Learning to Trade Forex and My Top 4 Daily Forex Trading Rules
Your journey of becoming successful and consistent forex trader is a not a one-day plan. It is certainly not a sprint or get-rich-quick scheme. Learning to trade forex and trading the financial markets is a progress. Only after certain progress you can set your own top daily forex trading rules. Trading is a business as any business out there, whether is investing in properties, investing in stocks for a passive income, construction business, renting houses to foreign visitors, online drop-shipping, playing professional sports…well you name it. What those businesses have all in common?
For a business to be successful it needs a founder (persona) on the first place. It comes up with an idea, but without an experienced person, and someone who did not invest time, money and effort to master and understand the foundations of specific business and industry, this person can not expect good results.
Imagine you would read about real estate business yesterday for the first time in life, and today you already made your first moves and you bought some houses just because you think you know it all. Sorry, but it does not work like that.
It is same here in the trading business. You need to practice and study as much as possible when you start with forex trading. You need to gain experiences and develop your “gut-feeling” for the markets first, before you even try to start trading with your real and hard-earned money. As the time pass and you get more experienced, you need to build up your own trading plan and trading journal to strengthens your confidence and trading habits in order to become a successful forex trading. Did you ask yourself what you need to master in order to become one?
As we said here, you need to master Trading Mindset (psychology), Trading Edge (strategy), and Money Management. Only then you can build your “daily trading routine” with your daily top trading rules you need to simply follow in order to stay on top of your trading game – consistent. You can become and stay consistent forex trader, if you follow your proven daily trading process.
Here are my Top 4 Daily Forex Trading Rules I follow religiously and that helps me to stay focused
1. Organize your forex trading
You need to have a weekly/daily schedule. My trading week starts on Sunday, when I spend half an hour to analyze my 18 currency pairs and pick only best-looking ones to focus for the following week. I do the top-down approach (going from the Weekly to the Daily and to the 4-Hourly chart) on each currency pair. Only when you focus on the good-looking volatile currency pairs, and when you know what you are looking for on the financial markets you can increase your trading probabilities.
If there is nothing worth watching and trading for the following days I would simply not be wasting my time and money on the ugly-looking currency pairs and low-probability trading setups. We are not trading just to make as much as possible of trades, but we are here to enjoy our trading, follow it with a passion, and to stay in this business as long as possible by managing the risks and growing our trading accounts steady without big draw downs and mistakes. As a swing trader you should not be worried without going without a trades made for a week or few. There are times when you need to take action and there are times when you should stay out of the markets.
After I finished my weekend preparation and when I know exactly what my plan is, I simply close the charts and I come back on Monday just to see what is going on. If I made any trade(s) last week I also take a little time to go over it, analyse it to improve myself, if there is anything to learn from it. Note I do not trade on Mondays and Fridays because those two days are usually retracements days when we often see many fake moves. Other three days are when most of the action and business is done on the markets, especially during the active trading hours as London and U.S. trading session.
Those are the sessions I pay attention to, if I am waiting for a possible trading opportunity on any of my 4-hourly charts. If you have trouble with focus and discipline read your trading plan every morning before you turn on your trading charts.
2. Follow your Trading Plan and Journal
Trading plan is your daily guide to trading success, consistency and longevity as a trader. It is your business plan with your Daily Trading Schedule, Money Management rules, trading rules (strategy) to help you improve your Trading Mindset and being more disciplined and patient trader. Same as trading journal. How can you expect to improve yourself if you are not tracking and analysing your past trades and decisions.
3. Take responsibility to achieve your trading goals
What your goal in trading actually is? Is your goal just to trade for a passive income? Or is your goal more specific as trade and manage $100 Million of others people money as a fund manager? Without knowing why do you trade the markets you will hardly achieve anything. Only a person who take full-responsibility for his/her action can achieve goals and vision. If you blame everyone and everything except yourself you do not deserve nothing you want to achieve.
4. Enjoy your life
Do not let trading becomes your number one priority and focus. Do not overthink it. Enjoying your life is my last amongst top 4 daily forex trading rules. Trust your journey, your trading process, relax, focus and you will become much better trader than someone who is always stressing about what the markets are doing, and forcing the action.
You can become a better trader and person only when you have other goals on areas such as family & friends, finances, health and diet.
If you have poor relationships with the close ones that will affect your trading mindset and actions.
If you not manage your finances properly and you are in poor financial situation that will affect your trading.
If you are not working out, spending time outside and eating crap that will affect your health, mood and trading decisions.
Do not forget to take some time-off too when necessary to clean your mind and regain your energy. Like to travel? Book your destination and take few days off your trading charts.
That is it! Those are my top 4 daily trading forex rules which helps me to stay disciplined, patient and consistent forex trader. Apply them to your forex trading and see how they help you.