The path from novice to expert forex trader is one of the degrees. You’re far from being an expert, but you’re not a newbie anymore, either. In truth, you’re actually in a good place. The goal for forex traders of all experiences is simply this: make more pips than you lose over time. Keeping that little nugget in mind can help the intermediate trader find more paths to success and avoid disappointment when having a bad day in the market.
The trader with some degree of experience will be able to determine a forex trading strategy that he or she finds comfortable. The best forex trading method, system or philosophy is unique to the individual and each trader will have a different opinion on what works for him or her. Perhaps the trader has tried a few, dismissed some as useless, and found some to work well.
An experienced trader will also have tried a few different forex trading systems or platforms. A forex platform or system is a software program that allows the trader to manage accounts and automate many of the manual tasks when monitoring and trading the forex. As with strategies, there are plenty out there – choosing a system is a matter of personal taste and individual fit. It pays to read blogs and newsgroups to discover new and untried systems.
The intermediate forex trader will have become acquainted with – and perhaps made use of – one or more trading derivatives. Derivatives are complex strategies of trading, such as options or futures. Strictly for the intermediate to advanced forex trader, derivatives require an experienced hand. The purpose of the forex derivative is to provide a certain degree of leverage or mitigation of risk when making a trade, especially if the trade is of unusually high risk. Other forex strategies, including options, futures and spread trading are also for the advanced trader and worth investigating to determine if they fit your trading style.
It’s great to want to be a better trader. However, remember that you don’t need to improve your skill level to stay consistent with your trades. The old saying, “If it ain’t broke, don’t fix it” applies here. If you have a strategy that works and are happy with it, then you have a distinct advantage over the new or unsuccessful trader.
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