Become A Profitable Forex Trader In 5 Easy Steps
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I always emphasize on this fact that making money through Forex trading is not as hard and complicated as what novice traders think. Almost all of those who start trading Forex, have a mentality and mindset from their past experiences. They “believe” that making money is too hard, because most of them had a hard time making money and covering their expenses. They “believe” they have to work long hours every day to make some money through Forex trading, because they really have been working for several hours to make money, day in day out, no matter what kind of business or job they had. They “believe” it is impossible to become wealthy, because either they never worked toward becoming wealthy, or if they did, they have never been in the right track, and they walked toward it while they believed they could not make it.
What happens when you start a new business with such a mentality? It will not work, and you will not succeed.
“Whether you think you can, or you think you cannot, you are right.”
Read the above sentence very carefully for few times, and think what Henry Ford was trying to say. He doesn’t say anything about what you want to do, or the kind of business you want to start. He just says, if you think you can, then you can. If you think you cannot, then you cannot.
According to Henry Ford, the first and most important obstacle resides in your own head, not outside, no matter what you want to do, either you want to start a business, or learn something new. The outside conditions are almost the same for anybody. If someone can, and someone else cannot, it is because of what they have in their minds, not because of the outside conditions. The conditions are almost the same for both. The difference is that the first person “believes” that he can, and the second person “believes” that he cannot.
Change your mindset, and you will see that everything changes around you:
- I “believe” making money can sometimes be too hard in some kinds of businesses and jobs, but it doesn’t necessarily mean that it is the same in all businesses and jobs. Forex trading is a kind of business that makes money without having to work too hard.
- I “believe” I don’t have to work long hours every day to make money through Forex trading. In this business, I have to be wise, precise and disciplined, not workaholic.
- I “believe” I have everything to become a wealthy forex trader, because those who have become wealthy, didn’t have anything more than me. Same markets, charts, platforms, and… . I just need to plan, set my goals and start moving toward it. A wealthy person is not someone who works too much. It is someone who takes his steps correctly.
Review and revise your mindset now, and read the rest of this article when you done.
What Is the Closest Way to Become a Profitable Forex Trader?
Here is what you have to do to become a profitable forex trader. I don’t know how long does it take you to take all these steps. It can be different from person to person. But what I do know is that if you focus on the below steps, and you don’t waste your time looking for the other things (like Holy Grail), you will reach the last step very soon. But, if you keep on fooling around, and trying different kinds of systems, indicators, robots, and…, you will have to spend several years of your life without getting any positive result. The grass is not greener at the other side.
1. Learn the Basics
If you are too new to forex trading and you don’t know what forex or currency trading is about, and how a trader decides to buy and sell currencies against each other, then read the below articles and watch the videos carefully. I don’t think it will take you more than a few or few days to do it. Even if you are not too new to forex trading, but you have not become profitable yet, I recommend you to read the below articles and watch the videos just once:
- Forex Trading Explained in Simple Words
- What Is Forex and How to Make Money with It?
- Understanding the Currency Pairs in Forex Trading
- Candlestick Signals and Patterns
- Chart Analysis – Part One
- Chart Analysis – Part Two
- Chart Analysis – Part Three
- Support and Resistance Breakout
- Install MetaTrader 4 or MT4 on PC, Mac, iPhone, Smartphones and Tablet PCs
- What Is Metatrader and How It Works?
The above articles and videos teach you the basics. Complete your knowledge by following the below videos and articles:
- Candlestick Trading – The Language of Japanese Candlesticks
- How to Trade Using Doji Candlestick and Bollinger Bands®
- High Wave Candlesticks and Their Reversing Power
- The Importance of the Confirmation Candlestick
- Daily Candlesticks and Bollinger Middle Band®
- What Do the Candlesticks Shadows Tell You?
- How to Trade the Continuation Chart Patterns with Candlesticks and Bollinger Bands
- What Are the Strongest Candlestick Patterns?
- Trending and Sideways Markets
- More About Butterfly and Bat Patterns
- Leverage, Margin, Balance, Equity, Free Margin, Margin Call And Stop Out Level In Forex Trading
- What Is the Proper Risk and Reward Ratio in Forex Trading?
- A Forex Trading Plan
- Money Management in Forex
- How To Become a Successful Forex Trader
- Forex Trading As a Full Time Job
- My Stop Loss Was Triggered! What Next?
