Are you finding that you're just not quite getting the results you wanted from trading Foreign Exchange or FOREX?
Are you still struggling to get a bit of a boost to your account?
There
are many easy ways to improve your FOREX trading. Most of them are
fairly generic in that they apply to trading in general. The thing is
that being human, we tend to let our emotions get in the way and we know
that if we traded like machines, we'd probably get better results.
Let's go through some of the more obvious things you can do.
Have
you got your trading plan sorted out yet? Does it specifically tell you
how you put on, manage and exit trades? What the trade time frame is,
what currency pairs you will consider trading.
Do minimise your
risk on every trade. If it's going to cost you 20 pips to get it wrong
and there is only a target of 18 pips in the trade, then it's not worth
the bother! Keep your reward to risk ratio to at least 1 to 1, even
better if you make it more like 3 to 1.
Have you recorded all your
trades and updated your stats from them? For me, this is the most
exciting bit of trading. Every month end, I analyse my trades to see
where the money came from (or got lost to). I know what currency pair
made me the most money, what type of trades were the best ones and also
what were the worst.
Remember that your losers give you the most useful information because they teach you what to avoid doing!
Do
watch the market news. I don't mean spending hours of TV watching, I
just look at the daily news releases and make a note of what time they
are so as to avoid trading at these times. I know some of us like these
volatile moments in trading, but my plan is more conservative and safe.
Don't
be greedy! I'm quite happy with getting only a 10% or 20% move in a
trend, it's better than nothing at all. Don't try to get 100 pips every
time. This attitude will lead to overtrading and certain losses. You tend to learn this one the hard way though!
Don't
use too many tools and indicators on your charts. Simple is better.
Don't get analysis paralysis! I use just one indicator, the RSI.
It's
these obvious things that we tend to ignore that reduce our trading
performance. You've just got to be really honest with yourself and ask
whether you do them or not.