After learning and understanding the technical and fundamental analysis,you should begin a new course which in my opinion is far more important than the two above analysis,and that is trading psychology. Only knowing the rules of a business is not enough,more important is how to be always comitted to observe that rules. First of all you should learn how to control your mind and emotions. Forex traders have to not only compete with other traders but also with themselves. Often times as a forex trader,you will be your worst enemy. We as humans are naturally emotional and we want to prove to ourselves that we know everything and are capable of taking care of ourselves.
All of these emotions and instincts can combine to provide us with trading successes every now and then. Most of the time,however,our emotions get the best of us to trading losses unless we learn how to control them.
The best way for getting rid of our bad emotions is to learn understanding yourself as a trader. Identify your strengths and your weaknesses and pick a trading style that is right for you. You should avoid becoming so overjoyed when you have a good profit or depressed when havind a bad loss.Another factor that made us emotional is being so overconfident of ourselves and our trades (especialy the wrong ones). For example when we buy EURUSD and pick up a target for it,we become so overconfident for that target and ignore all other signs that maybe we are wrong. As a result, when the trend goes against our speculations,because of our pride we stick on our wrong position and even add to it till it becomes a big disaster loss which made us lose all our money and the account.
Therefore for avoiding this mistakes and for becoming a successful trader:
First of all you should build a system,and practice to trade according to your system rules and never ignore that rules.Never rush for trading because early losses can damage confidence,and that can be difficult to repair.When you have a system for trading then you will take a complete responsibility for your trades and would never blame anybody else. Your system should help you to:
A-Think of protecting what you have before thinking about making money.
B- Before taking a position always know the amount youre willing to lose,because the most important thing in making money is not letting the losses get out of your hand.
C- Dont do anything except you know what youre doing. We should only take a position when our system give us the signal.
D- Dont ever average the loser trades,instead decrease the trading volume.
E- cut the losses short,let the profits run long.
F-Learn from every single trade,learn from mistakes.
G-Follow your own mind as a trader,only listen to others advise.
H- Decide on an exit point,before putting a trade.
In forex market,money management means how to manage our account in a way that it have the lowest damages. Your most important mission in this market is to protect your main equity. If you first manage to avoid big losses from you equity,then you can have profits afterwards. In the other hand if you get big losses at the begining of your trade,then you will spend the rest of you trading career trying to get back your own money from the market. Money management have some important basics:
1-In every trade,try not to lose more than 3-10% of your equity. You can do this by always using the stop loss order.
2-Always trade with maximum 30% of your account. Dont ever trade more than this amount. Forex market is one of the most risky markets in the world and it could happen any thing unexpected in it. So you should be always cautious an prepared.