Best Forex Trading Mentors

Becoming a successful Forex trader is a process. Most would-be traders don’t become profitable on their first try, or even the second or third. Those that have the determination and persistence to go through the process learn a lot of valuable lessons along the way.   Here are three things you should know if you want to become a consistently profitable Forex trader.

There are a lot of different ways to trade Forex, from scalping the lower time frames to trading on the daily and weekly time frames.  But in my experience, it is the traders that have the patience and stamina to trade the higher time frames that do the best.  Lower time frames are less reliable, ironically take more time in front of the computer and end up being more stressful than higher time frames.

When I started, I was drawn to the lower time frames.  I thought I could learn faster and make more money in a shorter period of time.  I thought I could keep my stop losses super tight and use higher lot sizes to rake in massive money in minutes.  The opposite was true.  However, when I switched to higher time frames, success started happening more regularly.  So, the first secret is to start trading on time frames from 1 hour to daily.  (My favorite is the 4 hour time frame).

New traders want to make more money on each trade by using big lot sizes.   This leads to using an arbitrary number for their stops instead of letting the market chose the stop location.   As a result, they get stopped out a lot and lower their winning percentage.

Controlling your risk with proper lot size and stop loss is a better way to trade.   Adjust your lot size to manage risk after placing your stop loss where the market indicates.   This way, you can determine a specific percentage of your account to risk on each trade, which will be the same regardless of whether your stop loss is 20 pips or 200 pips.   So, the next secret is to use your lot size to manage your risk.

Forex trading is a serious business, not a get-rich-quick scheme. From the first two recommendations you can see that successful traders move away from the fast time frames and unrealistic stop losses searching for quick profits. Treating Forex like gambling leads to losing a lot of money and having your sporadic wins reward bad behavior that eventually destroys your trading account.

A better way is to have patience and treat your trading like a business.   In the long run, creating a trading plan for slow, steady profits and developing the trading skills to trading the plan consistently is what creates a successful trader.   In the end, treating your Forex trading like a serious business is what allows you to create serious profits.

To find out more tips and tricks of effective traders, join Forex Insider Pips. I’ll share with you more of what I’ve learned on my journey to become a successful trader, as well as unique trading tools.  This training is free, and can make the difference between making real money as a trader, and only dreaming about it.