Automation is in the world of Currency Forex Online Trading truly the lazy man’s way of trading the forex. And this is a smart way to do this. Are you wondering why that is the case? Because it does a great job in eliminating one of the greatest snakes in the grass, You!
Six years of FX Online Trading later, I have gone through almost all the pitfalls, traps and drawbacks this industry provides, so be careful. What can you do if you are not interested in having all these experiences on your own? What is it that makes the big difference between the five percent of people (or fewer) who make great profits and the ninety-five percent who just can’t seem to make a go of it no matter how many times they try?
To make a long story short, there are some key factors which are absolutely crucial to your success if you want to survive in the sea of sharks (Brokers, Institutional Traders, Banks, Advertisers and most important: You. So here they are:
How to get ahead of the other 95% in Currency Forex Online Trading
The eight basic guidelines you have to follow to become a successful Currency Forex Online Trading Pro
1. Don’t ever trade using funds you can’t risk to lose. The last thing you want to do is worry and panic while you are in the middle of a trade. So don’t do it!
2. At any time, you should not invest more than 3% of the remaining balance of your trading account. Your stop loss order needs to handle this condition at all times.
3. Always begin with a trial or demo account for one month if you are trying out something new. Most Automated FX Trading Software Systems require a minimum of 3-6 month testing time to get familiar with the software and the trading “habits” of it.
4. Only switch to real or live trading after a minimum of one month profitable trading. It should be at least 20 trades, the more, the better. Don’t forget, the requirements are minimum ones.
5. A person should separate a part of the newly earned capital and take it out of the account, after gaining some profits and accumulate the rest of the money. It is recommended that you take 50% of each months earnings.
6. Keep a trade log. Always write down, or put your trading data in an excel file. Many MT4 brokers already offer their clients these trade log files.
7. Study the trade transactions of the trading software. Understanding how to use your automated fx trading software is essential to your success. Often enough you will notice similarities/patterns in the trading and this will give you a deeper understanding of the systems weaknesses and strengths. This is also a key aspect for manual trading by the way.
8. Stick to the rules 1-7. Take my word for it, this is the most difficult aspect. I am tired of watching traders lose their entire savings simply due to the fact that they could not stick to some basic guidelines.
That is all you need to take care of to get started. If you simply pay attention to these simple rules you will do far better than many others who struggle with FX Online Trading. Get your homework done, stick to the basics and you are on your way to the top 5% who are making serious money with fx online trading.
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