One of the biggest mistakes many forex traders make is that they do not consider forex trading as a business. On the contrary, they consider them gambling addicts rather than quiet and counting merchants. If you want to succeed as a forex trader, you have to think of it as a serious business because it is actually a very serious business.

Forex trading should be treated as a serious business. To be a successful forex trader, it is important that you consider trading as a business. It is not possible for you to keep 50 in one business and convert it to £ 20,000 in the short term. You should apply the same principle to forex trading. One of the biggest reasons traders lose money is the expectation that a small amount will turn into a huge profit at a very low point.

There are costs to being a forex trader like any other business. Your goal as an entrepreneur is to bring in more money (all successful trades) through revenue than you spend on exit. If you can do this, you will make a profit. However, if you allow your expenses (all losing trades) to get out of control, you will eventually lose money and your trading business will go under (and one day your trading account will explode)

Before Enter into the trade

Here is a review of the steps you should take to start your Forex business:

• Make a business plan.
• Choose regulated and reliable broker.
• Available capital for trading & Your trading Goals
• Practice on a demo account and find suitable and profitable strategies.
• Start trading with small amounts until you are consistently profitable with real money.
• Gradually increase your trading size and the time you spend with trading.
• Always evaluate your performance and try to improve your trading.
• Find a method that gives you an edge over the market.

Last, not least, get informed to stay ahead of the crowds: this one is very important because like any other business once you become profitable the education does not stop there. The markets are changing and evolving all the time and like all good businesses, you must move with the times. Continually seeking further education and market knowledge will help you stay ahead of any changes to the market.

As we mentioned above, you will have to make sure your winning trades are more than offsetting all your trading costs if you want to be a profitable trader. So, there are basically two ways to accomplish this:

1) Aim to have winning trades that are significantly larger than your losing trades.

or

2) Have a very high percentage of winning trades compared to losing trades

Make a Good trading plan

A trading plan is a comprehensive decision-making tool for your trading activity. It helps you decide what, when and how much to trade. A trading plan should be your own, personal plan – you could use someone else’s plan as an outline but remember that someone else’s attitude towards risk and available capital could be vastly different to yours.

For making a good trading plan for business you will need the following –

• Discipline
• Steps for record keeping
•  Fibonacci levels
• Supply and Demand Levels
• Chart Patterns
• Trending Lines
• Best Money Management

Conclusion

Not every trader can dedicate enough time to treat trading like a full-time job, but whatever proportion of your life you do give over to trading should be taken seriously. In order to treat your Forex trading like a business, you will need to account for all your costs. Your successful trades not only have to outweigh your unsuccessful ones – and there will be plenty of those over a long enough period of time – but they also have to cover your expenses.

Trading requires hard work: treat trading like a serious business and it will reward you accordingly.

Happy Trading!!