The best traders who make money in forex trading sharpen their skills through practice and discipline. In addition, they carry out self-analysis to find out what actually drive their trades and learn how to keep their greed and panic out of the equation.

Actually, nobody will ever reveal the exact strategies and secrets he uses for making money in forex trading, but I will expose some of the secrets you can use to succeed.

These are the skills any forex trader who want to make money trading forex should practice.

1. Describe Trading Style and Objectives

It is important for you to have an idea of your destination and how you will reach there, even before you embark on a journey. As a result, having clear goals in mind is very important, and make sure the trading method you are using will accomplish these objectives if you want to be a successful forex trader.

With every trading style, there is always risk profile associated with it and it necessitates a certain approach and mind-set to trade successfully. For instance, you may have to think about day trading, if it is impossible for you to go to bed with an open position in the market.

Moreover, you may be more of a position trader in a situation where you have funds you believe will gain from the positive reception of a trade for some months. Just make sure that your traits fit the trading style you carry out. A personality divergence will cause stress and some losses.

2. The Broker and Forex Trading Platform

If you want to be successful in this trade, then it is of great importance for you to choose a broker of good reputation. In addition, spending ample time comparing different brokers will be very handy. It is also important for you to know the policy of each broker and the way they make a market.

Furthermore, make sure the trading platform of your broker is appropriate enough for your intended analysis. A good broker that has a poor trading platform or an excellent platform with a bad broker can constitute a problem. Make sure you balance the two and get the best of them.

3. Use a Consistent Methodology

As a trader, you ought to have some ideas of how you will make decision in order to execute your trades before you enter any market. Hence, you must know the type of information needed to make the right decision when you are entering or exiting a trade.

In order to determine the best time to carry out a trade, quite a number of people prefer looking at the underlying basics of the economy and a chart. However, other traders make use of the technical analysis alone.

Make sure are consistent, irrespective of the methodology you use, and make sure that methodology is adaptive. Your system should follow the changing dynamics of a market.

4. Establish Your Entry and Exit Points

A lot of forex traders are confused by contradictory information that happens when looking at charts in diverse timeframes. But it is noteworthy that what shows up as a buying opportunity on a weekly chart could actually show up as a sell signal when it comes to an intraday chart.

Consequently, make sure you synchronize both your daily chart and time entry, if you are taking your basic trading direction from a weekly chart. In other words, if the weekly chart is providing you with a buy signal, make sure you wait until the daily chart too confirms a buy signal. Sync your timing.

5. Work out Your Expectancy

The expectancy is simply the formula you use to establish how dependable and consistent your system is. You should go back in time to measure all your winning trades and losing trades, and find out how profitable your winning trades were versus the amount that your losing trades lost. Consider your last ten trades.

However, revert to your chart where your system would have shown that you should enter and exit a trade, if you have not made real trades yet. Find out if you would have actually made a profit or a loss. Write down these results.

Sum up all your winning trades and divide what you get by the number of winning trades you made.

Visit https://forexlifestyl..com for the part 2 and concluding part of this article and more tips on how to trade forex for money