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5 Tips to Make You a Better Forex Trader

5 Tips to Make You a Better Forex Trader

It doesn’t matter if you are a 10-year Forex veteran or someone who is just starting to trade in this fascinating market – you want to be better. If you are not, you should be. Only if you constantly strive to be a better Forex trader than the day before can you hope to survive and make money by trading. The following tips will help you do exactly that, become the best Forex trader that you can be.

1. Keep Learning

When you just get into Forex, you spend a whole lot of time learning. First you need to get a grasp of the basics. Then you learn the lingo. Then you start analyzing various strategies and learning from successful traders. Then you start learning from your own experience.

And then… you stop learning.

After a while, many Forex traders start thinking that they have learned everything there is about the market and the best practices. They become settled in.

This is the beginning of end, simply put.

The foreign exchange market is an infinitely intricate ecosystem which is evolving at an incredible pace and the moment you stop learning, you are behind. Do it for more than a few weeks and it is highly likely that you will have troubles catching up.

It’s not impossible, but why risk it?

In short, always keep learning. You cannot afford not to.

2. Keep a Journal

It is not a secret that many Forex traders keep their own trading journals, but for some reason, many traders choose not to do it. Sure, they keep some record of their past trades, but it is rarely as organized and as structured as it should be.

There are innumerable reasons as to why keeping a Forex trading journal will be good for you, but the most important one is that it will help you notice patterns that you might not notice otherwise. After a number of trades, you will start noticing the flaws in your market analyses and various actions that you take. You will also start noticing the good things that you have been doing with your successful trades.

In short, keeping a trading journal will provide you with a uniquely combined set of data that consists of outside numbers and your own, personal data.

3. Talk to Other Traders

One thing that is almost bafflingly absent from the majority of Forex community is honest, open discussion between traders. Sure, there are certain details that no one is prepared to share, but there are just as much trade talk that can benefit everyone involved in the talks.

These may be discussions about various tools or some general practices that certain traders have found beneficial.

You might find that reaching out to other traders is a bit tricky and you might feel discouraged after a while, but it is just as likely that you will encounter a couple of more open traders who will be glad to exchange certain findings.

The main thing you can get from this is expanding your views on Forex trading, which can get quite myopic due to the individualistic nature of trading.

4. Keep Your Options Open

Some traders, especially those who have been doing it for a while, get set in their ways. They will stick with their broker even when better alternatives spring up. They will stick to a single currency pair even though switching up might actually help them make money. They will keep using the same, proven tactics even though changing them up might improve their outcomes. They will feel apprehensive in face of exciting new possibilities such as social trading.

We are not saying that you should suddenly become erratic or give up on your tried “classics”. We are simply saying that you should keep your eyes open for new options and solutions.

5. Control Your Emotions

Forex trading can be volatile and when this happens, the crucial thing to do is to keep your emotions in check. Often times, you will feel absolutely overwhelmed by anger, despair, exhilaration or elation.

And this is perfectly natural.

You will feel certain emotions.

When you must never do is allow the emotions to take over. The same goes for superstitions and hunches, whose calls are often almost impossible to ignore.

Never trade unless you can explain to yourself your decision using nothing but data.

 

 

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