3 Powerful Tips For Scalable Success In Forex Trading

Especially with the high-profit potential that you get while using leverage, it is possible to make costly mistakes as you take excess risk with the expectation of bigger rewards. But trading with leverage or margin trading needs to be done based on your risk tolerance or else you will be hit with huge losses. 

You should always use a margin calculator before entering trades and find the margin details to estimate the amount of funds needed in your account. Such tools are essential to plan your trades in advance. Those who are good at planning and risk management will become successful in their trading venture. But the bigger challenge is retaining this success and growing over time. This is what we refer to as scalability. 

In this article, I will be sharing 3 powerful tips that you need to follow for scalable success in forex trading.

Set Goals, Plan A Strategy, And Stick To It 

The first step to success is having concrete goals that are realistic and achievable. Setting a big goal that is impossible to achieve or a vague goal that does not make any sense will not be of any help in your trading journey. You need to make your goals as clear as possible. After that, you can start working on your trading plan and devise a solid strategy that aligns with your goals and requirements.

This strategy should also be well-defined and detailed. Once you are sure about the strategy and its profitability, you should stick with it without any deviation. The main cause behind the failure of many traders is their inability to stay focused on their original trading plan as they keep jumping from one strategy to another to get better results. However, consistency and discipline are the keys to scalable success.  

Let’s look at the steps that you should follow to mark a successful beginning to your trading career.    

• Define your Trading goals 

Firstly you have to define your trading goals. What kind of trader do you want to become? Whether you are going to trade part-time or full-time? How much profit are you expecting to make as a forex trader? You should start with long-term goals and then break them down into small short-term goals to make things easier.

• Create Your Trading Plan 

The second step is devising your trading plan which is actually the means of achieving your trading goals. Your trading style, analysis methods, trading techniques and more should be specified in your trading plan. You should also consider your risk tolerance and set your profit targets in terms of the number of pips you need to catch from a trade. Once you have made a certain amount of profit, you can call it a day and enter the details of the profit earned in your trading journal. For that, you need to first convert the profit you’ve made in different currencies into the base currency of your account, for which, you’d require a profit calculator. This tool quickly calculates the profit amount in any currency so that traders have a precise idea about their earnings.

• Implement Your Strategy And Stick To It

Once you backtest your strategy and are satisfied with the results, you can start practising with it on a demo account for some more time. When you are ready to risk real money, you can execute this strategy on a live trading account. It may take some time to start making profits with a new strategy and you should be patient. You need to stick with the strategy and wait while striving to improve your skills.

Keep Up With Daily And Weekly Forecasts And Forex Trends 

The 2nd tip that you need to follow for scalable success in forex trading is keeping up with the daily and weekly forex forecasts and trends. Many traders only consider technical analysis for making trading decisions and they end up ignoring other fundamental factors that are causing the fluctuations in currency pair prices. The key economic data releases and geopolitical events always influence the forex market.

The shift in trends can happen due to news events as they affect the market sentiments. So, you should utilise the economic calendar and keep an eye on the news to be aware of anything that can impact the forex market and cause volatility in the currency pairs that you are trading with. There are reliable websites where expert analysts provide forecasts but always do your own research before making a decision.  

Learn To Manage Your Emotions 

There are a lot of things that you learn as a beginner in the forex market. Learning the market fundamentals and technical trading concepts requires both time and effort. But one thing that takes even more time to learn is managing your emotions. All your trading decisions should be based on logical calculations and you can depend on tools like trading calculators to find different trading values.

But when we are driven by our emotions and feelings, we forget to consider the logic and jump to conclusions which could go wrong. This is why you need to study trading psychology and avoid the urge to act on your impulses without thinking about the consequences. It is impossible to not experience any emotion as a trader but you should not let these emotions overpower your reasoning abilities. 

Here are some steps you can take to maintain emotional control while trading. 

• Don’t Let Your Ego Affect Your Trading Decisions.  

Having confidence is important to succeed as a trader but overconfidence and ego can put you in a dangerous position. You will start thinking that you are invincible and the market will always move in your favour. Because of this, you will enter trades without considering the risk and the results can be devastating. So, you should never let your ego affect your trading decisions.

• Don’t Trade When You Are Frustrated 

Sometimes we feel a lot of frustration after getting disappointing trading results and we become desperate for a win. You should never enter a trade when you are frustrated or dealing with severe stress. As your brain might not be able to make a sound decision in this mental state, therefore, you should take some time off and relax your mind before starting to trade again.

• Don’t Blame The Market For Your Mistakes 

The habit of blaming the market for your own mistakes is an emotional response. You are avoiding taking responsibility for what happened and this will stop you from correcting your mistakes and growing as a trader. Thus, you need to reflect on your trading decisions to identify what went wrong and then take it as a lesson to do better next time.

• Use Charts And Data To Support Your Decisions 

Whenever you make an emotional decision, you will see that there is no logic behind it. So, you need to ensure that the trading decision is logical by using charts and data that justifies it.

Final Words

Finally, scalability in trading depends a lot on your abilities. You should constantly work towards expanding your knowledge and enhancing your skills. When it comes to growing your account, taking small steps will be an ideal approach. Remember that you are not running out of time or competing with others. Be patient and grow at your own pace.