A written trading plan or agenda to begin forex trading is the best thing you can do.
When you spot a possible trade set-up, calculate the risk/reward, look at your support and resistances levels, check your indicators, study the chart, decide if you would enter into a long or short-term trade. If all signals align and you feel comfortable placing the trade - then write down the entry price and stop-loss and place your order.
Some may think why should I write down my entries and stops? Well, studies have shown that people who write down their goals accomplish more in life than those who mentally set their goals. The same happens in trading. From personal experience - when a trade was not going well, I would mentally move the stop loss. Whereas when I wrote my stop loss on paper and on my order, it was executed. This helps build and maintain trading discipline. FYI - I use a yellow legal pad to write my trading entries. Studies have shown that the color yellow promotes better thinking. Just a thought.
Watch your trade closely, if need be tighten the stop or take profits. If the market is going your way and your trade makes new highs, keep your position. You may choose to add to your winning trade.
Day trading is great! You can trade forex from anywhere. To trade forex live, you need to maintain a positive mind and attitude. Let's go over some things you may have not considered which can help you stick to your trading plan.
Concentration - make sure your trading space or office is private and quiet.Office - preferably with a window to allow for natural light which is easier on the eyes.Desk - should be neat clear of clutter. You just need your trading pad.Do not answer the phone - that goes for email, cell phone, chat, etc.Do not leave trades without your stops.
The key to accumulating profits is to protect your trading capital at all times. Make sure your stops are always in. When trading do not over leverage, use small positions. Never trade with money you cannot afford to lose. At the end of your trading day, go over your charts and plan for the next day.
Some other things to consider is joining a forex trading room, chatting with other traders, and/or follow an experienced forex coach who can provide you with some strategies.
For more information on forex day trading please visit our new blog forex.fxlivedaytrading.com. Providing quality reviews, articles and writings on forex online.
No comments:
Post a Comment