List

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.

Slow down

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.

In Conclusion

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.

  Posts

1 2 3 9
April 25th, 2022

CFD guide for dummies

Let’s get started with the basics of what a CFD is. In your typical stock market, shares are bought and […]

March 16th, 2022

How to use the Elliott Wave Theory in ETF trading?

The Elliott Wave Theory is a sensational trading tool used for all markets. Traders familiar with Elliott Wave or who […]

February 10th, 2022

Buying and Selling Cryptocurrencies Via an Australian Exchange

Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and control new units. Cryptocurrencies are decentralized, […]

February 7th, 2022

What is the HODL strategy, and how to use it?

We all know that cryptocurrencies are highly volatile. But there is a strategy we can use to limit the downside […]

January 27th, 2022

Swing trading in forex

What is swing trading? Swing trading is a form of active trading where the trader only keeps an open position […]

January 12th, 2022

Advantages & disadvantages of CFDs

  What are CFDs? CFD stands for contract for difference. A CFD is a financial instrument that allows you to […]

December 23rd, 2021

Why is it essential for stock traders to have a healthy mindset?

Some would argue that making money is the most critical aspect of a successful career. Others would say a healthy […]

December 8th, 2021

How to start trading stocks: Beginners guide

Before you even begin to think about trading stocks, there are some things that you must first consider to avoid […]

November 10th, 2021

What Are Advanced Forex Trading Concepts?

You can trade forex using algorithms or some other advanced concepts. Forex might seem easy when you start, but it’s […]

November 2nd, 2021

All about options trading

Options are contracts that give the buyer (taker) the right to sell or buy securities at predetermined prices before or […]