10 steps to building a successful investment
Forex investment; If you ask any investor who wants to make money steadily, they will tell you that they have two options; either you follow a written plan methodologically or you lose.
If you have a written forex investment plan, you should be congratulated. Make sure you are among the successful minority. While there is no guarantee of winning at all, you have overcome a major obstacle. If you are using flawed techniques or are missing your preparations, you should not expect your success to happen immediately, but you will eventually plan your position and take new lessons. By recording this process, you will learn how to avoid repeating your high cost losses and how to make a good plan.
Whether you currently have a plan or not, we will provide you with a plan to help you create or renew your plan.
Avoiding Disaster 101
Forex Investment is ultimately a business. Therefore, in order to be successful, you need to manage your investment well. Some of the ways to do this include reading books, buying graphics programs, opening a forex account. If you start unplanned, this is likely to fail. “If you do not follow any written plans, you are doomed to lose every time you enter the market,” said John Novak, who is a highly experienced investor and is also the developer of the T-3 Fibs Protrader Program.
Once the forex trader should know where the market tends to stand and has the potential to go back. Again, investors should determine which action to take. Forex should establish certain rules when investing. Of course, this changes with the market conditions and is adjusted by the investor’s self-development. Every forex trader must write their own plan and consider their specific investment styles and earnings. Using someone else’s plan will not reflect your investment characteristics.
Prepare a Good Advanced Plan
What are the features of a good forex trading plan? Here, the following 10 items will be analyzed in detail for you.
1- Evaluate Your Skills
Are you ready for investment? Have you tried the system you prepared on paper and what is your trust that your system will work? Can you apply the signals of your system without hesitation? Trading forex in the market is a trading war. The benefits are ready, and you can get the earnings of investors who have poor plans and lose their money with high cost errors.
2- Mental Preparation
Feelings are important when investing. How do you feel? Did you sleep well last night? Can you push the obstacles for the future aside? If you’re not emotionally and physically ready for this war on the market, get a day off from your job. You may fail if you are nervous, absent or confused. Many investors have repeated words to feel ready for the day. You can use a sentence in this context during your investments, such words will increase your courage.
3- Determine the Risk Level
How much of your portfolio should you risk in your investment? This rate can vary between 1% and 5% in any forex trading process. This means; If you are going to lose somewhere between these rates during the day, your transaction will end. This is all about your investment style and your acceptance of risk. Your investments may not go well, wait and be ready for the next day.
4- Determine Your Earnings
Before entering an investment process, set a rational profit target and set a risk rate. So what should be the lowest risk rate you can accept? Many investors do not trade unless the potential profit margin in the most recent transactions is higher than the risk rate. For example; If your stop loss point is $ per unit, your profit point must be $ 3. Set your weekly, monthly and annual profit targets or set them as a percentage according to your portfolio and renew them regularly.
5- Have Your Homework
What is happening in the global markets before the market opens? Are overseas markets up or down? In Futures Exchanges, for example; What direction is there movement in S & P500 or Nasdaq100 index futures? Futures are an important signal. You can see how and in what time period the economy and earnings are. Prepare a list hanging on the wall that you can constantly see and look at this list in any timeframe you invest in forex. For the vast majority of investors, it is better to wait for the report to be published rather than take an unnecessary risk. The investor uses probabilities and wants to take risks as low as possible.
6- Make Preparation for Investment
On the day you trade, prepare your computer and slow down your computer during the process