As I was planning to trade the currency markets today I carried out my usual pre-trading routine. I follow precisely the same routine everyday and it makes it possible for me to become more organized and productive as a trader and as a businessman.
As part of my Forex strategy trading methods I would like to share with you a checklist that every spot trader should use in order to become more successful, more organized, and elevate your return on investment.
Check your open trades and track their effectiveness: This should be the first step you take once you get to your computer. Check all of your open positions and
track their performance.
In a large number of occasions stop losses need to be moved to break even or you want to take profit early because of an incoming event (such as non- farm payroll). One of my mentors once told me that “everything that matters should be tested”, this without question applies to spot trading.
Analyze the market before you place any new trades: I cannot emphasize enough that you need to analyze the market before you open any trades. When you are in a trade you are not the same. You are thinking about the trade all the time and you are more likely to make non-sense decisions.
On top of that, you will be hitting your head if you see something in the market that creates a conflict with a trade you already took.
Read the news or read a news calendar: I am most of a technical Forex trader than a fundamental spot trader; nevertheless, I still try to stay up to date in what is going on worldwide.
One of the things that I use to analyze the fundamentals of the foreign currency exchange market is the news calendar. A news calendar provides you with a listing of all the important events that are happening in the internacional economy. Many of them also tell you the expected influence that each specific news event will have on the Foreign exchange market.
Check your risk, stop loss, and tale profit parameters: tiny things can make a enormous difference in Forex trading and minor mistakes can cause massive losses. This is the reason why I always check my risk, take profit levels, and stop loss levels. That’s the best way for me to guarantee that that everything is working fine and that I am going to meet my trading ultimate goals and ambitions.
Never let a small mistake become a large loss: I determined to include this one as part of the Forex trading checklist because I have seen a number of traders lose money this way. We are all human and we will commit mistakes from time to time.
One of the most typical mistakes traders commit is taking a trade on accident. I have done it and all experienced foreign currency exchange traders have. This is not that big of a mistake unless you let run and become a larger loss. My advice to you is that if you ever take a trade mistakenly close it immediately, never let a small mistake turn into a big and unnecessary loss!
I Hope you enjoyed my Forex strategy trading techniques please check back frequently as we post multiple times per week.
No comments:
Post a Comment