The financial market is associated with hundreds of risks so every trader must strictly follow the developed strategy without deviating from it, so as not to put his or her account balance at undue risk. For this reason, some newcomers believe that the everyday life of a trader is incredibly boring, especially if the market is relatively calm. In fact, this is far from being the case.
Experienced Forex traders never waste time, and even if market trends do not allow for active trading, they perform data analysis, which significantly improves their efficiency. We offer you to get acquainted with the basic principles of a successful trading day, which are always relevant, regardless of the trading style and personal preferences of a Forex participant.
There is no need for most traders to have a fixed work schedule but you can only be successful if you enter the market as soon as it opens. Moreover, if trading starts at 8 am, waking up a few minutes before the start is unacceptable. The direct path from the bed to the computer can lead to disastrous results since it takes some time for a person to switch to work mode and focus on his or her tasks.
If you wake up late or feel too tired, do not rush to start trading. It is better to sacrifice potential profit than the funds in your account.
Besides regular monthly statistics, it is very important for a trader to analyze every previous day. Is the market not moving? Make good use of your time and take a quick look at completed trades, identify which elements of your strategy need to be improved and which continue to work flawlessly.
Many platforms offer the option of keeping a personal log, which means that the results of your trading will always be in sight and you do not need to write down all the data or look for it on your PC.
One of the golden rules of successful traders is to regularly trade with the trend. Many newcomers chase after quick profits without realizing what losses the desire to get rich quickly can cause. An amateur's attempt at trading reversals can lead to a series of losing trades. As for trend trading, in this case, a trader's capital is more protected from risks, although the potential level of income is not very high compared to trading against the crowd.
It is necessary to trade according to a chosen strategy of behavior in order to be successful as a trader, but you do not need to follow a narrow strategy. You can shape your strategy of behavior in the financial market as you like and as you see fit.
Moreover, the best results can be achieved if your strategy includes different scenarios of behavior in accordance with certain changes in the market. In this case, you will always know how to react to certain trends and be able to remain calm in case of unexpected events. Of course, it is impossible to predict everything but this does not eliminate the need to systematically expand your trading strategy and study all possible outcomes in order to protect yourself from losing your deposit.
Even if you do not trade the news, you still need to follow the economic calendar. Every piece of macro news puts a lot of pressure on volatility, and slippage and large spreads are the rule rather than the exception at the time it is released.
If you feel stressed by seeing price spikes, adapt your trading strategy in advance. This can be done simply by following the economic calendar, separating potentially significant events, and identifying the possible developments.
Risk is an integral part of trading and if you have not come to terms with it, it is simply pointless for you to continue your professional development in this field. No one can guarantee you success and not always everything depends on you, so never risk the amount that you are not ready to lose.
Do not use money set aside for essential needs such as children's education or mortgage payments for trading, because risking it, you can suffer catastrophic financial losses!
Consider how you react to your losses as well. If every losing trade makes you panic, say goodbye to aggressive strategies. The main principle of a successful investor is composure and staying perfectly calm in any situation, otherwise rash decisions will inevitably lead to losses.
Treat trading like a business and it will be much easier for you to deal with situations when the results of some trading day do not meet your expectations. You should not blame the market for the fact that you lost money or its movement turned out to be not what you expected, and even more so, you should not try to prove something to the market. Responsibility for all decisions lies solely with the trader and if you find it difficult to put up with, leave the financial market until your capital has suffered.
However, everyone should work on reducing his or her losses. Losing positions must be closed without remorse, and the losses themselves must be fixed and not exceed predetermined values.
Analyzing previous trading sessions is extremely important but they should not affect your morale. A string of bad days should not knock a trader off stride or force him or her to deviate from the chosen strategy of behavior and start randomly opening positions. Every mistake you make is nothing but an opportunity to improve your trading strategy and increase your efficiency. Everything that happened before today is just a valuable experience that will definitely help you in the future!
If you missed the moment to enter the market, you should not "set off in pursuit". No one can analyze quotes around the clock and it is quite natural that you can miss a potentially successful trade. If you do not enter it on time, you definitely should not make a belated attempt. In this situation, the ratio of the take profit to stop loss changes and the resulting conditions are unlikely to be acceptable to you. It is better to skip the signal than to lose your deposit.
Random trading is doomed to fail. Successful traders never stop improving and progressing because that is what the market demands. It is volatile, its movement is unpredictable, and only a few succeed in conquering it!