8 Simple Ways Of Treating Forex Trading like A Business
You have to treat trading as a business if you want to become a consistently profitable trader who earns money consistently month after months
What is a business
A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities, The term business can also be used to define the efforts and activities of individuals to produce and sell goods and services for profit.
Question ? What is the difference between consistently profitable traders and consistently losing traders? What is the gap between these two types of traders?
If we are to be honest there are few reasons why there is such a huge gap, but the most critical of them all is how one treats his trading.
Have a vision statement
Every business out there whether it is big or small must have a vision statement. A Vision Statement describes the desired future position of the business. Elements of the vision statement reflect the business purpose, goals and value.
It has to grow (Growth)
A business is defined by its growth rate, Think in Long Term – Don’t Trade Like You Are Going to Retire Tomorrow,
30% to 50% is all you need annually. Compound this for 10 years and you’ll be amazed by results.
Rome was not built in a day, but Hiroshima and Nagasaki were destroyed in a day. Growth is not only numerical but you have to grow personally, you have to grow discipline was and as well as strategy wise.
Losses are a cost of doing business
Losses are part of trading and they are unavoidable. The thing is losses are coming with lots of emotional pains and most of the traders struggle to manage these emotional ups and downs. As a result of that traders are ended up making lots of trading problems.
Start identifying the costs in your trading. Here are some of the trading costs common among every forex traders. These costs are usually coming from brokers part.
Spread and Broker fees.
Interest rate differentials.
Protect your capital
Capital is the foundation of every business that is where you build up your empire from.
Simple, Prioritize the RISK first, then go for the Profit. What is this mean?
Start limiting your risk per trade to 1% to 2% per trade. That way you can stay long this game. your trading should normally evolve on profit
A Small Profit
A Big Profit
A Small Loss
Set up a good trading station
Having a clean trading setup is very important if you want to treat trading as a business. Why is that?
Because a clean trading setup improves your productivity which allows to taking quality trades and overall it allows you to stay calm throughout the trading day.
Have a trading journal
Strict daily trading routine
Have a trading plan