Top Currency Traders Secrets
The top currency traders tend to be little known, avoiding the limelight, stacking up their wealth behind the scenes. They usually keep their trading systems to themselves. Many people assume this is because they are afraid of competition, but often this is not the case at all. More likely, they are afraid that exposing their system will hex it in some way so that it doesn’t work any more. Superstition? Perhaps, but since no trading system will work equally well for everybody who tries it, it is often true that a system revealed will be criticized. This could lead to the trader losing confidence and therefore to failure.
So do not expect any top currency traders to be online revealing all the details of their systems to the world. What you can find out, however, are the pre requisites: the secrets of what you need if you hope to become a successful currency trader yourself.
In our view there are just three essentials that you must have if you want to join the millionaire ranks of the top currency traders any time soon … or just become a financially free professional trader making enough money for you and your family to live on from month to month.
1. Investment Capital
It takes money to make money, and this is just as true in the world of speculative currency trading as in any other form of investment. Sure, forex trading carries high risk that potentially brings high returns, but these will always be relative to the amount you have in your account.
Risk management is vital, and the big traders will keep their risk down to 1% per trade or even less. It is vital to protect the funds that you have. You will never get rich if you keep losing your bank.
If you think this through, you will realize that you are not going to make a million dollars from a $100 micro forex trading account – at least, not this year. If your startup funds are low, you must factor in a long period where you are simply growing your capital and not withdrawing any of it. This means it must be money that you will not need for any other purpose. It also means you will need a lot of patience.
2. A Clear Trading Strategy
There are many successful forex trading systems and the secret here is to look for one that is simple but effective. Test it thoroughly and then stick with it. The top currency traders do not hop from one system to another, so don’t you do that either. Develop a written plan that clearly sets out the signals to watch for, the stop loss, profit aim, etc, and keep that in front of you at all times while you are trading.
All systems will go through bad patches but if your strategy has a sound basis, it should pick up again. If you have tested your system well, you should have the confidence to know that even if it goes a whole month without making you any money, it will turn around and perform for you again soon.
3. A Cool Head
Forex trading is a stressful business and the people who do best are those who are able to keep their emotions out of their trading as far as possible. This doesn’t mean that you never feel stressed or anxious or elated: it means that you do not let those feelings direct your trading.
Here’s a quote from legendary trader Paul Tudor Jones: “Trading is very competitive and you have to be able to handle getting your butt kicked. No matter how you cut it, there are enormous emotional ups and downs involved.” The big secret of top currency traders is that they know this and allow for it.
