abdulla1 Posted June 11, 2011 Share Posted June 11, 2011 Online, Day trading has exploded across America. Some investors have been very successful and boast of huge gains made in incredibly short periods of time. However, there are many others who experience devastating losses because they have not tapped into the 6 critical factors necessary for successful Futures and FOREX Trading. Success in any profession can be broken down into a number of critical factors. Trading is no different. A successful trading strategy incorporates the following 6 factors. 1. Determination of An Edge: Trading Futures is a zero sum game. There must be an identifiable edge over the other market participants. 2. Disciplined Execution:There is no point in identifying an edge if there is no discipline to follow thru. Create a plan, stick with it, then determine if the plan is successful. If it is not, change the plan. The important thing is disciplined execution. 3. Money Management: If the risk per trade is too aggressive, then there is the risk of blowing an account. If trades are too conservative, then the opportunity to optimize returns is missed. It is critical to establish the maximum expected draw down of any system and set money management rules accordingly. 4. Create a Trading Plan: A trading plan will determine what will be done in any given situation during the trade day. A plan helps keep one focused on execution and not distractions. 5. Responsibility: Responsibility lies with the trader. Gains, losses, success, or failure is determined by the skill, determination and discipline of the trader. 6. Commitment: There must be commitment to placing every trade according to plan, even through the losing periods where every trade seems to end up a loser. Trading seems to throw up extremes of good times and bad times. One must not be over confident during the good times, and one must not give up in the bad times. There also must be adequate time every day to compare actual performances against the trading plan. Quote Link to comment Share on other sites More sharing options...
ethilihop Posted January 29, 2012 Share Posted January 29, 2012 I completely agree with all the points on how to be a successful forex trader.. its very important that a trader dont allow his thoughts to get mixed with others, what i do is to listen to some daily forex videos and see if it confirms with my views... if then ill have more confidence in my trades... and one u are in that zone u can play the market accordingly and make lot of profits, u know exactly that the market will move from point a to point b and between this time is the best time to trade. It is also important they you dont tell people how much u make from the forex market.. coz they will not even be able to understand your language. Quote Link to comment Share on other sites More sharing options...
ayushsrk Posted February 4, 2012 Share Posted February 4, 2012 i think that money management is the major factor for the increment of the forex.i mean success of the forex.but we should not also forget trading plan without this it can be really hard. Quote Link to comment Share on other sites More sharing options...
arhabib Posted April 20, 2013 Share Posted April 20, 2013 Yes every topics of the six are most importent in forex trading. I think money mangaement is most important for a student. Quote Link to comment Share on other sites More sharing options...
euro Posted October 4, 2013 Share Posted October 4, 2013 Those are good points. Some to remember is to trade long term to absorbs more risks and to reduce risks and long term trading is more profitable and more sure than short term scalping. Short term works but its very high risks as well. You can make money but then again the risks is just as high in scalping. Therefore I try to do long term trading or at least one day so that the risk is lower and profit is for sure. Also, use stop loss and take profit when it peaks and don't wait too long or else it will dip. Quote Link to comment Share on other sites More sharing options...
euro Posted October 15, 2013 Share Posted October 15, 2013 I say you need to keep up with news daily as it changes your currency performance so much that you will be shock to find out if you haven't follow it. Also, have it email to your email or follow it on facebook. Make sure you use low capital and low leverage to prevent high loss and high risk and mc losses or total wipe out. Make sure you use stop loss in long term trade as you will need it cause the market dip really low overnight sometimes. Make sure you use the best brokers as possible cause there are scammy ones out there. Quote Link to comment Share on other sites More sharing options...
Bagus Posted October 26, 2013 Share Posted October 26, 2013 news included in fundamental analysis and fundamental analysis to understand how these traders should really learn to develop themselves well in this business because we know that this news analysis will not be easy to do as well in I say you need to keep up with news daily as it changes your currency performance so much that you will be shock to find out if you haven't follow it. Also, have it email to your email or follow it on facebook. Make sure you use low capital and low leverage to prevent high loss and high risk and mc losses or total wipe out. Make sure you use stop loss in long term trade as you will need it cause the market dip really low overnight sometimes. Make sure you use the best brokers as possible cause there are scammy ones out there. Quote Link to comment Share on other sites More sharing options...
surya77 Posted February 8, 2014 Share Posted February 8, 2014 for build a one perfect aircraft plane we need to plan it from level 0 to level 100. so in forex trading also same you must to build you slef trading strategy for become profit builder on you investment. Quote Link to comment Share on other sites More sharing options...
myregister Posted January 7, 2015 Share Posted January 7, 2015 I agree with most of your list especially the 3rd one, that is the most suitable for me, everytime i trade i must know the risk that i want to take, if that is blur i won't go there. Also calculated risk is better because it is already calculated and we can recover easily later rather than forcing ourselves and hoping for luck. Quote Link to comment Share on other sites More sharing options...
Alick Bannerman Posted July 9, 2020 Share Posted July 9, 2020 Frankly speaking, it’s important not to over-think when it comes to figuring out critical factors. We need to just do the basics right and that very much will be it. And that to me is around having discipline, patience, seriousness and willingness to do hard yards. Thankfully, I am able to do that just right, as it’s simpler with eInvestment. One of the finest investment fund platform which is fully licensed and backed by a team of finest brains having over 200+ years of experience combined. Quote Link to comment Share on other sites More sharing options...
gds221 Posted September 9, 2020 Share Posted September 9, 2020 I work with a broker Amarkets, and my main goal was to gain experience. As for me, this is a really important option for a trader. Quote Link to comment Share on other sites More sharing options...
Vaabum Posted December 11, 2021 Share Posted December 11, 2021 In fact, there can be many more factors, because often a trader's success is generally in small things. Quote Link to comment Share on other sites More sharing options...
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