Time is always running It seems like yesterday you were doing your New Year’s resolution and now, in the blink of an eye, it's July; The second quarter is over, so it is time to check your progress regarding your Forex trading expectations for this year. Have you had increases in the last months? Are you closely following its behaviour?
If your answers to those question are not yes, maybe it is time to recheck your objectives and goals and start focusing again. Here you can find some great and easy-to-follow practices and recommendations that will help you get back on track with your Forex trades. As soon as you start incorporating them in your strategy you will start seeing the fruits of your labours; and in the near future, we hope you feel more prepared to make the best decisions. If you don’t know what Forex is and how to benefit from it, we advise to get your hands on Forex trading books in pdf.
Prepare for the Show
Normally, when we have an important presentation we spend way more time preparing it than giving it. We take into account the audience and choose the best way to talk about the subject we picked or have to talk about, right? This is almost a guarantee to success for our performance.
Well, when we talk about forex trading it works the same way. Making plans and a good analysis before trading will help you make smarter decisions. For example, these are the most common tools to evaluate before stepping into any trade, and some tactics for you to use:
* Top worldwide news.
* Charts, graphics, predictions and any other important information you can have access to.
* Planning for different case scenarios and have contingencies prepared.
Find the Place that fits you the Most
A good strategy in order to improve your performance and be more successful is specialising. Discover what fits you the most according to your abilities and style.
You could choose the two currencies you want to focus on and work with those, or you could identify the indicators that hosts the most important information for you and trade those, or you could determine period of time to watch a pair and make a decision.
If you focus on a niche, it will be easier to improve your trading performance because you will feel as a fish in the ocean.
Document Trades in a Notebook
The only way we have to improve our performances or decisions is to keep track of them.
Having a journal in which you keep the record of the market behaviour, some important data, the explanations for some economic events; and most important, your own notes and results, choices and results are what makes the difference between being a really profitable trader and a not so good one.
This technique will help you prevent mistakes that were already made and it will allow you to improve your strategy.
Minimise your Lost Using Stop-Losses
In life, sometimes we have good and bad days; sometime we win, sometimes we lose. However, when we talk about money we always hope to win, and a bad loss can destroy the earnings of a long time. In order to stay away for that there are stop losses, which is a determined price you set for your currency to be sold if it reaches that point. In order to achieve this, keep in mind that:
* To minimise your losses, you have to keep an eye on the market behaviour; however, there will be many aspects that will run out of your hands or that you just can’t see coming. In that exact moment you will need your stop-losses to cover for you and drop the trade if it's not going well.
* Stop-losses will limit the amount of money you lose per transaction.
* You can adjust them on the go.
* Using stop-losses doesn’t mean you are not risky enough to be a trader, it means you are clever and that you are trying to be assertive with your investments in order to be profitable consistently.
Manage your Time Appropriately
Organising your time and defining how many hours you are going to dedicate to each activity you do will make you a more effective and productive person.
* Forex trading functions 24 hours non-stop; however, that does not mean that you have to be working the same amount of hours, that is proven to be counter-productive.
* Limit the time you are going to spend trading and increase the amount of time you spend thinking and planning. Managing time also consists in setting up the ground so we can make the best decisions.
* Time is worthy, and time is money, so don’t waste it. While you are on trading time stay focus and compromised; don’t get distracted with other activities.
Applying these recommendations will hopefully help you become a better trader and reach better incomes than you had before. Remember that practice makes perfect and with these good strategies you could go beyond your current means.
| < Prev | Next > |
|---|
