It doesn’t matter if you are a newbie or seasoned Forex trader, there is always a need for some valuable tips to help you improve your trading in the currency market.
It may seem obvious to some, but it is not as simple as it seems. It all depends on your attitude and how you view the money you are trading with. The good idea is to think of your Forex money as vacation money. You use that money to trade, and there’s a good chance it won’t be there tomorrow. But at least you can come away with something: an important and useful experience. However, make no mistake: trading Forex is not a vacation! This way, thinking about it will allow you to psychologically accept small losses, which will ultimately help you become a better trader.
If you haven’t noticed, many basic rules of life apply to Forex trading, and this is one of them. Everything you want to accomplish in life and in Forex requires preparation. When the market is closed during the weekend, it is essential to do your analysis. Watch the movements of the past week, read the news, and make important decisions about the week ahead. It’s a very effective method for many reasons, but the main one is that you can work with objectivity on weekends. There is no pressure from the markets, no need to make quick decisions, take your time, sit down and make informed decisions on how and when to trade to avoid bull trap. Your main objective is to try to remain as scientific and empirical as possible.
Keep a record of trading orders.
This may sound silly to some, but it just might be the detail that differentiates a successful trader from one who fails.
When deciding about opening a position, chart the reasons why you believe it is a good trade. This includes technical as well as fundamental indicators. Then, make the same graph by listing the reasons for not opening this trading position. Consider your entry and exit points if you decide to trade this position and take notes on the trade. You can include your emotions about the transaction, your anxiety, and your level of optimism. Clarify if you were too greedy when closing the trade and always refer to this document when trading. By doing this, you demonstrate objectivity in your trades, allowing you to quickly acquire the skill, mental control, and discipline to execute trades according to your system and not your habits.
With all the forex chart patterns, numbers and rations, Forex trading is an art. As with all artistic endeavours, talent is necessary but not as important as practice and discipline. The tips we gave you will help you become a more structured and refined Forex trader, which will ultimately lead to you becoming a successful trader. The more you stick to these rules, the faster you will be a successful trader. And never forget: don’t invest the money you are not ready to lose.