The Six Steps to Investment Success In Forex

The subject of investment success in forex market is probably the most difficult to understand. Although a complex topic, it is critically important if you want real success as a trader or investor. If you really understand the incredible benefits the following six steps to investment success in online forex market can unleash for you, you are on the right path.

To start with, let’s think about trading or investing in terms of the following variables:

1. Reliability

How reliable is your trading system? What percentage of time do you make money? Divide the number of winning trades you make by the total number of trades and you get your reliability factor in your forex market investment success.

2. The size of your profits

Compare the size of your profits and your losses when trading at the smallest possible level. Take out the average size of your winning trades and compare it with the average size of your losing trades. And you will get rough idea of relative size.

3. Cost of your trade

The cost of your investment or trade can be negative force on your account size whenever you trade due to execution costs and brokerage commissions. Be wise and be aware of just how big these costs are for you.

4. Trading time

How often do you trade? The opportunity factor can make a big difference. If you hold the first three variables constant, then how often you get the opportunity to trade can make all the difference to your forex market investment success.

5. The size of your investment

The size of your account or investment capital, can have a direct impact on your investment success in online forex market. Having a smaller account means that you will have to average more than 10 percent profit per trade just to cover the cost of trading. But if you have a million dollar account , these costs becomes insignificant.

6. Your position-sizing model

Your investment success in forex market online also depends on how many units you trade at one time. The amount you win or lose per share is multiplied by the number of shares traded.

Would you want to focus on just one of those six variables enumerated above for investment success in forex market ? But you will probably agree that all six steps to investment success in forex is important.

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