How can made $100 into six figures by forex trading?

by madhav joshi digital markting expert

Foreign exchange, often known as FX or currency trading, is a phrase used to describe forex (in basic terms, currency). It is a decentralized global market in which all of the world's currencies are traded. It is the world's most liquid financial market.

We begin with defining the objectives and trading style.

Before embarking on any journey, it's critical to have a rough notion of where you're going and how you'll get there.

As a result, it's critical to set specific objectives and then make sure your trading strategy can help you achieve them. Each trading style has its own risk profile, which necessitates a specific mindset and approach in order to trade successfully.

The Trading Platform and the Broker

Next, it is critical to select a reliable broker, and spending time understanding the distinctions between brokers will be extremely beneficial.

You must be familiar with each broker's policies and procedures for creating a market. Trading in the over-the-counter market, often known as the spot market, differs from trading in exchange-driven marketplaces.

A Trading Strategy That Is Consistent

Before you enter any market as a trader, you need to have a rough notion of how you'll make trade execution decisions. You must understand what information you will require in order to make an informed decision about whether to enter or exit a transaction. To choose the optimal moment to execute the trade, some people look at the underlying fundamentals of the economy as well as a chart.

Determine the points of entry and exit

The next step I followed was to determine the points of entry and exit.

When looking at charts in several time frames, many traders become perplexed by conflicting information. On a weekly chart, what appears to be a buying opportunity could actually be a sell signal on an intraday chart.

Calculate Your Probability

I realized that calculating probability is another integral part. The formula you use to determine how trustworthy your system is is called expectancy.

You should go back in time and assess all of your winning and losing deals, then calculate how profitable your winning trades were compared to how much money you lost on your losing trades.

Small Losses and Concentration

The most crucial thing to understand once you've filled your account is that your money is at risk. As a result, your funds should not be required for day-to-day living expenses.

Consider your trading funds as vacation funds. Your money is spent once the vacation is over. Have the same mindset when it comes to trading.

This will mentally prepare you to accept tiny losses, which is essential for risk management. You will be far more effective if you concentrate on your trades and accept tiny losses rather than continuously counting your equity.

Loops of Positive Feedback

A well-executed trade in accordance with your plan results in a positive feedback loop. When you prepare and execute a trade properly, you create a positive feedback loop. Success generates success, which creates confidence, especially in profitable trades.

Conduct a weekend analysis

Examine weekly charts during the weekend, when the markets are closed, for patterns or news that could affect your transaction.

Perhaps a double top is forming, and the pundits and the news are predicting a market reversal. This is a form of reflexivity in which a pattern may prompt pundits, who then reinforce the pattern.

Maintain a Paper Record

A printed document is an excellent tool for learning. Print a chart and make a list of all the reasons for the transaction, including any fundamentals that influence your decision. Mark your entry and exit positions on the chart.

Fill up the blanks on the chart with any relevant information, including emotional motivations for taking action.

Did you feel frightened? Were you a little too greedy? Did you have a lot of anxiety? Only by being able to objectify your trades will you be able to build the mental control and discipline to execute according to your system rather than your emotions or habits.

There is broker that is Xm which provides webtrader and mobile trading application that ensures the full security due to data encryption technology at the time of trading, you can try this.

Conclusion

While converting a $100 into six figures may seem far-fetched to many, this article should stand as a proof that with proper research and a well-formed plan, anything seemingly far-fetched can turn into reality.

The biggest advice I would give to anyone who wishes to achieve a similar goal is to keep these points in mind.

Understanding your objectives and choosing the right platform and the broker are the initial steps to achieving this goal.

Maintaining records and doing proper analysis is also necessary, since without them you'll not know what to look out for.

There is a broker that is XM which provides excellent service and helps you understand the trade market by seminars and webinars and let’s you access trading demo accounts to try your hand out from scratch.