Forex Traders Secrets:
How to Become a Forex Trader

What are the best forex traders secrets?

In my early days, I scoured the internet hunting for profitable strategies to make millions. To this day, I still haven’t found the ‘magic’ trading system.

It doesn’t matter. 

The secret to becoming a consistently profitable forex trader is sound risk and money managementThat’s how to become a forex trader. The world’s most profitable forex traders can teach their best trading system, but it’s pointless if the student can’t manage risk 

The student will fail.  

Indeed, the importance of money management is often ignored. New forex traders spend months looking for the ‘perfect’ trading system, but neglect risk managementIf they take the time to learn risk management instead, they would be learn how to become a forex trader and become consistently profitable.  

Forex traders secrets: money management  

Money management is the same as risk management 

Forex traders often quote ‘how much capital they are risking’ in their accounts. Joe might be risking 33% of his account, for example. But that ‘total risk’ might be spread across many trades. 3% of the risk might be on one breakout trade and 3% might be in a risk reversal trade…and so on. 

Forex traders use different techniques when it comes to managing money.  

But only elite traders take risk seriously!

Inexperienced forex traders often go into a trade intending to manage their risk. But, when they press the buy trigger, their risk management goes out the door. Their focus quickly shifts to how much money they ‘will’ make in the trade.

If you’re doing this, stop it.     

It’s crucial to always think about risk when you’re trading. That how to become a forex trader…

Markets are unpredictable and anything can happen.

Nothing is guaranteed. 

I was having a conversion with a friend the other day. The topic of trading came up. She had a $20k position at risk and was up 20% on margin. My friend was up $2k.

She said that she should have risked more money.

I said, ‘How would you feel if you lost 20%? Would you want to risk more capital? 

She went quiet.  

Trading is a business.

That’s one of the best forex traders secrets. Treat your forex trading account like a business. No one has unlimited funds to stay in business. One bad decision could blow up your account and business. With proper management, you can keeps the doors open and learn how to grow your forex trading account.   

You need to think like a casino 

The famous saying is, ‘The house always wins’!  

Casinos know that sometimes they will lose. But they know the odds are in their favour of winning over the long term.

Casinos know they will have winning and losing streaks. Yet, the casino always wins…

You need to think like a casino. That how to become a forex trader…

You don’t need to win all the time.

Milliondollar traders win 50% of the time at best. 

That means they lose 50% of the time.

The best forex traders secret…

You must become comfortable with losing money to become an elite trader.   

That’s no joke.

I’m comfortable with losing trades.

I wasn’t in the past.

Losses are part of the game…

There might a better trade opportunity that requires your funds as well.

If there’s a better opportunity, I’ll sell a loser to buy it. 

That’s called ‘opportunity cost‘. 

Most retail traders don’t think about the ‘opportunity cost’…and they never will. You always need to think what can go wrong and are there any better trades out there. This is one of the best forex traders secrets to remember.

Professional forex traders understand that forex trading is a game.

You can’t win them all.   

Trade the best trades!

Forex traders secrets: Position sizing  

When you adopt a risk-focused mindset, your trading will go to the next level.

You will always be thinking about the position size. Most beginner traders don’t think about their position sizes in forex 

Why does position size matter? 

Focusing on position size allows you to adjust your trade risk. Keeping your position size small gives you flexibility. Based on the trading conditions, such as the market volatility, forex traders can adjust their risk, according to the position size. If the market is more volatile for example, you would want to lower your position size to manage risk. 

If you aren’t a consistently profitable forex trader yet, you should always keep your position sizes small anyway.

That how to become a forex trader…

Trading smaller position sizes can pay off. 

Remember, small gains add up!

Forex Traders Secrets: Focus on each trade in insolation

Just because you have been on a winning streak doesn’t necessarily mean you should increase your position size either. The winning streak might have been luck, or the current market conditions suited your trading style. If the market conditions change overnight and you increase your position size, you could lose more than just your shirt.  

I made that exact mistake when I first started trading forex…

I assumed two weeks of consistent wins was sufficient proof that my strategy worked.

Unfortunately, when I increased my position size and the market conditions changed, my strategy no longer worked and lost thousands.  

A smart trader should slowly increase their position size.

Prove to yourself you can do it before increasing your position size.

Are fixed percentages flawed?  

When it comes to position sizing, is the fixed percentage method good? This method uses equal percentages for each trade. For example, Joe wishes to risk 2% of his total account on each trade.

You don’t need to choose 2% to risk. That number’s just made up. You can pick any number. But the smaller the better.

The fixed percentage method is useful to keep new traders and unprofitable traders focused on each trade. 

You won’t get carried away by false confidence with big wins, and risk more if you’re in a losing trade

Remember, trading is a business and you must manage cash flow. 

If you run out of money, you’re out of business. That’s why small position sizing is useful for unprofitable forex traders.

You have your whole life to trade big.  

Your ‘Start With Forex’ takeaway: Forex Traders Secrets — How to Become a Forex Trader

You must learn to become the world’s greatest risk manager!  

That’s the real secret in how to become a forex trader.

It’s easy after a few big wins or losses to lose focus. This happens all the time. If you stop managing risk, your performance will go quickly downhill.

Your ‘Start With Forex’ tip: Trading with a demo account is good…but you won’t feel your emotions. Use the demo account to learn how to use the trading platform. But there’s nothing like trading with real money to learn what you don’t know!

Trading real money is a big part of learning how to manage risk. 

Here’s the catch…

You don’t have to trade a big account. You can start with $100 or something…or an amount that you are prepared to lose. Go into forex trading knowing that you will probably lose that money as well. That’s right.  At the end of the day, trading with real money, you will experience the ups and downs (emotions) of forex trading and learn how to manage risk.

Remember, you must become the world’s greatest risk manager to be a pro forex trader!

In the next lesson, you will learn more about how to make profit trading forex. If you’re readyclick here.  

To your trading success, 
Start With Forex  

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Quiz

Lesson 10: Forex Traders Secrets: How to Become a Forex Trader

Only successful traders take______ seriously:

Correct! Wrong!

All are reasons why position size matters, save for one

Correct! Wrong!

_____can make or break you as a trader:

Correct! Wrong!

The method that uses equal percentages of risk for each trade, regardless of the size stop:

Correct! Wrong!

Purposes of using a demo account except one:

Correct! Wrong!