Kick off the new year with better trading habits

Kick off the new year with better trading habits

Out with the old, in with the new!

Had your ups and downs in 2014? No fret, a new year is a chance to wipe your slate clean and start fresh. So while you plaster your walls with encouraging “I can do it” stickers and dig through your wardrobe for your dusty gym shorts, here’s what you should be doing in the Forex scene:

1. The past is not really the past.
1.The-past-is-not-really-the-past
Analyse your past mistakes as well as other closed trades (its winners and losers) and make up a detailed journal: brainstorming and dairies are old school, we know; but there’s a reason why we still use them: it helps you look at what worked and what failed. Through these, you can manoeuvre your action plan towards the right direction, and better it will also make sense of the Forex puzzle.

2. Attitude, attitude, attitude!
2.Attitude,-attitude,-attitude

It’s something we prize over experience or knowledge because it will dictate your reaction, the decision-making process and your mindset. Though the generic advice is to separate emotions from the tables, we know that’s absolutely impossible; so instead of dividing them apart, try to control them and take a breather before heading back to the game. Remember: money lasts longer than hate, love or greed, so win them over with a solid action plan and keep a positive attitude!

3. It’s all about discipline, baby
3.discipline
Kill the social media browsers, unplug the phones, put the kids in daycare for the afternoon, spend one romantic hour gazing into the charts (some soothing music is allowed) and always follow your trading plan. If you lose focus and don’t follow that logical voice in your head, even the most brilliant strategies will go to waste.

4. Find the right toolbox
4.toolbox
Make sure you have a reliable platform, a suitable charting system and stable internet connection if you don’t already do! (duh)

5. Patience is the father of all success
5.Patience
After you think you’ve mastered points 1 – 4, re-evaluate them before diving into the market: does your action plan work? Are you ready for the Forex monster again? If your answer is a stern “yes”, keep in mind that patience is the key when dealing with each challenge the volatile market throws at you.

6. Don’t force it
6.force
If you find yourself squinting at the charts or ignoring market conditions, you’re in it to lose. Listen to what the markets are saying, take impulse trading, force trades – and more importantly revenge trading – out of your books. Slow and steady always wins the race.

7. Last but not least: build confidence
7.confidence
Take responsibility for every move you make and man up to your trading decisions. You failed or you won for a reason: learn from it, understand what happened and what you can do to avoid/duplicate it again in the next trade. Learn to trust yourself – it makes the difference between a successful and a failing investor.

 

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