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How to Become a Confident Trader?

12:30 PM Oct 4, 2019
10740
For beginners

Uncertainty is one of the most common reasons for failure in the Forex. Novice traders are afraid to lose their investments so they have doubts about every decision. This causes them to skip trades which could make them rich.

Today will give you a few tips which will help you to become a successful trader. You should expect fast results but if you are consistent and persistent you will achieve success.

What Will You Need?

The secret of trader confidence is consistency and long practice. The more time you spend trading, the less doubt you will have about your decisions.

However, you should understand that no matter how long you’ve been trading, you can’t gain confidence if you keep losing. That’s why we will talk about a few key aspects which will help you to achieve your goals:

  • Practice on a demo account
  • Strong trading basics
  • Competent planning
  • Gradual training, one technique at a time
  • Trading on daily charts
  • Learning from your mistakes

Practice on a Demo Account

Before risking real money, you need to understand how the currency market works. Start by trading on a demo account. You should try out every possible situation on the market, learn to determine profitable trades, begin to understand when it is worth opening and closing positions. Only when you start feeling self-confident on a demo server you should proceed to live account.

Strong Trading Basics

Learn to feel the market. If you want to make confident trading decisions, then you need to understand the price movement. Start with the basics: learn to identify the main trend, find support and resistance levels. Study and remember how price behaves in a given situation. The more often you trade, the sooner you will learn to determine the future direction of the market on an intuitive level. And at this moment you will start to feel real confidence.

Competent Planning

There are three things which you will never become a successful trader without:

  1. Trading strategy
  2. Trading plan
  3. Risk management

If you are a novice trader and you still do not have a clear plan of action, then you should start with these “three pillars” of trading.

Gradual Training, One Technique at a Time

If you grab onto everything at once, then you will learn nothing. Train one technique at a time. You should move further only when you know all the nuances of particular price action and practiced it many times.

Having mastered a specific technique, you will easily notice the right situations on the market and determine profitable trades simply by having a quick glance on the charts. You will start trading at the subconscious level, which will make you more confident.

Trading on Daily Charts

For beginners, Forex trading might seem overwhelming. In this hectic, you can quickly get lost and lose your entire investment. If you want to delve into the trade, then start with daily charts. Here you can more clearly assess the market situation and make an informed trading decision.

Due to the high volatility in many markets, the price often fluctuates up and down, creating “false signals” or the so-called “ trading noise”. Inexperienced traders take such signals at face value and lose their investment.

On the daily chart, you will learn to recognize price action signals more accurately and do it at a more measured pace.

Learning From Your Mistakes

Each trader has his own methods, trading styles, and charts. But no one knows in advance what works best for him. To do this, you have to learn by trial and error. That’s when you should start using a trading diary.

Carefully record your every action and at the end of the day/week/month return to your trading history and analyze it. If you have lost money, try to understand what went wrong in order to avoid such mistakes in the future.

And vice versa, if the transaction turned out to be incredibly profitable, try to remember its signs in order to find and use them in your future trading.

I hope that these tips will help you on your path to becoming a confident trader. Using them, try not to confuse simple confidence with excessive confidence. Overconfidence leads to reckless decisions. If you want to linger in the foreign exchange market, go to your goal baby steps, and then you will succeed.

