The most important thing in Forex trading is to stay focused on the main thing that you want to achieve. I do my best to stay focused on my main goal, which is to become a successful Forex trader and to help others do the same thing.
There are many things that can distract you in Forex, and one of them is a blown account.
Having a bad Forex account can have many bad things happen to your life. The worst thing is that your mistakes will start to affect your family, your reputation, and even your income. So, how can you avoid blowing your Forex account?
The 3 R’s of Forex Trading
After getting my first serious interest in Forex, I did a lot of research on the best strategies and the right way to make money from trading Forex. In the book The Forex Investment Guidebook, the author Mark Tiedeman, writes: “The best way to create a reliable, profitable Forex trading experience is to do nothing.”
I like that idea.
At first, it might sound kind of crazy to just do nothing. But, I have found that it is the most efficient way to make money from Forex trading.
The 3 steps to follow to make money from trading Forex You can make money from trading Forex with very little effort. But, I have found that there are 3 things that you have to do that is the most important thing in the book.
- Find the Right System That Works for You Don’t expect anything to go perfectly.
- Learn to always stay focused on the task in hand.
- Recover Account Value
First, you need to make sure that you get back your account balance. This is a common mistake many beginners make.
After they lose the Forex trading account, they use an “automatic reloading” service, or a third party service that they buy, to get the money back for them.
While this is a common way to get the money back, and it will probably work, there are two disadvantages to it.
The first one is that the amount of money that they get back will be much smaller than the original trading account balance.
The second one is that you will not get the original quote from the client.
As I mentioned, another important thing that you need to do is to stay focused on your goal and not get distracted by things like a blown Forex account.
When you first start trading, you should stay clear of any account that you feel the urge to go on as fast as you can. I’ve even seen Forex traders that have blown an account and they still couldn’t do anything about it because they were so angry.
It would have been better for them if they had not blown their account in the first place.
To learn more on Forex trading and how does it work, then check out this quick beginners guide clicking here.
Don’t go for the quick buck
One of the biggest mistakes that I see all the time in Forex trading is that some traders just want to make money without much thought. This is also the same mistake that I see in poker.
One of the biggest mistakes that I see people make in poker is that they want to go for the quick win when the chips are down. If you do this, you will just end up losing all your money and that will definitely have a negative impact on your life.
This is also one of the biggest mistakes that I see in the Forex market. A lot of people get greedy and they want to keep going for the quick wins when the chips are down. They just think that they can get more money out of the market, and that’s wrong.
To find out how you can make Forex trading easy, and why I don’t believe it is actually that difficult. You will want to read through this article explaining what you need to do today clicking here.
Don’t be greedy
One of the main things that causes an account to blow is being greedy.
You get a bad price, trade all the time, and then lose most of your profits. The best way to avoid a blown Forex account is to not trade all the time.
You need to trade only when the price moves in your favour. This can be difficult, as many Forex traders focus on trading as much as they can.
If you do this, you will be tempted to trade with a lot of leverage, and you won’t want to go out of the market. Don’t get a big account, a big account is another major cause of a blown Forex account.
You get a big account by sending a lot of money to a broker. This will increase your profits, and it will also allow you to keep a lot of your earnings.
Don’t trade with leverage
A lot of traders take advantage of their leverage and don’t think about the fact that they have some of the highest leverage of any Forex trader.
They are often trading on margin, which means they have borrowed money from their broker to trade on their account. This is a bad move because the broker then has the power to destroy the profitability of your account and make you pay a high interest rate on this money.
What is a bad use of leverage?
For instance, you have $10,000 of your money in the market. You have just made a profit, so now you can withdraw your money from your account to put into a more promising account.
But you have a good opportunity to invest another $10,000 on a Forex exchange, so you quickly take out your money from the profitable account.
Protect yourself from a volatile market
All Forex traders need to be aware of the importance of diversification and should take care to never take more risk than they can handle. If you are a new trader, you probably do not have the skills to manage a high amount of risk.
And you should not expect that your trading skills will be developed enough to handle a large number of different kinds of risks.
You should start by making very small trades, such as $100 to $500. This is probably the biggest amount of risk that you should take. If you are more advanced, then you should try to stay in small ranges.
For example, your range will be $500 to $8000. Stay calm, and your patience will make you an expert in Forex. When you trade a volatile market, it is very easy to get anxious, and then you will lose your focus. But do not panic.
Stay focused on your goal
It’s easy to get distracted.
There are so many trading opportunities that you can take advantage of, so it’s not easy to remain focused on the main thing that you want to achieve.
A key thing to keep in mind when you want to become a successful trader is to know what your main goal is. It’s going to be easy to lose sight of that goal, especially when you receive a lot of offers to trade with.
The first thing you should do is have a clear definition of what your goal is. What do you want to achieve?
For example, if you want to become a successful trader, you should know what you want to do and why you want to do it.
This is why I always recommend that you have a clear goal for the day when you first go to bed. If you have a clear goal for the day, you’re less likely to make mistakes.
When you have a blown Forex account, you could be more aggressive and take more risks to try to fix it.
However, if you try to fix the issue too soon, you could be creating more problems for yourself. If you think about it, you are giving the other team a huge advantage by fixing a problem that you have created for yourself.
This can be very costly, because the other team will be able to know that you are unable to trade without having an account problem.
How do you make sure you are more successful in Forex trading? Leave your comments below and share this post if you liked it.