“Profitability comes from productivity, efficiency, management, sternness, and the way to manage the business.”
– Carlos Slim
As a trader, there are some factors which have to be taken into consideration when planning your unique trading strategy which would reap you your profits. We can refer to these elements as ‘secrets’ if you wish.
So, here is the “7 Secrets” to improve Forex trading:
The higher the number of indicators, the higher the profitability is often misunderstood. Always remember not to overload your computer screen with surplus indicators.
Plan a step by step, easy to use trading strategy. It might get you a profitable edge in the market.
Never jump into the markets on a whim or without any pre-defined reason. Always trade in line with your approach and initiate trades if you have a precise knowledge of the market price. Always remember not to act on impulse or pure guess and avoid emotions when trading.
You will see that it is essential to keep a trading journal of all your trades. This will teach you to evaluate a trading pattern and learn from it.
Journals inspire you to attain discipline and help you to organize yourself. This plays an essential role in developing your positive trading habits which are vital for becoming a long-term trader and would keep you on top of the game.
Why? Charts reflect everything!
Don’t get carried away with merely analyzing fundamental news and watching business news. Just learn to read the price chart and then let the price action dictate your trading decisions, not what the TV says.
More importantly, never guess trades; learn to read the charts as they will tell you everything.
The most simple aspect that matters to you should be what the price chart is telling you.
“Leave some for the next guy.”
Everyone has a pre-set target in mind before taking the plunge into trading, and it’s better to even pre-define your exit before you begin.
Traders often hope that their trades will go in their favour. Hence, they desire to move their stop just a little further in a few events. Traders also move their stop as they believe that a losing trade will come back to them.
While craving is usually a moral aspect, in Forex Trading it can motivate you to make irrational decisions that could result in whipping out your trading account.
Don’t finalize on a position size that you think is too big. Always remember never to allow any of the sum of your trades to get you utterly emotional. Every time the market moves in opposition to you by a pip or two, you need to learn to feel at ease. The market is not going anywhere; you need to trade in a way that you can handle emotionally.
Some people risk an excessive amount of money for the “rush” feeling, a few do it out of lack of information or greed. However, complex the case might be, make sure you are risking a decent amount typically 3 % not more than that.
Risking too much could make you anxious and risking too less could make you doze off on your desk!
If you don’t, who will?
Every time you make profits in the markets you need to reward yourself and not re-invest all your profits in an attempt to make crazy profits; take it slow. Have a withdrawal plan which could be weekly, monthly, quarterly and stick with it.
The Bottom Line
You are in the markets to make money to give you a purchasing power, to buy things, or even to achieve financial freedom or to travel extravagantly or to change your profession or even lifestyle. Financial strength alone will give you the freedom to do what you want when you want, and more importantly will keep you motivated. In turn, this motivation will encourage you to trade more and even learn all the FX secrets!
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