chaos and for many people they just happen to be in the market at the wrong time.
For this reason I always ask my traders and protégé es this question " What would happen if you lost all of your trading capital ?" . Most people respond " I would be very upset " or " I would go bankrupt ". Well trading under these circumstances is a mistake; remember of only trade with money you can afford to lose.
Putting all the eggs in the same basket: Pro Forex traders NEVER get married to a trading idea. The reality is that the market is always changing and a lot of times your super effective trading system gets unprofitable just because the markets have converted. As a result, it is highly suggested to never put all your money into one trading system. Always have a fall back plan and never trade more than trade 20% of your total net worth.
Your net worth is your personal economic power. For example, if you happen to have $ 250, 000 in the bank, $ 350, 000 on Real Estates, and $ 20, 000 into a hedge fund your total net worth is $ 620, 000. Then 20% of $ 620, 000 is $ 124, 000 so a person with this net worth should never trade more than $ 124, 000. Money management and capital management is exceedingly important.
Trading based on what you hear around: I have perpetually said it, you cannot make money by just listening to other individuals. You need to learn your trading style, do your homework, and master the basics of FX trading; no one can do this for you.
I hope you enjoyed this article. I will be posting more and more exclusive Forex secret trading tips very soon.
Best wishes,
Jay Molina
Pro FX Trader & Educator
Jay Molina is an advanced Forex trader that helps other investors around the world to learn about the Forex market and its rewards and risks.
To understand more about forex secret trading, visit the link: http://www.myfxventure.com