ALL TRADERS MUST KNOW – Essential Lessons for Those Who Want Success

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Have you ever wondered or questioned why 90% of traders experience losses and failures when they begin their trading careers?

You may also need to know that almost 80% of them decide to quit being traders because they feel unable to be profitable.

Or, let me ask you a simple question:

HAVE YOU TRULY SEEN A PROFITABLE TRADER AROUND YOU…? Your parents, siblings, or friends.

Starting from now, try to observe honestly and attentively.”

Becoming a Profitable Trader is NOT EASY

I don’t need to scare you.

You’re no longer a child who needs to be encouraged with candy or ice cream.

You need an honest and objective perspective to make decisions correctly, according to your mature judgment.”

Even though I am profitable, I still believe that TRADING IS NOT EASY, and if you want to start a business as a trader, you must know exactly what you’re doing if you want to sustain yourself in this game for the long haul.

 

If it’s now the year 2023, I have been familiar with the Forex market for approximately ten years.

Therefore, I will share with you important lessons as a trader so that you don’t have to make the same mistakes again.

Or, if there’s anything related to trading that you’d like to inquire about, please write it in the COMMENTS. Hopefully, I can provide an answer.

 

The Overbought and Oversold Levels Can’t Be Relied Upon

The first lesson you need to know is that overbought and oversold levels cannot be relied upon in the long term.

When you trade by following the advice you read in various books about overbought and oversold levels, most books will tell us that if the market reaches the overbought level (which means there are too many buyers in the market), the price ‘SHOULD’ reverse lower. Conversely, if the market is in the oversold level (which means there are too many sellers in the market), the price ‘SHOULD’ reverse higher.

You must quickly realize that in actual trading, when (based on stochastic analysis) the market is in an overbought or oversold condition, it does not mean that the market price will IMMEDIATELY REVERSE DIRECTION.

REMEMBER…!!!

During strong bullish or bearish trend periods, the market can remain in the overbought or oversold areas for days, weeks, or even months.

 

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Let’s take a look at the chart below.

On the H4 chart of GBP/USD above, it proves to us that the overbought and oversold areas indicated by the Stochastic Oscillator do not provide meaningful guidance.

The same thing happens when you use the RSI.

Many traders believe that when the Stochastic Oscillator indicator touches or exceeds the values of seventy or thirty, they should enter the market in the opposite direction.

That is a WRONG APPROACH and is not necessary.

The fact is that prices can stay in the overbought or oversold areas for an extended period. During this time, they can continue to rise or fall.

So, in my opinion, chasing overbought and oversold levels is not profitable in the long run.

Up to this point, perhaps there are questions you’d like to ask me? Please feel free to write them in the comments.

 

The Most Important Moving Average Settings

Another lesson is that the Simple Moving Average 200 (SMA 200), SMA 100, and SMA 20 are very important moving averages in Forex trading.

I want to ask you about a DANGEROUS habit of novice traders.

And this event might be familiar in your trading.

With all the optimism and hopes of “HIGH ACCURACY,” you combine five or six indicators on your trading chart.

After a week of trading losses, you casually remove those indicators and replace them with others.

Yet, luck doesn’t seem to favor you, and your losses continue to mount.

The following week, you repeat the process of refreshing your indicators once again.

Is this your trading style…?

Since 2015, I have developed quite a few trading systems downloaded by tens of thousands of traders worldwide.

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From my experience in developing these trading systems, I’ve come to the key point that there are many good and highly accurate trading systems.

So, it’s a mistake to always switch from one trading system to another just because you’ve experienced a few trading losses.

Because of this habit, you’ll never be able to trade successfully. You’ll never become an expert, even in one trading strategy.

If you ask me about trading indicators, for me, the 200-period Simple Moving Average (200-SMA), 100-SMA, 50-SMA, and 20-SMA are very important moving averages in Forex trading..

 

Why is the SMA 200 so reliable in technical analysis…?

The answer is that many institutions like banks, hedge funds, and Forex dealers follow this indicator.

That means if you pay attention to the SMA 200, there are a significant number of major traders doing the same as you.

 

Use a Strategy that Fits Your Personality

You should trade using a strategy that aligns with your personality.

When I first started learning to trade, I found many trading strategies scattered across the internet. One of them was scalping.

The traders claimed a high success rate using the scalping strategy, and I tried their approach for a few weeks.

The result was trading losses, drained energy, a lot of stress, and high psychological pressure.

The reason for this failure was that I didn’t enjoy the fast-paced nature of scalping trading. I didn’t want to monitor price action meticulously, and I didn’t want to sit in front of the screen all day.

Even if you can prove consistent success with a scalping strategy, it wouldn’t match my personality, so ultimately, I would end up losing a lot of money.

My advice is to find a time frame and strategy that suits your personality.

 

Discover within yourself whether you are a day trader, swing trader, position trader, or scalper.

Ask yourself if you are a technical trader or a fundamental one. Choose the indicators, tools, or strategies that you feel most comfortable with.

I trade on the daily time frame (D1) using a price break strategy.

Even though I have been successful, the techniques and strategies I use may not necessarily align with your personality.

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Risk Management

This last lesson may be the most important.

When I stopped thinking about the big profits I could make and focused on preserving my capital, I saw a significant improvement in my trading results.

Successful traders prioritize how much money they can afford to lose before thinking about how much money they can win.

The key to making money in the long term in the Forex market is simply the ability to stay in the game..

You need to PRESERVE YOUR CAPITAL so that you can stay in the game long enough to see your trading system reward you.

When you first start trading, many of you may have a gambling mentality.

This is entirely normal due to the beginner’s lack of knowledge.

You might be fixated on how much money you can make, almost without considering the risk of loss.

The end result is NOT PROFIT but, on the contrary, you LOSE YOUR ENTIRE TRADING CAPITAL.

 

When you embark on the journey as a trader, you should ask yourself when will I make a profit.

You should ask yourself how can I trade while preserving my capital and what do I need to do to limit my losses when I’m in the game one month or one year from now.

 

So, to succeed in the Forex market, first and foremost, you have to BE ABLE TO SURVIVE.

As a trader, I am a RISK MANAGER.

My focus is on risk management, and profits will come naturally as the market provides them to me.

As a RISK MANAGER, I have a methodology to limit my trading risk as small as possible while maximizing the profits offered by the market through the journey of trends.

 

These are the important lessons from me, which I hope can serve as food for thought for all of you if you want to succeed as a trader.

Similar to professional traders worldwide, throughout my trading journey, I have experienced ups and downs.

In my open positions, I can still encounter losses or profits, just like you, right…?

(SEMUA TRADER FOREX WAJIB TAHU – Pelajaran Penting Buat Anda yang Ingin Sukses)