- Let’s Learn from the Others’ Mistakes
- The Role of Emotions (Fear and Greed) in Forex Trading
- When Gamblers and Card Players Become Forex Traders
- 4 Signs You Are Taking a Bad Position
2. Learn a Trading System
You have already passed this step (above). Candlestick patterns, Bollinger Bands® and some technical analysis is the trading system we use to analyze the markets and locate the trade setups. This trading system was not invented by us. We just learned and mastered it. Candlesticks have been used for several decades by professional traders and investors on any markets you can imagine, from rice and wheat to gold and oil. And Bollinger Bands that was invented by John Bollinger in the 1980s, is a great complement for candlestick patterns. You have already learned about them by following the above articles and videos. It is up to you if you like to follow a different trading system, but keep in mind that our trading system and the way we use it, is the best and simplest in the long run. Follow the below articles, to complete your trading system and tune up your mind to use it properly:
- Strong Trade Setups Gauge
- Learn to Gauge the Trade Setups
- Forex Trading Couldn’t Be Easier
- How to Choose a Strong Trade Setup
- Candlestick Patterns and Signals that Make Money
- Reversal or Trend Continuation Signals: Which One Is More Preferred?
- When a Butterfly Pattern Supports a Candlestick Pattern
- To Trade or Not to Trade, That Is the Question
- Make Your First $100,000 Trading Forex
- Strong Doji on a Strong Bull Market
- Typical and Atypical Trade Setups
- Candlestick’s Shadow versus Candlestick’s Body
- How Chart and Candlestick Patterns Support Each Other
- When a Trade Setup Confirms Another Trade Setup
- What Have You Learned So Far?
- A Reversal Signal that Is The Beginning of a Continuation
- The Trade Setups that Have to be Ignored
- Our Trading System Checklist
- How Long Is A Strong Trade Setup Valid?
- How To Maximize Your Profit As A Novice Trader
- Features of a Strong Dark Cloud Cover Candlestick Pattern
- Features of a Strong Bearish Engulfing Candlestick Pattern
- Analysis Of Strong Piercing Line And Bullish Engulfing Candlestick Patterns
- Forex Market Trend Strength and Exhaustion and Forex Trend Indicators
- Trading the Monthly Chart Is Lovely
- What Is Your Main Job As a Forex Trader?
- Candlesticks Lower Shadows on an Uptrend
- Monthly Time Frame Is the King
- The Power of the Strong Trade Setups
- Are We Overconfident About Our Trading System?
- A Reversal Signal that Is The Beginning of a Continuation
- Have You Failed Enough to Succeed?
- Wait Sufficiently Trade Efficiently
- Choose The Strongest Trade Setups And Enter The Market On Time
- How To Trade Forex Stress Free
- Forex Trading Is A Different Business
- In Trading Nothing Is More Important Than Experience
- Why Most Traders Like To Go Against The Trend?
- What Is The Best Currency Pair To Trade?
- What If You Give Up On Forex Trading?
- How To Make Your Trading As Simple As Possible
- Traders Who Follow Their Emotions Are Doomed
- Are You Ready For Live Trading?
- The First Day Of Forex Trading
- I Can Manage Your Funds And Accounts
- Hard Work Vs Smart Work
- How To Maximize Your Profit As A Novice Trader
- Are You Aware Of Forex Trading Risks?
- When Quit Your Job As A Forex Trader?
- Is It Worth To Become a Forex Trader?
- How To Lower Forex Trading Risks
- How Many Monitors Do You Need For Forex Trading?
- What Are Forex Trading Risks And How To Limit Them?
- Forex Risk Management And Position Size Calculation
- How Would Albert Einstein Trade Forex?
- What Types of Forex Trading Accounts Fit You?
- When A Too Strong Trade Setup Fails
- Let’s Check The Forex Market Every Day
- Is It Possible To Make Money Through Forex Trading?
- Trading Psychology Basics For Forex Traders
- The Importance of Discipline in Forex Trading
- Why Do You Get Emotional While Trading Forex?
- Consistency Is The Biggest Key To Success In Everything Including Forex Trading
- The Mentality Behind Forex Trading: Do You Trade Forex to Make Money or It Has Another Reason?
- How to Control Your Mind Talk and Transform Negative Thoughts to Positive While Trading Forex
- As a Forex Trader, You Have to Change Your Mind on Your Losses and Mistakes
- How to Deal with Stress and Pressure Moments As a Forex Trader
- Can You Really Become a Millionaire from Forex Trading?
- Ways of Overcoming Your Fear in Forex Trading
- Whom Do You Blame When You Lose Money?
- A Forex Trader Has to Be Patient
- Develop the Right Trading Psychology As a Forex Trader: You Trade the Way You Think, and You Are the Way You Trade
- Self-Sabotage Behaviour In Forex Trading
- How to Control Harmful Emotions While Forex Trading
- Forex Traders Have to Keep Their Ego Out
- Daily Forex News: Should We Care?
- 2 Successful Forex Trading Secrets that You Know But You Ignore
- What If You Don’t Have Money to Open a Reasonable Forex Live Account?
- What Do You Have to Know to Become a Successful Forex Trader?
- As a Forex Trader, at Least You Can Take Home Some Profit Every Month
- A Profitable Forex Trading Strategy for Novice Forex Traders
- “Mind Full” Trading or “Mindful” Trading?
