This article is taken from the YourTradingEdge magazine (MAY/JUN 2010 issue)
The author, Mario Singh has been trading forex for five years. He is the co-founder and CEO of FX1 Academy, the largest Forex Academy in Asia. He is a popular seminar speaker, writer and forex coach. As he is a regular guest on CNBC, his views are widely sought in the industry.
- Mario Singh on how to become consistently profitable in the forex market. ‘Until you can manage your mind, do not expect to manage money.’ –Warren Buffett
Having had the privilege of speaking to audiences about FX trading worldwide, I have noticed a common question: “What is the best strategy to trade forex?”
Each time I hear the question, I can’t help but smile. After all, that was my biggest question when I first started trading forex. It’s almost always, “Give me the strategy first, and we’ll talk about trading later!”
In this article I hope to shed some light on successful trading, and how we can all get there. Let’s start with the definition of a successful trader. The benchmark of a successful trader is that he must be consistently profitable. Notice the word ‘consistently’.
I’m never impressed when I hear someone is “making 500 per cent in a month”. Don’t get me wrong – these are amazing results; but any trader worth his salt must know that his game plan is to stay consistently profitable. It seems inevitable that the few who make exorbitant returns in one month get washed out the very next month, because they probably took on (and continue to take on) excessive risk. Remember, you might be able to make 500 per cent a month for a particular month, but if you lose only 100 per cent any month, you are out of the game forever.
