“Motivation is what gets you started, habit is what keeps you going.“
– Jim Ryan
Did you know that forex trading success or failure greatly depends on your trading habits and a proper mindset? If you have bad habits and a wrong mindset, you‘ll never be able to earn money, no matter how good your strategy may be.
This intro for newbies will introduce some winner habits that is very easy to establish. These habits have proved to help many traders to improve their forex trading.
Why don‘t you give them a try as well?
Start changing habits today and one day you might be thankful for great forex results and a considerable increase in profit.
#1 – Keep a journal
Not many traders keep a record of their activities, but those who do, they notice its immense effectiveness. If you want to keep track of what works and what doesn‘t, keep a daily journal for traders. These journal statistics are, in fact, a record of your daily tasks, observations, and learnings.
For example, the journal should contain things like date and time of the trade, currency pairs, an applied strategy, risk profit potential, final result. It will certainly help you enjoy the benefits in the long run and help you get on the road to forex trading success.
#2 – Preparation plan before trading
Every serious trader must make some pre-trade preps and make a detailed strategy plan in order to survive the forex market jungle. A well-conceived plan means everything in this market.
Don‘t get too excited with short-run success! You must develop a comprehensive plan in order not expose yourself to psychological mistakes that could cost you avoidable failures.
Preparations before trading are necessary if you want to minimize risks and maximize profit. These preparations can be very simple or detailed, depending on the forex result you want to achieve.
#3 – Finding your niche
If you are a beginner in forex trading you must learn how to find your niche and not throw yourself at every opportunity to make money. You have to determine strategies and perform a risk management in order to avoid a losing trade.
The easiest way to do that is to determine your specializing niche. Match your personality with the pairs you want to trade, determine your niche finding time frame and define your specialty.
Create a framework that makes sense and that will help you apprehend the forex market behavior. When you figure the tendencies that suit you the most, you‘ll easily create a proper forex trading framework.
#4 – Calculate your risks
A successful forex trader only takes calculated risks, which means that he devotes a certain amount of time on analyzing the risks of every single trade before trading. A master in forex always knows how much he can afford to lose, and how many lots he must lock in to keep the risks within the set boundaries.
#5 – Trading with stop losses
Although even the successful traders experience occasional money loss, it‘s important to keep your winning trades higher than the losses in the long run.
That‘s what the stop loss method is for – to prevent an every day losing trade from ruining an account. You have to keep in mind that even the experts in forex trading lose money, and you have to observe it as a cost of making a forex trade.
However, it‘s important ko keep control of these losses allowing them to remain small. If you succeed in this, you‘ll become a real master in forex.
#6 – Use the price action
Masters in forex trading are good psychologists. Being a good psychologist is crucial in learning how the forex market operates. If you are capable of getting into the mind of a forex trader, you can make accurate predictions to make the right moves.
In order to trade with success, you must get to know the patterns and trends of movement in exchange rates. To observe how the price of currency pair changes, a good trader must make a technical analysis of his trading and pay a close attention to price action determined by forex indicators.
#7 – Don‘t let the market run your life
Don‘t allow your life to get caught in the money, profits, trades and measuring results. Constant checking of your trades and sitting in front of the monitor all day long will not keep your productive and enable you a happy and healthy lifestyle.
It‘s important to find the best life balance, and to have a life outside the forex market, as do all the successful traders.
If you allow forex trading to run your life, you‘ll be nothing but a slave to your charts and brokers. You should make Forex a positive part of your life, regularly taking breaks, indulging in a hobby or relaxing with friends and family. The market will be waiting for you when you decide to return.
#8 – Don‘t give up
Don‘t be an average trader whose only concern is how to make a profit. If you want to become a successful forex trader, you have to learn that success in forex means so much more than just making instant profits. You have to learn to make gains on regular basis, and this process takes time.
You have to be prepared for this hard and exhausting journey by learning everything you can to master both the art and the science of forex. No matter how complicated and hard it may seem, you mustn‘t give up‚ ’cause “winners never quit and quitters never win“.
The life of a successful forex trader consists of good habits that improve the trading performance and conserve resources. If you want to get better at something you have to concentrate on it every day.
It‘s not enough to think about getting money – you have to consider which steps to take to be able to make a profit and attain favorable results in forex trading. A routine to think creatively and have faith in your ability is essential in this business.
Stick to your rules and approach forex trading the right way if you want to taste the success.