Who is the forex trader? Answer-the trader who trades in the world foreign exchange market is the forex trader. Forex market is the big financial market and heist liquidated market in the world. So we can say that forex trader is the biggest and heist liquidated trader in the world! No, the answer is not such as this. But the question is, how to be a profitable forex trader? For the answer of this, we can say, it’s a big processing, big timing, and big skillful matter. There is a myth about a survey is, only five percent of fx traders are profitable and successful another ninety-five percent are losers. So a profitable forex trader is an uncommon, unique, rare percentage successful businessman. Because a profitable fx trader achieved some extraordinary education, techniques, habits and discipline, and some skills.

Only 33% of traders can earn profit after 3 month. The proportion in any given year of which market participants can do so continues to be 7.7%. This implies that 92% cannot even reach this goal. The traders in forex trading know that there are several ways to maximize their opportunities for consistent profits. A trading journal can also come in handy because it is very easy and efficient to track past performance. Research on essential indicators and recent economic announcements may give traders a better understanding of which currencies are most likely to be undervalued and then apply this insight in trading decisions.

To be a profitable forex trader a trader must have to achieve and know some subjects and matters. Which are explained below-

1. Know about forex market structure and participants

As a forex trader, you have to know about market structure and market players. In fx

Markets the main products are trading currency pairs. Each currency is exchanged against one another currency. Also, the commodities, energies, index, crops metals, etc are traded in this market. The fx market is a fully decentralized market. This modern forex market began in 1990.Its fully electronic, online internet-biased operation system.

About five trillion or more money transaction volume per day in this market. These transactions are made by big banks, commercial companies, central banks, medium-small banks, hedge- funds, retail brokers, and retail traders. But eighty percent or more transactions are made by some super banks. This is called the interbank market. Those banks trade for international business payment purposes. The forex market is a big spot speculative market also. All the market players trade in this market for speculative profit benefit. We retail traders are also speculative traders. It is necessary to know all the activities of all market participants.

2. Select and dealings with brokers

In forex market as a retail trader you must able to get access by a retail broker. In this decentralized forex market you can participant from anywhere in the world by a broker. For this you must choose a broker and deposit some of the money in the broker. For your deposit money safety you must know the broker financial regulation. The broker regulated under which regulation authority. There are some scam brokers and your deposit could be insecure. The best financial regulation authorities in the world are giving broker licenses. Like F, C, A of England, Securities and Exchange Commission {S E C] of U.S.A, ASIC of Australia, etc. So you must choose a regulated broker for money securities.

The forex broker are different type of services like as ,market maker brokers, ecn brokers, dealing desk brokers, non-dealing desk brokers, etc. We prefer ECN ,non dealing desk broker. Every broker has trading platform for trading , like as MT4, MT5, web trading platforms. We, retail trader, trades in world fx market by this trading plat form. So we must know how to use them properly for trading.

3. Education

Forex trading is fully pre learned ,pre knowledgeable business. You have to learn before you earn. Without learning, try to do profit in forex, like as going to drive a car without knowing  driving .AS result happens accident, as fx trading lost your account deposit. There are many resources meant  to take fx education. Like as free online forex educational web site, paid online fx education course, off line forex academy etc. We suggest you choose a forex mentor  who is a  professorial and longtime profitable forex trader. who has trading experience more than eight years. And get training one or two years from him.

4. Learn market analysis

There are three types of fx analysis-fundamental, technical and sentimental analysis.

The trader who analyzes the market best, he is the best profitable fx trader. So learn how to analyze the market. In fundamental analysis, you know all things about that. Like forex news, geo-political condition of currency-related countries, central bank  monetary policies, interest rate, all economical data which influence the forex market.

Technical analysis is mainly analyzing part of forex trading. For trade entry, trade exit, profit target all are dependent on technical analysis. How to mark supply-demand label or support resistance label, how to mark market trend, market ranging position, market break out position also are done by technical analysis. So learn technical analysis very well.

5. Build a trading strategy

Who is a profitable trader, he has his own proven, profitable trading strategy? All big professional traders have a personal trading style. So build a trading strategy. And back-test it first- time. When it provides constant profit then you can apply it for real trading. There are lots of forex trading strategies. You can choose any one and update it. Trading strategies mean which circumstance you enter a trade.

6. Do trading plan

Do a trading plan before trade. As you not plan before trade as you plan for loss in the trade. So do trade fully pre-planned. Like all things, lot size, where entry, where exit, trade management, risk percentages, risk-reward, etc are to be included in the trading plan.

7. Money management and risk management

Forex trading is a fully risky business. Any time all of the total account balance could be finished. So preserving the account balance is the first job to be a profitable fx trader. Be a risk manager, before to be a trader. How much properly do you minimize the risk as your profit in the trade. In money management, you know how much percentiles of total balance you can risk on a trade. What is the risk-reward ratio? what lot size is suitable at per account balance. We suggest you don’t risk more than five percent on a trade.

8. Trade management

As a trader some trade management skills are necessary. It is after entering a trade and live

Trade manages purposes. So know when to set the trailing stop, how to book partial profit, why sometimes necessary to take manual stop loss.

9. Trading psychology and trading mindset –

Forex trading is eighty percent psychological and twenty percent technical. So without psychological fitness, there is an eighty percent risk of failure in trading. It’s a modern business educational subject which calls-‘financial behavior”. To make suitable trading psychology and trading mindset a forex trader must overcome some mental and emotional barriers. Like as, so greedy, so confused, so frustrated, overconfident, euphoric, over-analyze, angry, etc. So know about forex trading psychology. There are many resources online to get it.

10. discipline

A profitable forex trader is a person of full discipline. He must stick’ up on some rolls. It’s his trading habits. All-time he must flow those rolls with his trading strategies.

11. Patience

Know the art of patience in trading forex. How to wait for the best trading setup. Sometimes the best trade is not to do trade. Know the waiting for the trading objective result, getting a handsome profit amount. Be patience in loss recovery, not to be in a hurry, and not take revenge trading.

12. Use a bigger time frame

A small time frame is so dangerous for forex profit. It’s made by market noise and it has no stability. Actual market pictures are visualized by a big time frame. Big market player’s movements, those who control the market, visualized this big time frame. All big and institutional traders are doing trade in big time frames like four hours, daily, and weekly charts. So don’t trade less than the H4 chart.

13. Gather experience and do practice

All knowledge, study, and strategies about forex could be failed without experience and practice. You must spend a certain time gathering experience before a profitable forex trader. We suggest the first time you do practice in a demo account for six months or more, then you start real account practice with a small amount and continue the practice for more than one or two years.

Conclusion     

Trading is the very tub job in the world, and forex trading also. you cannot get rich overnight in forex trading. As a forex trader first-time you jump in the trading process, not in profit. When you process well in trading, then profit will come automatically.