Trading is more than just a science rooted in ratios, charts and numbers, it is also an art. In fact, in addition to being talented, the best traders are said to hone their skills through discipline and practice to develop valuable skills such as self-analysis to understand what inspires their trades and learning to keep fear out of the equation. Whether you are a novice or expert looking to enter the world of Forex trading, these 10 habits of success of people using Forex trading will help hone your craft.
1. Define Your Goals
Have a clear idea in mind as too what you would like to achieve, then be sure your trading method is in line with your goals.
2. Choose How You Will Execute Your Trades
Before entering the market, you must establish what information you need to determine whether you will exit or enter a trade. Select a methodology, such as technical analysis etc., then be consistent.
3. Calculate the Expectancy/Reliability of Your System
Look back over your last 10 trades to measure all your trades that were winners versus your trades that were losers, to determine how reliable your system is, then adjust accordingly.
4. Keep a Printed Record
Keep a record of your entry and exit points, including underlying issues that swayed your decision, such as if you panicked or were too greedy etc., to help objectify your trades and gain discipline to execute according to your system instead of your emotions.
5. Manage Your Risks
Resist trading funds you can’t afford to lose because it won’t allow you the patience you need to profit.
6. Accept Losses
Before entering the market as a trader, you must embrace that taking a loss is part of the game, in order to be a successful trader.
7. Focus on Price
Before entering the market, study price behavior, then stay small.
8. Be Patient
Avoid having the attitude “when will I become successful” and instead adopt an attitude of “however long it takes is how long it takes”.
9. Keep a Clear Mind
Take a few minutes before trading each day to clear your mind and help ensure you have the proper mindset.
10. Perform Weekend Analysis
Performing a weekend analysis, when the markets are closed, allows you to prepare in advance. Take this time to study weekly charts for news or patterns that could affect your trade, which will allow you to make your best plans.
In addition to implementing these best habits of success using Forex trading, it is also strongly recommended that you select a compatible broker or trading platform for best results.