Happy Friday, traders.
Today we’re going to post some short and sharp points that hit the nail on the head for any aspiring Forex trader.
– Go back and analyse your trades. See what types of trades you were more consistently profitable with. Eliminate the trades in which you were consistently losing. Eliminate 50/50 trades.
– Start with a smaller position size. You’ll notice that with a smaller position size you’re able to hold longer and let your trading plan play out by not getting shaken out with the slightest price movements. If you’re constantly nervous about losing, it’s quite likely you’re trading to large a position.
– If you’re constantly being stopped out at the bottom or top, it means that you’re a part of the herd, and doing exactly what the herd are doing. So, think of what you can do to counter this… Scale into trades, or exercise more patience by waiting for a confirmed move in your direction.
– Consistency is the ultimate name of the game for a successful trading career. Consistency starts with just ONE DAY. Aim for one profitable day at a time. Then 2. Then 3. Etc. This is how confidence is built and good habits are formed.
– As consistent as you may think you are, NEVER let 1 trade wipe out several days of gains. If that 1% loss wipes out 90% of your gains, then your winning % is meaningless.
– Trading is all about pattern recognition, so study the commonalities. Charts, industries, news, etc. It’s not just the price or the chart. It’s a cumulative analysis.
– Lastly, it’s all experience. Just keep working hard. Wake up earlier, and stay up later than everyone else and you’ll do better than everyone else. Reward = Effort.
There you go folks, it’s short and sweet so you can go enjoy a long Friday lunch.
Source: Vantage FX Blog