Automation is in the world of Currency Forex Online Trading truly the lazy man’s way of trading the forex. And this is a smart way to do this. You may ask why? Simply because it deletes the strongest enemy to overcome in the process, which is by the way: You!
But be careful, after 6 years of FX Online Trading, I’ve probably been through all the pitfalls that this industry has to offer, which was sometimes a very hard lesson to learn. But what if you don’t want to make all these experiences yourself? What is it that makes the big difference between the five percent of people (or fewer) who make great profits and the ninety-five percent who just can’t seem to make a go of it no matter how many times they try?
To be successful in a swimming pool of sharks, you must digest and own some key concepts. So here we go:
How to get ahead of the other 95% in Currency Forex Online Trading
The 8 basic rules
1. Never trade with money you can not afford to loose. The last thing you want to do is worry and panic while you are in the middle of a trade. Hence don’t do it!
2. At no time, you should be invested with more than 3% of your trading account balance. Your stop loss order needs to handle this condition at all times.
3. Always start with a demo account for at least one month if you are testing something new. Most Automated FX Trading Software Systems require a minimum of 3-6 month testing time to get familiar with the software and the trading “habits” of it.
4. After a minimum of one month of profitable trading one should switch to real or live trading. It ought to be a minimum of 20 trade transacations, with greater amounts being best. Don’t forget that these are the minimum requirements.
5. After finding a profitable FX Trading Software, always take portions of the newly earned capital out of the account and let the rest accumulate. My suggestion would be to take out half of what you’ve gained every month.
6. Maintain a log of trades. Be sure to jot down or enter your trade details into an excel data file. Most MT4 brokers provide you with a log file anyways.
7. Review and critique the trades made with the system. Understanding how to use your automated fx trading software is essential to your success. Often enough you will notice similarities/patterns in the trading and this will give you a deeper understanding of the systems weaknesses and strengths. This is also a key aspect for manual trading by the way.
8. Stick to the rules 1-7. Believe me, this is the hardest part of all. I have seen too many traders losing all their money only because they were not able to follow these simple basic rules.
This is all that is needed in terms of the fundamentals to begin. If you manage to follow these rules, you will do far better than most other traders struggling in the currency market. Get your homework done, stick to the basics and you are on your way to the top 5% who are making serious money with fx online trading.
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