subject: The 10 Commandments of a Home Forex Business [print this page] The 10 Commandments of a Home Forex Business
"Forex is trading is so easy! You too can make 9,000 in one week within a month of starting to trade, you do not need any experience to be a highly successful trader."
Have you ever seen those all similar sorts of claims? I have and I wished so much for them to be true! In my quest for this "hidden treasure" I have spent thousands searching for the illusive keys that would how me how to achieve success in running a home forex business.
Yes, you can make 9,000 (in any currency) in one week, and you can do that if you have a large bank or are extremely lucky
And it is true, you do not need any prior experience to start trading, but you do need experience in order to trade successfully.
In this article would like to share a summary of some of the key lessons that I have learnt. They are written for the prospective traders so that they may learn from my mistakes and enjoy the benefits that forex trading can bring. I call these the Ten Commandments of Successful Forex Trading.
1. Thou shalt start small and grow!
When looking at all the marketing literature that is available, it is no surprise that so many people decide to enter forex trading. Sadly within a short length of time many leave with their tail between their legs. The vast majority of people who have failed have forgotten the first commandment of Successful Forex Trading. ALL traders lose, the question is how much they lose and also how much they learnt from their losses.
2. Thou shalt remember why you are trading
This commandment may seem to be too obvious to even mention, but people do forget. You are forex trading for one reason and one reason alone. To make money! Of course, the driving force, the goal, the dream behind wanting to make money is important. The dream or goal will never be met unless the trader remembers maximise his gains and minimise his losses
3. Thou shalt only trade with money that you can afford to lose
Forex trading is a leverage product allowing you to win and to lose quickly! Adopt a strategy that will ensure that the funds you make available will not affect your life if you lose it. This is not meant to be pessimistic. When starting trade with what you can afford to lose. As your bank grows, return your funds that you initially deposited back to your own bank, then you will only be trading with trading gains.
4. Thou shalt trade within a defined plan
Some wise person once said "Nobody plans to fail, but many people fail to plan". This is true of running a Home Forex Business. Anyone who enters into a business would not be able to obtain funding from a bank without a business plan. And yet many people feel happy to jump into forex trading with a minimum of planning or trading strategy.
5. Thou shalt not chase gains after having loses
I picture a dog chasing its tail whenever I think of this commandment. There is something about accepting a losing trade gracefully as long as one has performed the diligence to ascertain the correctness of the trade. The successful trader realises that trades will come to him as long as he has the correct plan and is executing it.
One of the signs that a trader does not fully understand the forex market is when he sells a winning position in order to support a losing one. This is not good practise!
6. Thou shalt not lie to oneself about ones loses
Nowadays many are "conditioned" into wanting to find someone to blame for everything that goes wrong. You will make mistakes, that is 100% guaranteed. You must learn to face the music and accept that what happened to the trade.
7. Thou shalt look for reasons NOT to trade
This one may sound strange as it is contrary to what many people are taught. However, if a trader learns to look for those indicators that will prevent a loss, the remaining trades (and they do appear time and time again) will ensure he remains highly profitable.
8. Thou shalt maximise ones profits
This commandment manifests itself in a forex home business by increasing your winnings and minimising your gains. The trading strategy that you adopt should ensure that you can successfully replicate your winning trades and minimise (note not eliminate, because even the best traders lose trades). This will include the correct use of Stop losses.
9. Thou shalt learn before, after and during a trade
In high level terms, the delivery of a project is based on three high level stages. First define the objectives and how you plan to achieve them. Secondly manage the execution of the plan as closely as possible in order to achieve the objective. And thirdly on completion, conduct a lessons learnt exercise, review what went well, what went badly and examine the benefits.It is essential to also regularly review your trades.
10. Thou shalt respect that market
Any trader who believes that he has conquered the market, fully understands a market is living an illusion. Yes, it is possible to have an understanding just as sailors of old had an understanding of the seas and weather sufficiently to help them get to their goal. Unfortunately not all do
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