Ladies and gentlemen, are you a forex trader finding it difficult to become successful even with a trade? If yes then do not panic, in this article I will take you through the step by step guide on how to build an winning forex trading strategy from scratch.
At the end of this article, you’ll be able to confidently enter trades like a professional and cash out your earnings for 80% of trades you take, how? Stay through until the end to find out.
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Mistakes Beginner Traders Make Trading Forex
Just like any other beginner trader out there, I was like you, in fact when I discovered forex trading, there wasn’t that much information about it online as we see these days, thanks to the internet.
I started trading without a plan, no targets and I didn’t even care much about the amount I was risking per trade. My only focus was on the profit target. Do you know the results? I barely won a single trade even though about 70% trades I took back then hit take profit (tp).
This happened because of my ignorance when it came to risk management, I got liquidated from the slightest pullback below my entry level. I blew my account on several occasions even though the trades later returned to the direction I speculated. That hurt right? I do not wish that on you.
Another major reason I failed in my first 6 months of trading forex was the strategy. I would hop on any strategy at all that I hear of, moving from one strategy to the other. I used all the self acclaimed best indicators you can think of, but it all didn’t work out.
So one day, I was ready to quit forex trading, I withdrew my capital for my broker, bought pizza and a cup of coffee for the night. That was it and in my mind, trading was over until I chanced on this video on YouTube take constantly talked about how a trader should stick to one strategy
After watching that video, my reading career changed for the better. And in this article I will show you how you can build a winning forex trading strategy just like I did. I’ll give you a step by step guide so pay much attention to this.
Before we move on to the most important part of this article, I’ll like to introduce to you the broker that I use, Exness. Now, I know you might have seen or heard about Exness and be wondering why this is the best broker in the forex trading industry.
Well, Exness is a very beginner friendly broker, it gives you that luxury to deposit and withdraw in so many transactional markets based on your current region or country. The most important thing that makes me love Exness is their leverage limit.
As a beginner you often struggle to get huge capital to start off with but guess what? Exness give a leverage all the way to 1: unlimited. This means you can trade with as low as $10. Sounds great right? Sign up with my Exness link for free here: Exness.org
Step 1: Stick To One Forex Trading Strategy
It’s nothing to hide, forex trading can change your financial life for the better but if you do not trade right, you’ll easily lose all your capital in seconds. Sticking to just one trading strategy and mastering it will make you profitable.
Most traders decide on one strategy, win one trade and lose 3 trades and then they decide to move on the next strategy. This is absolutely wrong, just stick to one strategy even if you are losing.
And yes, you won’t win all trades, so have it in mind that you will lose trades ( you just have to lose the right way) so when that happens, you don’t need to lose hope in your strategy. If you trade supply and demand zones, stick to that. If you trade smart money concepts then stick to it, it’s that simple,
Step 2: You Don’t Have To Trade Every Single Day (Forex Trading Strategy)
Once you have finally settled on one strategy, it is not an obligation to trade every single day. And it’s not every trade you take during the day. Personally, I trade once in a day. I enter one trade, hit my take profit and then stay away from the chart for the rest of the day.
Now, I trade when at my own time and on my own terms. I do not allow the market control me and I do not get arrogant because I won one trade. I just stick to my strick rules, being discipline is all you need, set rules and stick to them.
Step 3: Do Not Force Trades
When your confluences are not being shown on the trading chart, do not trade. Don’t force it because it will only end in losing. Once you have a perfect strategy that you understand, just wait for your personal indicators to show.
What what I mean by confluence is that for instance, before your trades become valid, there must be a break of structure or maybe the market must be either bullish or bearish. So once there is no break of structure, no clear trend or price is ranging, just move away from the chart.
I always tell my students that a trade missed is way better than a trade lost. If you don’t see your set up, don’t force a trade.
Step4: Proper Risk Management
Trading is not gambling, it’s a business and must be treated as such. Apply proper risk management should be the first thing anyone at all should consider learning in forex trading. If you can’t learn this then you’re not ready.
For every trade you take, you must know how much you are risking, it’s not always about how much you are going to make. You must trade with a lot size that’s going to risk just 1% of your capital or 2% at most.
If you have a $100 trading account, go into trades risking anywhere around $1-2 per trade. Do not be greedy, if you are, you’ll lose your money quickly.
With all these considered, having a trading plan, identifying and sticking to one trading strategy and apply proper risk management, you are gradually going to build a winning trading strategy. This is how I did it, and if I can do it then you can too.
It’s not rocket science, you do not have to master everything in trading before you become profitable. And also bare in mind that the bigger your capital or trading account, the higher your chances of earning huge in trades.
So you do not expect to buy a Lamborghini in one month of trading with a $100 account. Do not compare yourself to a trader with $10000 account. Just stay focused, grow your account bit by bit and you’ll surely get to that stage.
It’s not about how big you win in a single trade. It’s about how consistent you are with winning. And if you want to win consistently, you must build yourself a winning strategy. I hope this was helpful.
If you are new to forex trading, make sure you enroll in our free text course that will prepare you for you to become a professional trader, here’s a link to that: Forex for beginners