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To become a successful forex trader, one must: 1. Build a clear trading strategy and rules that define signals, entry/exit points, risk management, and maximum drawdowns. 2. Build confidence through backtesting the strategy to evaluate its performance and longest losing streaks. 3. Implement the necessary structure when trading live, such as a trading plan, to avoid emotional decisions and overtrading.

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Andrew I.L Idi
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19 views12 pages

Question

To become a successful forex trader, one must: 1. Build a clear trading strategy and rules that define signals, entry/exit points, risk management, and maximum drawdowns. 2. Build confidence through backtesting the strategy to evaluate its performance and longest losing streaks. 3. Implement the necessary structure when trading live, such as a trading plan, to avoid emotional decisions and overtrading.

Uploaded by

Andrew I.L Idi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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How do I become a successful forex trader?

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Étienne Crête · Follow


Forex Trader & Founder at DesireToTRADE.com (Trading Psychology & Methodology) · 7y

RelatedHow do I learn how to trade forex successfully. I have been trading for 3
years and am still not successful?
Hi,

Trading is very simple but far from being easy. I realized that because I've been in your
situation. It took me around 3 years to make consistent profits (and not lose what I made).

The great thing is that you're still trading after 3 years. The average trader gives up after 4
months (National Futures Association).

If you are not profitable, it means you haven't put in place one of the things mentioned below...

Here are the parts to master:

1. Build a strategy and set your rules

It took me a long time to put together a trading plan but it is crucial. It should answer the
following questions:

Why do I want to trade and/or make money trading?


:
What is my signal?

Where do I enter?

Where will I cut my loss?

Where will I take profit? (it's better to have several T/P in my opinion)

What amount will I risk? (should be a fixed % or $ number)

What maximum drawdown will I allow myself to get weekly/monthly? (the point at which you'll
stop trading)

What timeframe do I trade?

When do I trade?

2. Build up your confidence

There's only one way to build up your confidence about yourself and your strategy.

It is practice.

If you want to save time, I recommend you backtest. Either use a backtesting software or any
trading platform and track the trades
Openyou would have taken with your strategy.
in App

When you backtest, make an effort to find the losers. This means it's better to take more losing
trades that you would in real life. Don't take the trades that do not correspond to your strategy
though.

When you've done your backtesting, evaluate whether you have a positive return. Also see what
was your longest losing streak. That way you'll be less depressed if it ever happen again (it will
at some point).

3. Get the structure you need to trade live

Most people never do step 1 and 2. Among those who do step 1 and 2, a lot of people screw up
when they get to live trading. The main problem is that they do not put what they need in place
to trade live.

A lot of people, including my best clients, see themselves as free when they trade. They feel too
restricted by structure but it is essential.

Here's what you need:


:

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