How to become a profitable forex traderMarjan Rijavec
How To Become a Profitable Forex Trader
Understanding 3 Cs – Blueprint to success
During my trading career which has started in summer 2013, I have realized what are 3 the most important mindset components to become a profitable forex trader.
So we can all agree that trading is purely mindset game right, but how to put that into more context?
Here is the big question!
What kind of a mindset do we need to achieve in order to win in trading?
Let me introduce you to the 3Cs which stands for:
- Clarity (You must know what are you looking for in the market, how markets move, why do they move like that, understand aspects of price action, etc..)
- Confidence (You want to be stable and confident executing your trades)
- Consistency (You want to achieve consistent profit and go with one approach/strategy which works for YOU!)
So to become a profitable trader we firstly need to obtain the first C, Clarity!
Only when we will observe charts with clarity in our head, then we will be able to achieve Confidence (which is 2nd C).
How to achieve Clarity?
- Trade higher timeframes – like Weekly and Daily charts (you will have more time and make smarter decisions)
- Trade only one setup and ignore everything else (this one helped me so so much)
- Design your system to be very simple (let us play the game!!! Try to explain your perfect setup in 30 seconds. If you are not able to do it then you have to work more on clarity my friend!)
- Find a credible mentor and community to grow (You were thought how to speak, write, communicate with people you are surrounded for the whole life. It is the same in trading…You have to surround with credible people who know how to trade profitably.)
- Watch this video where I explain how I enter the trades
How to achieve Confidence?
So, first of all, let us clarify what means being confident in trading?
For me being confident in trading means that trader knows what is their edge and UNDERSTAND why they are profitable in a long run. The root of that is usually understanding the power of risk to reward ratio and game of probabilities. A confident trader has an inner feeling of security and control which is again highly connected to the understanding the risk and money management.
In order to achieve confidence you will first have to achieve Clarity, this is the first rule, but here are some trading tips which will help you achieve trading confidence.
- Trade demo account with respect and don’t go live until you have achieved at least 6 months of consistency.
- Risk tiny portion of your account per trade (so you won’t be afraid of pulling a trigger). This doesn’t mean 1% of your account per trade…That means from 0.1% – 0.5% risk per trade at first. Then you will slowly increase the risk after a year or so.
- Understand the power of risk management – If you risk only 0.5% on each trade, that means you can lose 20 trades in a row and you would still lose only 10% of your account. That gives you confidence, feeling of security and control!
- Surround yourself with mature traders and mentors – not everybody is going to be encouraging and understandable, actually, in fact, online trading communities can be pretty harsh and without any verified trading performance. So find people who are transparent and talk from the heart.
- Time and experience – In forex trading and trading, in general, you simply cannot skip the fact that time will bring you experience and experience will bring you confidence. So don’t try to become PRO overnight, it is not working like that.
Tip: If you truly want to become a profitable forex trader, firstly take care of your CLARITY. Study what is going on in the market, why is it so, how your trading setup looks like, etc…
How to achieve Consistency?
This one is very funny and It usually happens by not realizing it consciously at all. So it comes naturally.
I believe that when you stop chasing consistency a.k.a. profitability you become a profitable forex trader. Because if we focus on the end goal which is to make consistent profits, we simply forget the importance of the process which gets us to that end goal.
For me, it came completely natural, without forcing it. I was working hard and testing all the stuff and crunching the setups, etc…But the Consistency is just the result of Clarity and Confidence together.
Here is one trading tip which will help you achieve consistency
- Don’t watch other traders ideas (if you are in private trading community like we have here, then yes, but if you are looking for ideas on for example on tradingview or forex factory or any other public websites, then I doubt you will find consistency. Why?
Whenever you search for other people opinion, for others trading ideas or trading signals that means you are not confident in your idea or you are simply looking for another approval for the trade which means you don’t have clarity either confidence! See?
As a trader, you have to aim for inner stability. Sorry to say but trading is not a team sport. It is crucial to have quality traders around yourself but talking too much about trading ideas can be conflicting and harmful. It took me many years to openly talk with anyone about their trading ideas while not allowing that their opinion influence me. This is confidence but it takes time to achieve that so don’t rush. Have you ever get caught in a conversation about 1 specific pair for like 30 minutes debating all the scenarios? Meh…
With traders, you should talk much more about your attitude and mindset, issues you are facing, observations, etc…And not so much about specific trading idea or signal.
I have blown one of my accounts in my early days because I was influenced by my closest friends performance…Then I said »Oh sh*t! I have to start trading as well!!! Let us deposit money on the trading account and let us start.« I blew it like 90% of the account in one single trade. But what is even funnier…99% of traders start in a similar way or copy someone else idea and go all in, etc… The stories I get on a daily basis are pretty much, scary…
So surround yourself with high-quality traders and mentors who have verified trading success, achieve these 3 CSs with them and become a profitable forex trader. And remember firstly you need Clarity, clarity leads to confidence and clarity + confidence leads to consistency. There is no way around. You can get more clarity by downloading this e-book
What you have just received is a blueprint for success and the big picture how to become a profitable forex trader. It is still a long path in front of you but if you need some more guidance or even mentoring reach me whenever you want.
Take care, if you need anything just reach me!
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