Being a successful Forex trader is not something that you can achieve easily. Besides that, to be successful over the long run, you will need to constantly improve your skills and adapt them towards the changing market conditions. Today we are going to take a look at the most simple ways to improve your online currency trading.
1. Keep a dummy account
Do you have only one Forex trading account? Well, that may not be the best idea. It is always recommended to have at least two accounts: serious and a dummy one. What is a dummy account? It is a place for your dumb decisions. Typically, the balance of this account should be 10 times smaller than your regular account…and whenever you want to test your intuition or simply have a crazy idea for the trade – go ahead and do it on your dummy account.
2. Learn to let things go
A long-term investment is a short-term investment that failed. Heard of this one? Well, in every joke there is a piece of truth. Even the best traders take wrong decisions and it is of an ultimately importance to face the reality and accept that you made a mistake. Exit your losing trades, don’t keep watching the charts waiting for the market to reverse.
3. Know your shortcuts
Do you remember the times when you were copying and pasting with your mouse? Hopefully, those times are over and you are able to operate a PC at a much higher speed. FX trading is also a place where you do not really want to lose time. Hence, you should get a proper understanding of the shortcuts to analyse the charts quicker, and come up with faster decisions.
4. Release the stress
It is a great feeling to see your open position bringing you more and more profits. However, it is not that nice to see your account balance shrinking. Trading is certainly a nerves-tickling activity and you do have to learn how to release the stress. No, biting your nails is not the best idea. Get yourself a stress ball, learn to breathe deeply, have your favourite tunes on the background, exercise next to your trading station.
5. Treat trading as your business
You have to form an understanding that FX trading is just another type of business. It is not a hobby that you do on Monday and Wednesday evenings. It is not a gamble, where you open a position just to test how lucky you are today. Trading is something that takes both your time and your money, and you expect it to pay off great. Set yourself financial targets, know how much you can invest and what revenues you want to generate. Prepare a business plan for your trading activities and stick to it.
6. Write down your entry and exit points, plan them carefully
As we previously mentioned, your trading journey is a planned business. Yet each of your trades should have a mini-version of a business plan too. Come up with your vision upfront, place a trade, and stick to your vision. If you bought EUR/USD at 1.15800 and expected to to sell it at 1.16000, do so even if you now feel that the price may go even to 1.18000.
7. Remove the distractions
There are many things that can distract you from taking the right decisions – those are present on your chart and outside of it. If you don’t use the indicators or are not 100% sure how they work – don’t rely on them, and delete them from your chart. Are there people messaging you on social networks constantly? Logout from all of your devices during your trading sessions.
8. Reward yourself
Perhaps the most important part is to treat yourself well. Did you improve your winning ratio by a few % this month? Book yourself a day in a SPA. Did you exit all of your day trades as you were planning? Get yourself a nice juicy steak for the supper.
The aforementioned 8 habits sound quite easy to follow, yet many traders fail to successfully follow even half of those. We truly hope you will try out the tips above and will stick to them to make your trading environment, and hence your FX trading results, even better.