Forex trading can be sometimes challenging, therefore you must be always honest to yourself and take full responsibility over the actions you take and decisions you make. Do you want to improve your forex trading? Follow 4 best tips to improve your forex trading today and make a change today!
Here are 4 Best Tips to Improve Your Forex Trading Today
1) Use ONE Forex trading strategy
When you start your Forex trading journey you must try different trading styles, markets and ideas in order to expand your view and get experienced. As the time goes, you must choose the style you like, pick what works for You and ditch everything else. Track your trades, decisions and improve yourself.
Do not compare yourself with other traders. Stop giving a s*** what Trader Johnny or Trader Brian is doing. Compare yourself to your old-self and keep pushing forward. If you want to fast-track your trading progress find yourself a Forex mentor, someone who is already where you want to be.
Find one thing, stick with it and get really good at it.
2) Limit the Number of trades
Today we have everything available on the reach of our hands. We can order the products from the other side of the world, we can eat the fruit which grew thousands kilometres away from us…you name it. It is the same with the markets – anyone can trade anything today. Different types of instruments, commodities, companies. But here comes the danger for the most of traders. You can trade all day, if you want, but from my experiences I know this is the recipe for a trading disaster.
Trading the markets all day will leave you confused, tired and exhausted. You must understand trading the financial markets is a marathon, so you must treat it this way. Market does not care for your wishes and desires to make money. Stop chasing the market moves and setup. You must understand great setups will always come to you, once you follow your proven trading process. Do your preparation and stay patient. Limit the number of trades you make in order to minimise mistakes such as taking low-probability trades in the middle of the nowhere.
3) Focus on the Price and Higher Time-frames
Price was and will be always right. Price is moving because of the fear and greed, because of the supply and demand. No one can’t fight against the price and market. Lower down your ego and respect this fact. Cut useless distraction as watching tens of other traders, the market predictions on TV, or reading the forecasts in the local newspaper.
The only thing that will be always right is the PRICE. You do not need magic indicators or software. Just follow the price. Now you are asking yourself, “How can I be on the right side of the market?” No trader is right 100% of the time. What matters is that you have proven trading edge which you are following consistently, and understand trading is the business of probabilities.
To increase your probabilities of trading edge, I always recommend traders to start using the higher time-frames, such as Weekly, Daily, 4 Hourly. Those are the same time-frames we are using in our own trading. Higher time-frames are the kings, and will always shows the real direction of the market.
Do you think billion dollar traders waste their time trading the 1-minute charts as the most retail traders do? Of course NOT! Successful Forex traders make their trading decisions based on the higher time-frames. Focus on the price and higher time-frames and you will increase your chances for your long-term success.
4) Start treating your Forex trading as a business
If you started with trading just because you need extra money in your left pocket, you better stop right now my friend. Trying to make a “quick and easy money” will never work on the long-term. Trading randomly will achieve exactly zero.
When you open your live trading account, and you decide to start trading the financial markets you did not become just a trader. You became a businessman, and your trading account is your capital you will manage. You are in the charge, no one else.
If you want to become a consistently profitable trader you will need to organise your trading. Set your daily trading routine, make yourself a Forex trading plan and trading journal, to track your decisions you make on the markets and in trading, and most importantly – write your trading plan and follow it religiously every single day, day after day, and trade after trade.