10 Trading Tips of Forex Millionaires
Are you aware that only 5-20% of financial market traders are actually successful? Meaning, this small percentage is actually out-profiting their losses. I only want to focus on the 1% of the 5% for a minute. These are people who trade and are successful over the long haul. Not every millionaire in the market has a college degree or knew anything about investments or finance before they started trading but they realized the potential and almost forced themselves to learn. These are the traders who don’t let greed or ego get in the way of their trades. What is it that makes these millionaire trader different?
I’ve put together a list of the top 10 trading rules I’ve found that these top traders practice religiously.
Aside from the usual tips like being patient, disciplined, starting off small and not letting emotions affect your trades, these are traits that I have personally taken note of from Forex Millionaires as well as rich and wealthy people from around the world. One of the more important tips for any trader is to really take a break every once in awhile. This is a skill, like riding a bike, you’ll get back on after awhile and still know how to trade the markets. With that said, don’t focus on getting your hands in every market, select a few and completely master them. It’s more profitable to master a few than to be an amateur in many.
1. Know Why You Trade
There are dozens of reasons why people trade forex. Some trade to control their financial fate. Some like the fast paced environment. Others like the “hunt” or thrill for a big kill. Whatever your reason, you’ll trade better and enjoy it more if you understand why you do it. The what, where, when and how are all irrelevant when your “why” is strong enough.
2. Don’t Bet Your Car or House
Trading can be very risky, so don’t fund your account by committing money which, if lost, could throw you into bankruptcy or debt. Trust me, it’s not pretty. Instead, fund your account with money to be used only for investing. No one can afford to lose money, but consider each investment as though it is already lost. Also, don’t place all your equity in one position.
Many millionaire traders recommend keeping three times as much money in your margin account as you need for any one position. Basically, they find that you shouldn’t commit any more than 1/3rd of your account balance on any one trade. Of course, these are traders who makes tens of thousands of dollars on a single trade with it only being a single digit percentage of their accounts, but find a percentage that suits your risk and trade profile and refrain from deviating away from it.