1. Start with a goal and apply a trading style that works for you.
Defining your goals is the first thing you need to work on when investing in Forex trades. Even if you haven’t learned everything you need to know, at least it helps that you know where you are going.
2. Select the broker that provides an appropriate platform.
Create a comparison table of the different currency brokers you have researched. This can help you find out if the broker has a good approach in trading.
3. Identify how you will execute your trades.
Select a methodology that you think will work for your trade. This is an important step to do even before you decide to invest money in Forex trading. There are many big decisions you have to make and one of this is the methodology you are going to apply to execute your trades. And once you have a chosen methodology, apply it religiously.
4. Be cautious with your entry and exit times.
It is kind of confusing to look at charts at certain times. There are cases when the buying opportunity on weekly charts would display as sell signal on the intraday chart.
5. Measure expectancy.
In Forex trading, expectancy refers to the formula that you use to know if the system you are using is reliable enough. Measure the performance of your previous trades. Do you have more winning traders over losing trades? Add all the winning trades. Divide it by the number of winning trades to see if you made a loss or gained a profit.
6. Accept your small losses.
Be realistic with your expectations when trading. Part of it is accepting the fact that your money will be at risk the moment you funded your account. Thus, you should see that money as your expenses during a travel. As soon as the holiday is over then the money is all spent. In trading, one of the important values is learning how to accept losses. Don’t forget that it comes with risks and you have to be prepared for it.
7. Learn the importance of positive feedback loops.
A good feedback loop is an outcome of a trade that is executed according to plan. You can create a good feedback pattern by planning the trade and executing it accordingly.
8. Analyze your performance every weekend.
Why on weekends? This is because the markets are closed during the weekends and that gives you an opportunity to analyze charts on a weekly basis. If you are searching for a pattern and even following news related to your trade, it is important to set aside time studying the charts.
9. Secure a printed record of your objectives in trading.
Create a chart that enumerates your reasons for trading. You can also include the fundamentals that influenced you during the process.
To wrap things up, don’t forget that trading is an art. Continue applying the tricks we shared above because these can help you have a more organized trading approach.