Success Formula for a Trader: (Trading System That works)
You must have same question what is the success formula for a trader to make consistent money. Is there anyone who is making money out of this? So answer to your question is here
- If you define a system for your trading & work for this system then no one can stop you from making money $$$$.
- Now the more important than anything is the SYSTEM. Have you defined your system are you following your system? Have you confidence that your system can run on AutoPilot mode?
- I will go through the steps what I mean by a system in Trading.
- As a Trader it’s your own business & I need to think and take care of every aspect of this.
- Read the below content carefully you will understand what I mean by SYSTEM. And how you can become consistent profitable trader?
What is mean by trading? It’s very well defined by Mark Douglas in 3 easy steps as described below.
- Define the Edge
- Define the trading setup where the probability of going in expected direction is more.
- Use any trading strategy, simple is better & define the high probability trading setup
- Define the Risk
- Define the amount of Risk you are going to take for this Trade.
- If this trade goes against you what is your plan. How much amount/pips you planned you can bear with.
- Execute the Trade
- Execute the Trade is very important aspect of trading.
- In theory everyone can become master in trading. But when it comes to actual trading this is not the fact.
- As actual trading, execution involves handling emotions & human psychology.
- Even TV channel expert advisers are not very good trader. So don’t worry its an ongoing process but very important aspect of trading.
Be willing to do the things others won’t do… so you can have the things tomorrow… other won’t have.
Make discipline a major force in your life.
Socrates: The undisciplined life is an insane life.
Make it OK to fail.Anything that’s worth doing is worth doing badly… until you get it right.
You don’t have to be great to get started, but you have to get started to be great.
Now to be successful on this path you have to follow
- Please, Please, Please never ever define what happens NEXT. Be comfortable for uncertainty.
- Until you are consistently profitable work on increasing position size rather than taking more risks.
- Be very selective even if you take daily 1 or 2 trades that is good enough for your predefined target.
- Plan every trade before you press execute button & please, please trade only what is planned.
- If you are in this for Money you must learn to be patient
- If you are in it for RUSH then Las Vegas is cheaper & more fun
- Working on you. Don’t allow your emotions to control you we are emotions, discipline your emotions otherwise emotions will use you.
- Important Characteristics of a successful trader
- For my friends who come to me has the same question I gave following formula for being successful in forex trading. If you are ready to change & allow yourself to follow. You have to make a declaration you are standing for it. It’s not an easy to change, if you are serious you will go out and make it happens.
|1||Plan the Trade and Trade the Plan||Before I put my order I know why I am putting & what plan I have if it goes as per me and against me|
|2||Per Trade Risk 2%||20$ per trade for 1000$ account|
|3||Consecutive -ve trades||Not more than 5 consecutive trades going wrong. If this is the case then its Alarming. Stop trading n Relax|
|4||Trading only on Setup||Planned trading only on candlestick and chart pattern break out & pattern formation|
|5||R:R ratio||1:2 & 1:3 risk to reward ratio. And only traded on that|
|6||Coming out of trade strategy||if it does not cross over break-even in 3 consecutive candles then better to exit.|
|7||Choosing currency pairs||EURUSD,USDJPY,USDCHF,AUDUSD,NZDUSD,USDJPY,EURJPY,GBPJPY mainly trading on main currencies|
|8||Trading the news||No. Not recommended to trade the news wait for market to settle down after news and then trade.|
|9||Time Frame||only only and only traded on D1 and H4 charts rarely on H1 chart|
|10||Trading Timings||Most of the trade will start during session start time 6.30am, 1.30pm, 6.30pm & 11.30pm|
|11||Inherent trend & Reverse Order||Trade must have to follow the inherent trading & strategy for Reverse trading|
|12||Self-Analysis – Weekly Basis||Drawdown should me minimum, %win should be more than 50%,|
|13||Fine Tune and changing plan||Fine tuning to monthly requirement (should I stop trading or increase Risk )|
|14||Planning||Weekly planning for next week pairs, probable trading setups|
|15||Commitment||Following the System Rules. Whatever may happen I am following my rules|
- All those who have decided OR Want to change their living, Want to be financially free using Currency/Forex Trading Concept (Forex Trading as a Business).
- This is the best place in the world to start making Money.
- Your own choice of Yes and No will make your Destiny!! Take time and understand What you really want from the life? And what all you are missing from your life.
if you follow this TradingSystem then no one can stop you from making money. Thank You for being here with us — Best Wishes for your trading career.