- Forex Trading and the Power of Compound Interest
- Forex Trading Big Drawdowns and the Solutions
- Before You Learn to Win, You Must Learn to Lose
We have also introduced a different approach in using the candlesticks and Bollinger Bands to trade. It is more mechanical and less technical, and you can use it as a second trading system:
- Double Bollinger Bands Strategy To Trade Forex
- How To Trade The Double Bollinger Bands And Our Regular Candlestick Strategy At The Same Time?
- DBB Trading System Rules For Long And Short Trade Setups
- More About Double Bollinger Bands Trading Strategy
- How to Increase Double Bollinger Bands Trading System Success Rate
Another mechanical trading system is the 50-day moving average:
- Follow the Trends with 50-Day Moving Average and Locate the Strong Trade Setups
- Forming 50-Day SMA Trade Setups
Are you done reading the above article? Have you practised enough to learn how to locate and gauge the strong trade setups?
You are all set if the answer is yes. Now you can go to the next step.
3. Demo Trading
Have you learned how your trading system works? If yes, then it is time to open a demo account and start demo trading to MASTER your trading system. Follow the below articles and videos to know what you should do in demo trading exactly. Don’t underestimate this step. It is very important:
- How To Become a Successful Forex Trader
- The Importance of Demo Trading and Your Demo Account
- Do You Already Have a Live Account?
- How Long Do You Have to Demo Trade Before Live Trading?
4. Live Trading
Have you been able to repeat your success with your demo account for 3-6 consecutive months at least, the way it is explained in the above articles?
If I were you, I would not rush to start live trading, and I would keep on demo trading for three more months. You must build your confidence through demo trading. Repeating your success for few consecutive months tells you that…
- You have mastered your system, and you are able to see and take the strong trade setups on time.
- You know how to set the stop loss and target orders, and you do this precisely, strictly and religiously.
- Your losses are small and controlled, and your gains are big, so that when your stop loss is triggered, your loss can be recovered by the next winning trade easily. This can be seen in all positions you take, not just in some of them.
- You don’t feel sad or stressful when your stop loss is triggered. You know that it is just a small loss that can be easily recovered by the next winning trade.
- You are disciplined enough to take the strong trade setups, and ignore the weak ones.
- You enter only when you are 100% confident about the strength and accuracy of the trade setup, and you easily skip the “questionable” and “doubtful” trade setups that don’t look perfect.
If you have really reached this level, you can start live trading. Open a small live account, and treat it exactly like you treated your demo account. Don’t try to make a living through your live account as soon as you start live trading for the first time. First, you have to repeat your success with your live account for few consecutive months, the way you did with your demo account. Build your confidence in live trading, and trade it 100% emotion free, as if you are still trading a demo account.
Do not open a big live account at the beginning. Open a small live account, keep on trading with it, and raise it, no matter if you have hundreds of thousands of dollars in your bank account. For example if you have $100,000 in your savings account, just open a $2000 to $5000 live account. Trade with your live account until you double it, no matter how long does it take you to do that. Then withdraw the initial capital and leave the profit in your account, and keep on trading with your profit the way you have been trading with your initial capital. Don’t think that it doesn’t matter if you lose it, because it is just the profit you have made, not your capital. Never think like this even about a demo account. You can not afford to wipe out even a demo account. When it comes to serious trading there is no difference between a live and a demo account, and a small or big live account. You should have exactly the same discipline for all of them. This helps you maintain and improve your discipline, and keeps you from developing bad trading habits.
Keep on trading with your profit and raise it. Turn it into a huge capital.
It is possible to turn a small account into a reasonable balance that a professional trader needs. But if you risk a big money at the beginning and you lose it, chances are you never become able to recover the loss, both emotionally and technically. Forex trading can make your dreams come true. Don’t turn such an opportunity to a disaster through making the mistakes that can be easily avoided. Let forex trading be the best event in your life, not a nightmare that you don’t dare to remember.
Read the below articles carefully before you open a live account:
- How to Become Multi Millionaire Trading Forex
- Double or Even Triple Your Forex Trading Account Risking 2-5% Only
- Grow Your Small Forex Account Slowly But Surely
- How To Trade Forex Risk Free
If you start your forex trading journey properly, and follow the right track that was showed you above, you can achieve the living you have always been dreaming of. It is very easy if you take it serious and follow the right track carefully and precisely. It is literally impossible, if you follow your emotions and mindset, and try to invent new ways. If you are serious to become a professional and profitable trader as soon as possible, I showed you the closest way above. It is up to you if you follow that way, or waste your time trying to find better or closer ways.
Read this if you like to know how it feels to be a professional full time trader: How Does It Feel to Be a Professional Full Time Forex Trader?
Good luck 🙂