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terms Stop Loss news trading economical calendar major news release currency pair currency rate national currency trading journal trades profit/loss emotions news release positions size Expert Advisors platform trading robot cryptocurrency volatility day trading position size lot account types cent accounts Mini account ECN Copytrade ECN accounts swap-free minimum deposit order execution liquidity providers demo accounts real account low-risk trading EUR/USD economic calendar majors cross-currencies exotic currencies base currency quote currency quotes bid ask Brexit United Kingdom European Union GBP Euro GDP WTO price levels moving average 4-hour chart 1-hour chart bulls bears false breakout cross-currency USD price action pin bar trading inside bar trading hands off breakeven stop loss 50% stop loss pin bar high-frequency trading position trading swings breakout strategy trading style Entry order Take Profit hammer shooting star inside bar pinocchio bar head and shoulders harami risk to reward ratio trading calculator trader’s age emotion control stop-hunting false signal trading session New York session Asian session non-farm payrolls fed rates decision central banks mentor teacher Forex education Forex books candlesticks bonuses tradable bonus no deposit bonus deposit bonus cashback pending orders counter-trend trading risk-to-reward ratio 1-2% rule uptrend downtrend news releases slippage emotional trading stop orders limits orders trailing Stop correlation Correlation Matrix EURUSD EURJPY RSI Overbought/Oversold indicator doji morning start candlestick pattern liquidity London session gap requote US dollar greed excessive trading Expert Advisor trading instrument Twitter Trump euro Canadian dollar Japanese yen Mexican peso currency pairs Fed China economic news currency wars USA interest rates trade agreement H1 H4 D1 sell trade buy trade price level trading system COVID-19 coronavirus lockdown checklist Default mode network Nonfarm Payrolls intraday traders lot size Stop Out margin breakeven pip point entry price chart candles weekly candle daily candle engulfing candle Doji W1 fears money management trading signals Charles Dow Dow theory primary trend Relative Strength Index signals market noise trading volume oversold/overbought corrections candle M30 GBPUSD GBPJPY pending order fundamentals Interbank order Stop order Limit order Standard account Interbank account liquidity provider M5 chart gold XAUUSD Chinese yuan flat US Dollar Fed Interest Rates inflation level XPTUSD platinum XAGUSD silver USDCNY Chinese Yuan instruments swap trading hours Buy Stop Sell Stop Average True Range ATR range sideways range price level trading scripts Excel tables entry point equity balance applications highs and lows RSI Fibonacci terminal server proxy OS Windows XP self-trading Forex advantages gap trading Fibonacci levels USDJPY Buy Limit Cherry Blossom market cycle mark-up mark-down consolidation distribution long positions short positions double bottom triple bottom double top triple top pattern signal presidential cycle Elliott wave Kondratiev wave Forex terminology quote standard lot mini-lot micro-lot cross pairs exotic pairs counter-currency terminology Margin Call long position short position buy sell candlestick chart bar chart line chart range market channel high low ADX OHLC patterns profit level martingale aggressive EAs VPS demo account EA tester trading signal chasing the market clicking the button oil trading lot EUR cent account Forex mentor novice trader emotions control fear psychological level round numbers Key Levels indicator MetaQuotes iOS Android mobile trading mobile terminal VPS server financial portals day trader position closing short timeframe fast trading news site news portal FXStreet Investing.com Forex Factory ForexLive DailyFX CPI PPI economic indicators Non-Farm Payrolls monetary policy FOMC retail sales inflation rates program installation intuition apps ECN brokers market makers financial 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market cryptocurrency market figures diamond divergent triangle symmetrical triangle reversal signal financial intelligence financial education long-term investing triangle ascending triangle descending triangle risk control stocks Forex mutual fund EUR/AUD AUD Australian Dollar Australia ECB RBA demo live live account spike bearish spike bullish spike breathing techniques meditation unusual trading tips useful habits nutrition intermittent fasting Three indians pamm mam expert advisors start-up capital business Forex business oversold overbought reverse signals 15-minute chart full-time trading discipline drawdown inflation devaluation IDR LAK export Russia regulations regulators Central Bank quantitative easing quantitative tightening Donald Trump Joe Biden coins indexes DXY ICO Mrs. Watanabe beginner trader carry trading young traders women traders productivity self-discipline rectangle sideways channel trend figure Alexander Elder John Murphy Jack Schwager limit order leaving Forex 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losing streak perfectionism consistent profits starting capital initial investment market psychology japanese candlesticks PAMM trust management money manager holidays market sentiment CHF CAD Great Britain pound Swiss Frank reserve currency averaging morning routine initial capital potential profit reverse pattern rounded bottom rounded top saucer inverse saucer IB Program IB Commission Sharing reversal patterns deposits payment methods payment systems local transactions trader’s block market balance