You start reading this article thinking what you will get some forex trading magic formula and just count money. The main forex trading secret – that it’s no any secret. Only hard work, discipline and rules can take you to the profitable forex trader. Of course, it’s an open secret, but no particular formula when to buy or sell. Just keep the plan and you will get results.
Let’s take for my trading plan:
Have a primary forex trading plan and follow it.
First of all, you know my opinion that trading plan has been created only for demo trading don’t waste money to focus strategy. Belief me to establish a strategy with real money, it’s not enough one or two deposits, its need much more. So just create your trading system only with a demo account.
Write your trading plan
To have a trading plan you have to follow some rules, so just write it and follow. Trading plan, at least, has 2-3 rules to set trade. Forget to think that the market is high enough, so it’s time to sell or price enough bottom to buy. Keep your rules, and only then your rules are confirmed – take action. A trading plan is not randomly jumping in the market, its rules following.
Use charts not only to draw some patterns but write your opinion on each pairs chart that you trade. Write that you thing can happen next.
Write your all trades, for example, uses Excel to keep your files. This one of thing which you must have. In the future, you can analyze that you have done, you will see recurring things that you will improve. The track record is not where you entered and where the stop and limit. You have to write why you came to a position, in which price, where your stop and limit, how price gone then it reached your limit or stop. Make print screens for your trades.
Forex is like all other activities, if you want to be lucky, you need experience, after many years I can say, that sometimes I see very similar situation in the charts, and I can imagine that could happen. Or even then I see some situation in the chart, I just don’t do nothing, just watching and waiting.
It is the most important thing in financial markets; I guess with all things in this world. Just give you some examples, that discipline matters. Then you have traded with you, and if it continues to go against you, you want to close it fast as possible, but let’s stop for a while and think. Before you trade, you have decided where you will close the position with your stop loss order. So let’s wait, don’t close it manually in the middle of, your distance to stop loss. Another situation about discipline than trade goes to your side; you think that is enough, and it should be closed.
Believe your system
The losses are the a part of this business. Don’t panic, and then get losses, even get it tandem. Don’t change the system after losses, believe it and only adapt it. More people problem that they don’t follow the system, but change it or looking for a new one. The not forex trading system most important, but money and risk managements, so be disciplined and count before every trade how much you can lose.
You need to have some time then you don’t think about trading. Just walk with your dog, go for a coffee (not at home). Remember then you trade all week you need to have some hobby, where you can even don’t with about trading
Feel and trade comfortable
I realized that it was so important to trade with comfortable. Keep risk management, risk/reward. Comfortable forex trading means, then you don’t need to sit near monitors looking at trades like the babysitter and even if you got five losses in a row, it hasn’t had a significant effect on your deposit.