5 Proven Steps of Becoming a Successful Trader

12/16/2015 9:00 am EST

Focus: FOREX

Ejiofor Francis, of RideForex.com, lays out five simple steps to help those traders still struggling for survival in the realm of forex get—and stay—on the right path.

Why am I not successful over these years of trading? What could have made me not to have succeeded like others? Are they using a method I know nothing about?

Sometimes, we feel bad for not being productive. It’s quite natural for it to happen but the fact still remains…we must not give up.

If you are among those traders still struggling for survival in the forex world, my advice for you is to read further.

You have all it takes to become who you want to be; but the problem might just be…you identifying them and providing the exact solution to solve them.

Here in this article, you will be informed on how to get on the right lane to journey successfully in the FX world.  If you are really prepared to become a successful trader, then this article is for you.

Step 1: The Learning Curve

The learning curve is simply demonstrating what you have to do to increase your trading skills. But the right question to ask yourself is, “What do I do to boost my knowledge in trading forex?’’

Get the Right Education—Education has always been the right method to distribute information.

A lot of traders are in trouble today because they easily get deceived with the wrong information.

You have to be very careful with what you listen to and who you give your ‘ear time’ to. 

The right information is a powerful guild for profitable traders. They don’t joke with it.

Practicing What You’ve Learnt—One of the major setbacks trader’s face today is because they don’t really take their practice very seriously.

Practice has always been known to have a fruitful ending in any aspect of life which is ‘’perfection.’’

Looking at the path of success, the majority of those crossing it have in one way or the other practiced vehemently.

Step 2: Having the Right Thought

You cannot go far in trading if you still wallow with the wrong thought. You might be a little bit confused on this.

What are these wrong thoughts?

  • Oh No! I can’t. It’s waste of time—Who told you it’s a waste of time, forex trading is not a time wasting business, but a business that yields very fat in a short period of time, if you are ready for it.
  • I think I can gamble through it, it worked for a friend I think it will work me—This perception of yours is very wrong and can run your account flat. In a blink of an eye.

It is very wrong to think of FX trading this way. So if you really want to be a successful trader, don’t allow your thought process to run towards this direction.

  • I think those successful traders are naturally gifted. Hello! Success is not a gift from birth but can be earned by our effort. Stop those thoughts that make you feel inferior to others.

Success is earned by traders who are willing to work for it. It’s quite unfortunate that majority of us easily get attracted to some traders, who announce how they make a huge profit out of the market at a very little time with simple method.

Don’t get me wrong, some might be lucky, but most of them might just want to get your attention. Nothing good comes easy, work it out yourself.

NEXT PAGE: Forex Trading Is Not Something to Take Lightly

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Step 3: Identify and Work on Your Weakness

Identifying your weakness is a great step to achieve success from the market. And one of those things done by profitable traders was identifying their weakness and working immensely on it.

Don’t think they were perfect from the very beginning they were once faced with challenges. They never wallow in self-pity; all they did was to seek for workable solution.

How do I identify them?

This is a personal test you have to carry out on your own. You have to personally identify the challenges you face whenever you are trading.

Common problems faced are:

  • Fear
  • Emotion
  • Greed
  • Excitement

These are commonly known as the four demons affecting traders. After listing out your challenges, you have to find out the best way of solving them.

Step 4: Avoid the Revenge Mindset

To become a successful trader, you must do away with the revenge mindset. Such perceptions towards the market only indicate how insecure you manage your money.

This simply explains the major difference between a profitable trader and a non-profitable trader.

Let us take for instance, there were two traders, X and Y. One of them is a newbie trader X while the other is a pro trader Y.

Their account was funded with the same amount. The aim of the test was to factor out the major difference between both of them (pros and newbie).

The market was challenging that very day.

However, the practical analysis ended by X losing almost all the equity and Y doubling his own account.

During the competition, it was observed that X was losing and yet he kept on holding his position.

Why? Because he wants to revenge the market but ended up losing almost all he had.

This is a proven way to say that trader X lacks money management and the ability to define risks.

For Y, it was also observed that the trader knows how to manage his account and also how to define his risk.

Inexperienced traders do this mistake. They trade with the mindset of recovering all they have lost while trading.

You must bring to your awareness that losses in trading are one thing you’ll be facing, even the profitable traders do face it. “Revenge never works.”

Step 5: Develop Your Own Plan (Discipline)

Most profitable traders don’t joke with their plan, which is why you have to develop your own trading strategy.

What is a plan? It is a powerful tool, used by traders to clearly define and achieve their aim and objectives.

Developing your own plan requires a very careful approach because it covers a lot. Don’t be a trader who depends on others.

Sometimes, the T-plan of trader A does not work for trader B. We are all different and such uniqueness requires us to plan on our own.

Our aim so far in this article is to warm you up with tips that can help you become a successful trader. Don’t just develop it, discipline yourself to apply them…that’s the only way your plan can bear fruit.

By Ejiofor Francis, Contributor, RideForex.com

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