Secret Of Successful Forex Trading | 7 Simple Tips To Become Successful Forex Trader
Deep secrets of forex trading
1. Desire to be rich
2. Set clear goals
3. Control your expenses
4. ‘Pay yourself first’
5. Make your money work for you
6. Secure what you have now
7. Secure a future income
1. Desire to be rich
“The first principle of success is desire – knowing what you want.” Robert Collier
Do you know what you want? So often we confuse the desires of others with our own. This may mean that we want to please our loved ones or perhaps we are not confident about our decisions.
The key to achieving success is to know what YOUR desires are.
Rich means something different for each of us. Money may not bring happiness but it sure oils the wheels. Many would shun the idea of seeking material goods and wealth. But unfortunately, we live in a society where nearly everything is measured in dollars. It may be that you just want security. The security to know that you will never want for anything and that you have the capacity to help others in times of need. And that help would make you feel enriched.
Know what it is that YOU desire.
2. Set clear goals.
“Goals are dreams with deadlines”. Diana S Hunt
To reach our dreams we need goals.
This is what Chris Widener of “Made for Success” has to say: “The key is to make sure that our goals are step-by-step markers on the way to our dreams. Our goals should be little bits of our dreams coming true as each time period passes by. So many people have dreams, but until they sit down and break the dream up into bite-sized bits that can be accomplished by a particular date, they will most likely never make headway in achieving their dream.”
Financial goals need to be broken into “bite-size bits” too – short, medium and long-term – putting a little aside each month in order to achieve them.
Think about your dreams. Is it to become an international speaker? Even this has a dollar value attached to it. You’ll want to become a member of a speaking club such as ITC OR Toastmasters and there will be joining fees. Perhaps as you progress in the organization you will enter contests that take you away from home.
Make your goals S-M-A-R-T: specific, measurable, achievable, realistic and time-bound. Make a plan to achieve your goal.
“People don’t plan to fail, but fail to plan.”
3. Control your expenses.
Budgeting may sound boring but it is an important step to your financial success. Budgets reflect the cash effects of plans of action. You wouldn’t imagine a successful business, not budgeting, would you?
Have you ever had $100 in your wallet at the beginning of the weekend but by Monday there’s nothing left but you can’t remember what you spent it on? This is what can happen without a budget – a number of seemingly small payments can quickly add up. If you don’t pre-plan you can find you have made a few impulse payments on frivolous items and have nothing left for what you really want.
Are you shocked when your credit card statement arrives? Does it look like it has a hard-core balance that won’t go away? This is expensive borrowing.
Why is it that we borrow – in other words, “spend money we don’t have”? Because we want something and want it now, but as we don’t have the ready cash to pay for it, we get a loan or use credit cards. This need for instant gratification has a cost. This cost is called interest. And credit cards penalize with some of the highest rates.
When borrowing, keep the following rules in mind:
• Borrow for things that appreciate in value and/or will generate income such as your home, shares, a profitable business, investment property.
• Avoid (or at least minimize) borrowing for things that depreciate in value. Depreciating items are things like whiteware, motor vehicles, entertainment equipment, clothes, furniture, sporting equipment.
4. Pay yourself first
Every payday you pay your bills, the rent or mortgage, you even pay your favorite restaurant for your night out – but what about you? Do you pay yourself?
• Save the money you have left, or
• Put a regular sum aside for yourself?
I would suggest that the best option is to put aside for yourself.
Carry out the process of a budget to make sure all expenses are met – yes and some entertainment too! In your budget allow for the same amount to be put aside every payday for YOU, this is a must. Start gradually to make it easier – $25 if need be. Increase the amount as you get used to living without it. Amazingly you’ll find you can get by without it. Every time you have an increase in your pay, increase your investment.
5. Make your money work for you
There are advantages to investing a regular sum. “You don’t have to be rich to be an investor but you do have to be an investor to be rich”. This is true. If you invested $100 a month (the cost of a daily cup of coffee) at say 5% after 50 years you’d have more than $250,000. This is the magic of compound interest.
By saving regularly you are positioned to purchase bargains on sale. “Dollar cost averaging” applies when you invest in assets that fluctuate in value. When you invest and the price is down you get a bargain as you buy more units or shares. You score when the prices go up and your units are worth more.
Choose investments that are suitable to your goals. After all if you want to buy a house next year your investment strategy should not be to invest in equities. Shares lend themselves more to a 5 to 10-year time horizon.
6. Secure what you have now.
Isn’t it funny how we wouldn’t dream of not insuring our home but tend to balk at other insurance – particularly for ourselves? None of us is infallible and disaster could strike at any time.
While you enjoy good health insure yourself.
• At the very least you should insure to cover your debts with some to spare to provide for your family.
• Your ability to earn an income is your greatest asset – insure it.
7. Secure a future income.
By paying yourself first you will be ensuring that your financial goals are met. Make sure to include your retirement and future lifestyle as the most important goal.
However, you invest, whether indirect investments such as property and shares or in managed funds, make sure that your portfolio is diversified.
Returns on investment reflect the inherent risk in the investment. When you start on the path to protecting your future you may want to take some risk for potentially higher reward. As you approach retirement lessen the risks and preserve your capital.