Make no mistake about it. If you want to know how to win in the forex market, there are some things you are going to have to win. Here my top 5 things you are going to have to know if you want to win in the forex market:

1) You have to expect to take losses. It’s astounding how many people come into forex trading, and expect every trade to be perfect. I hate to break it to you but that’s not the way it works. You will have winning trades and you will have losing trades. It’s all a part of trading. Hopefully, you will have more wins than losses, and those wins will be more pips than the losses will be.

2) Trading is not gambling. You want to gamble, got to Vegas, because you are not going to make it far in forex trading. Trading is all about calculated risks. It’s both an art and a science. It has nothing to do with hunches and intuitions.

3) Bad money management can destroy a good trader. I don’t care how great you are at reading a chart. If you don’t know how to handle your margin, it will make absolutely no difference. If you are overleveraged, all it takes is one loss or big drawdown to destroy your account.

4) You have to control your fear. Fear can completely debilitate a trader. First off, don’t trade with money that you can not afford to lose. If you are using money that is meant to pay your mortgage or your bills, you are using the WRONG money. You can’t help but be scared when you are in a trade with money that should be used to pay for your home.

5) You have to be able to handle your greed. It’s the ultimate sin of a trader who is on a hot winning streak. It’s pretty easy to feel cocky when you keep making money. But be aware of that feeling. Because one big loss can really humble you.

About the Author

John Templeton has been a successful forex trader after learning how to trade price action Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared.