To be a successful forex trader you need long term strategies for success.
If you want to be successful long term with forex you need to learn a few things. You always need to protect leverage or you’ll be wiped out. Many traders make errors that are very simple and it hurts them in the long term, changing a very profitable forex business into a game a craps at the casino.
1. Understand Standard Deviation of the Price – Most traders don’t understand this. Standard deviation comes from the math of statistics and it’s basically the difference between data points. The reason this is important is because the data that comes in isn’t going to be linear or contain all numerical posts. That means there could be differences of 0.5 in between the data.
Basically to put that into the real world you’re going to be using software like Forex Killer to handle trades and you’re going to give it variables on when to buy and sell. You need to understand that if the standard deviation is 0.5, than if you put in a number like 100.7, it’s never going to get hit. 100.5 and 101.0 will be hit. When we’re trading forex we’re talking about very little fine changes to the hundredths of a number. 0.5 is a significant amount of change if you have thousands of dollars in the game. You have to be aware of this or you’re going to give up much of your gains by simply the gap between data points.
2. Earn Slowly – Many traders get greedy or get on a high of making money. They try to make as much as they can as fast as they can. This is trouble. Rapid gains of currency happen, but they’re not common. If it’s not common, you can ride the wave, but eventually it’s going to stop and you’re going to burn. Take it slow. Don’t aim to get rich on one trade. Aim to get rich by slowly making money over time.
This are very good strategies for long term forex gains. These work best if you’re using software like Forex Killer which puts your forex business on auto-pilot. It’s nice to view the graphs and have a piece of software calculate trends and allow you to work the standard deviation to your advantage.