6 Actionable Forex Trading Tips (That Actually Work in 2018)
Forex trading is a lucrative means of income, especially for those who know what they are doing. And in order to be a master in Forex trading, you need to have actionable plans, which work. One of the advantages of Forex trading is that currency prices fluctuate randomly, and you can use this to earn your livelihood if you follow the rules.
So, how do you succeed at Forex trading? You can master the art in several ways. Firstly, watch the commodity forecast so that you know about the different prices of the commodity you are trading on. Other than that, follow some actionable steps. Here are some pointers to help you out.
Keep a Clear Mind
Just like any other situation in your life, your trading success or failure can be greatly swayed by your mind and the decisions that you make. No matter what happens, have a clear mind. In other words, always have a proper mindset before you trade, even when you don’t know anything or don’t have the exact means of turning the tables so that you have sufficient profit.
Moreover, practice discipline when you are trading. Just because you anticipate that there might be a great return on your investments, you don’t need to invest all your capital in it. At the same time, make sure that you are not completely broken down when you lose some money in the market conditions.
Do Proper Research
Research is imperative and you should be able to follow this in any step that you take in life, not only in Forex trading. Before entering the market, thoroughly research what is happening in the world, and how it affects your trade.
You should not only follow the market conditions, but also act on them at all costs. So, before the day opens, decide which currencies to trade on. You should also decide if you want to trade in before an economic report is released.
Keep a Trading Journal
If you want to be a smart trader, you need to be a meticulous record keeper to jot down any change in the record, and always keep up-to-date on different trends. This helps in two ways: 1) when you win, you’ll be able to know what you did correctly that made you win. In fact, this way, if you lose, you’ll be able to know why or how you lost, and not repeat the same process again; and 2) you’ll also be able to know about the market conditions from a glance.
While maintaining a journal, take notes of the entry and exit conditions of the market everyday, along with the resistance and targets and the opening and closing time of the market. This will help you study the trend over time, at your leisure. You won’t even need to be online when you do, and you can go through the stats over a chilled beer or a cup of coffee.
Be Patient
Patience is a virtue, perhaps greatest of all, when it comes to any aspect of your life. However, it is more important when it comes to Forex trading. You need to be patient enough to wait for the correct moment to cash out or invest more. For example, in currency trading, develop a plan and see what works and what doesn’t. This will definitely take some time. In fact, if you want to achieve something, you need to have a healthy dose of patience.
Work Ethic
Be it in Forex or on any part of life, always have a strong work ethic. So, make sure that you have a steady routine, and be prepared to start Forex trading every day no matter what happens. Of course, there are exceptions to that rule. However, you shouldn’t take exceptions as a law and make it a habit. Even if you were an automated trader, you need to do some research, or some sort of testing systems, which require work. So, treat it as a job, and provide it with importance, and you’ll succeed.
Money Management System
Since we are talking about money here, and the ways to earn more, make sure that you have a good money management system in place. Ask yourself the question, “How much of my portfolio can I risk on an individual trade?”
Based on your answers, you can seta daily limit for investments on your portfolio. The limit can change based on your tolerance for risk, and your trading style. It also depends on how much you can lose or have already lost in a day. If in doubt, don’t invest much, but move on with your gut instinct and invest a small amount.
At the end of the day, when it comes to Forex trading, you need to be straight with yourself and have a set policy in place. Even if you don’t have a set policy, don’t overdo your levels and make sure that you have enough funds for your basic needs like food, housing and clothes before you invest more in Forex. It is not a ‘get rich scheme’ and you need to get that straight before investing.
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