Making money trading foreign currency is not that difficult. It’s making money consistently where the big challenge is, and in that sense, trading currency is not unlike trading bonds or stocks. In order to get on the track of consistent profits, you need to create a clear plan, educate yourself about ins and outs of the foreign currency exchange market and then stick to your strategy, even when it seems that it does not yield the best results at times.
- Successful traders view trading as a business, with detailed strategies, firm money management and strict risk control.
- Attempting to double your account each week is chancy, and attempting this feat will increase risk exponentially.
- Successful traders are grounded, and understand that setting ridiculously high expectations adds unnecessary pressure.
“An example of a realistic and attainable goal in trading is achieving a positive return on investment (ROI) each year. For some, an annual return of 10% is a realistic target and defines success; others may set goals based on daily, weekly, monthly or even quarterly status.”