5 Success Secret Recipes Of Top Forex Traders

A Top forex trader keeps the intricate details of his trading methodology a closely guarded secret as anyone would do a priceless treasure. Do not expect to find a top trader hanging out in forex trading forums online, in the rare case that you do, you’ll quickly realize how much they value and protect their time.

A not so rare scenario is you find one who loves talking about trading and teaching others exactly how to achieve financial independence through currency trading. I’ve had the privilege of meeting some really nice trading mentors along my journey through forex trading who’ve taught me a lot on how to trade profitably even though we only met on the internet.

Beginners almost always pick up some $XXX revolutionary trading system that’s buzzed about in the forums and chat rooms and then try running with it so to say without even taking the time to understand the trading strategy behind the working of the
system.

They go in search of the nonexistent ‘holy grail’ one size fits all automated trading software or robot that works on all currencies in all markets that make them a million dollar on a $100 investment in the next 6 months.

Now that’s unrealistic and very bad for the health of your trading business, really if the software was really as good as it was advertised, the guy would probably just let you have it for free because he’ll  be too rich to care or simply wouldn’t even make it available to the public to start with.

Ask yourself, what would you do if you came across some forex trading system that delivered consistent wins 100% of the time? Will you sell it, give it away for free or simply keep quiet about it while you make a killing? I’d like to see your comments on this one guys, really what would you do?

The most important skill you can develop as a trader is risk management, no matter how good your trading strategies are you’d lose if you didn’t know how to properly manage your risks trading, I’ve seen less than average trading systems deliver consistent results following strict money management countless times.

Now let us dive right into the success secrets of top traders so that you can adopt it to your trading style helping you increase and maintain consistent profits through currency trading.

Secret Ingredient #1

Risk per Trade

In any business whatsoever you'll definitely need capital to do business. It's no surprise that forex trading bears a high amount of risk but it is equally promises high returns as well, but this will be  dependent on the amount you have in your trading forex trading account.

I know some traders who keep their risks per trade as low as 1%. It’s extremely important to protect your trading funds, remember without capital you cannot trade, learn to live to fight another day. Running your risk per trade on the high end to as high as 10 -15% only points to one thing, you’ll burn your trading account sooner or later but it’s definitely going to happen, that’s why most of the trading forex robots out there eventually end up blowing your account.

I personally think that the highest you should risk per trade is 5% and no more, period. This could work on small funds like risk capital (money you can afford to lose) but you should gradually reduce this as your trading account grows. If your trading capital is low, you must factor in a reasonable length of time where you’re compounding your trading funds and not taking from it.

Secret Ingredient #2

Only One Trade at a Time

Ok maybe only as you’re starting out, you can add more currency pairs to your basket but for now you need to focus all your trading efforts on one currency pair until you get a hang of the whole trading thing where it’s become somewhat effortless and natural to trade.

Having more than one losing trade at a time only makes trading much more stressful than it needs to be. Losing at anything not just the forex carries so many negative emotions of which anger, fear and regret are major parts of.

Concentrating on managing one losing trade will be much easier than two, three or four losing trades at anytime you’ll only be overwhelmed, you’ll know this if you’ve been trading for any amount of time.

Secret Ingredient #3

Risk vs. Reward

If you can’t evaluate the risk to reward ratio of any trade before opening that trading position you’ll simply be trading blindly hoping for the best and probably expecting the worst, oh there’s a word for that, it’s called ‘Gambling’.

Secret Ingredient #4

Simple But Effective Forex Trading Strategies

In their desperate search to make money fast and easy, newbies trend to believe that every new trading strategy they encounter is the one that will make them millionaires, so they immediately ditch whatever they were doing to follow the next new system. 

They never learn to apply any system profitably or even sort out the good systems from the bad ones, Inevitably they end up with huge losses. Don’t do it!

Crappy forex trading software and systems the internet are a dime a dozen. With the myriad of price lagging technical analysis only, forex trading strategies out there only the right trading education can save both yourself and your money.

Many at times I teach Newbie traders a simple but effective trendline price action trading strategy only to see them over complicate it with technical indicators resulting in total analysis paralysis because they just thought it was too simple, don’t let thoughts like that stray you from the path of trading success.
In my experience simple is always best complicated doesn’t always mean a higher ROI. 

The idea here is to find or build a simple yet very profitable forex trading system, pass it through rigorous tests and then follow it!
Jot down a written plan clearly setting out the signals to watch for as per your trading methodology the whole nine yards, stop loss, initial profit target, and breakeven price target etcetera and keep it in front of you at all times when you’re trading.

Always remember that the secret is not in the strategy itself but in how you implement it. Stay focused and don’t base your trading decisions on greed or fear; never let fear of losses or dreams of wealth diverge you from your trading methodology.

Secret Ingredient #5

Keeping a Cool Head

Forex trading is a stressful business and the traders who do best are those who are able to have total control over their emotions while trading. It’s ok to feel fear when all seems to go wrong with your trading efforts, just don’t be afraid.

Here’s a quote from the legendary trader Paul Tudor Jones;

“Trading is very competitive and you have to be able to handle getting your butt kicked. No matter how you cut it, there are enormous emotional ups and downs involved.”

The secret of top forex traders is they know this and so they always prepare for it so they aren’t surprised with trading indiscipline causing them to make irrational trading decisions.

Keeping a cool head makes for stress free trading which in turn makes trading so much fun which is why we all signed up to this career isn’t it?

Am hoping you found this article helpful in some way be sure to drop your comments and questions below I be glad to help.

Cheers…

Discover My Amazing Breakthrough Formula That Helps Siphon Loads of Cash To My Bank Account From The Forex Market Name: Email: The 5-Part eCourse "Forex Earning While You Learning"

click here for your free autoresponder