There is a right way and a wrong way to trade forex. It is impossible to dive into it with no experience and receive substantial returns, as many people think. But you can receive consistent returns if it is done correctly and if you have the proper education, system and money management.
Understanding yourself and your habits is the first component you should have to become a successful forex trader. How much risk can you tolerate? Do you make hasty decisions or sound ones? How do you handle your emotions after a losing trade? Think whether you can continue working your system and stick to a set of rules. Pay attention to these components as they will play a key role in your success as a forex trader.
But there are trading systems out there that do work and attempt to eliminate the emotional side of trading. And many of them contain a complete set of rules and guidelines to follow and tell you when to enter and exit a trade. What one has to realize is that systems do work, it's when we as traders fail to follow the system as it was designed run into trouble.
 Many forex systems yield spectacular results when back tested over a period of time. And if you are not sure what that is, it's when we take historical data and apply that data to the system to see what would have happened. However, the challenge becomes fighting off the human element and refraining from taking trades outside a set of rules.
If you want to become a successful forex trader and do this in the right way, then you should identify a profitable system and apply proper money management strategies. There are some known money management strategies. The one of them to follow is never risk more than 2% of your capital on each trade. Even if you had 15 losses in a row, it's only a 30% loss and you can continue trading knowing your system will eventually pull ahead in the long run.
Remember, when trading forex, it is very important to avoid some common mistakes both new and experienced traders make. Only patience and discipline are those things a trading system can go a very long way and potentially yield substantial gains.
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