Every new year, traders get a reflection on their past year’s trading outcomes and results. This always presents you with the opportunity to improve your trading skills and excel in the new forex trading year.
Despite how long you have been trading, it is crucial to write down your forex goals and commit to them throughout the year. If your trading knowledge and skills did bring any results in the previous years, you need to modify your existing trading plan. Here are some tips to help you dominate forex trading:
Take time to master one chart pattern or trading strategy
Forex traders try to focus on a handful of trading strategies at a go, which becomes counteractive. We recommend focusing all your energy on trading and studying one single price action pattern or signal.
To excel in trading, you should aim to be the master of your trading setup. You should own it and make it yours by mastering the chosen trade setup. This will help you achieve great success over more trades if you decide to master a different price action pattern or signal.
It would be best if you also fought the temptation to either chop or change your trading strategy always. Be disciplined enough to commit to a single idea and focusing on it religiously to successfully see it through.
Spend more time learning about trading
Forex traders spend most of their time trading instead of increase time to learn about trading. The obsession to spend roughly 14 hours of your day watching your phone or computer screen, watching open trades, watching for new trades, or entering and exiting trades makes traders lose control over their emotions.
Anyone can get addicted to trading if you spend all your free time checking the charts and watching open trades. This is how new forex traders destroy their trading career and their trading account balance.
We recommend spending one or two hours a day to analyze your trading charge and carefully think about what trades you intend to take, the orders you plan to place, and manage your open trades. You will never achieve anything if you watch trades or markets without control over what the market is doing.
Perceive trading like watching paint dry the entire time. Approach the market without looking for action or excitement because you will not find it there.
Avoid recency bias
Most forex traders, especially beginners, believe that what is happening on the charts now or what has happened in the past will continue in the future. This is what we call recency bias. This is best seen when investors or traders become entirely convinced that a particular trend will continue for the next few years when they notice a stock market has been trending up for a few years.
This is classic human behavior. We tend to believe that whatever is happening in the present will simply continue. We do this without looking for evidence to this view or considering the possibility of a different outcome.
When you become too confident in a trend, you start acting as though you are invincible, which only increases your risk to excessive levels. If you become too overconfident, you will completely forget your trading plan and the predetermined rules for trading.
For the best forex trades to find you, you need to be patient. To make big moves and experience big risk-reward trades, we recommend holding your trades longer until you start feeling stressed or uncomfortable.
It is best to let your trades play out and mature for you to bear fruits. Dominating forex trading means that you don’t harvest your fruits before they are ready and not panicking during spells of bad trades. By slowing down, you will avoid churning your account. There will also be fewer chances of getting addicted to trading.
It would be best to constantly analyze what you have done right or wring over the past years to create a list of goals that will help you dominate the platform. Anytime is always the best time to take stock of what you have done right, what you could be doing wrong, and trying to figure out how you will improve.