HALAMAN SELANJUTNYA:
Forex Trading - It Is Not Just Buy, Buy, Sell, Sell
Were you ever taught how to manage your money or ever sit in a classroom at school with a teacher talking about the power of compounding interest? For the majority of readers the answer is a resounding no.
Most beginners to Forex trading approach it with two things in mind; how to make money and how to make it fast. Very few attempt, or even know, that to be consistent it is imperative to have a long and short term money management plan and a financial strategy. Thousands of new traders fresh from a Forex trading course realise the expensive way. That is, using as much leverage as possible and trying to make the most money in the shortest time is not the best way to approach Forex trading. It is only when they learn and adopt professional money management skills with the correct investment techniques learnt in their Forex trading course that they reach the pinnacle of trading, a large income and an enviable way of life.
Your Forex trading needs to accommodate your lifestyle and needs to match your personal and financial requirements. Your trading should not be all about the next trade. It should be a sound and effective financial plan. Your venture into Forex trading should be regarded as a new business start-up and you should plan it in a similar fashion. A new business is not born on the promise of one sale or one plan. It is a culmination of many plans with a forecast made for many different scenarios. Different Forex trading strategies are made for different economic climates and pressures. Its success does not rely on one day's sales or profits, neither should your trading.
The way Forex mentors train their students in a credible Forex trading course is to teach them two distinctly different styles of trading nicknamed the "Rent Paying" and "Ferrari" strategies. A rent paying strategy is one that is designed to produce a monthly income to pay the bills pay rent, feed the kids etc. It is a strategy that you know that as long as you follow the rules it will provide you with the income you need to maintain and gradually improve your lifestyle. Having the rent paying strategy working in the background means that you can trade without emotion knowing that you can take care of the most important things in life.
The "Ferrari" strategies are based on making the most of what the market will give you. Designed around momentum and price action, they are controlled with the stop loss and focus on protecting capital and locking in profits. Knowing that in the background of your financial plan the rent paying strategy is providing an income means you can amplify trading potential with the Ferrari strategies.
As a Forex trader becomes more advanced they then look towards other styles of investments and trading, long term retirement, sole income professional trading or perhaps building separate funds to invest in property. Successful trading is therefore not and should not be all about the instant gratification of "buy, buy, sell, sell".