During my journey of trading and still on going there was some times that I thought I knew it all, I really did and even now sometimes that I am on a winning streak I would still feel euphoric and feel really good. Although it is natural and it is a really great feeling, it can also be a signal of immaturity in your trading and that is what I began to observe that every time I would do that, I would then start trading outside my rules. Which is why I know these simple forex trading tips will help not just novice traders but also traders that are advanced as well, they sure helped me and hope they also do the same for you. Here they are:
- Keep it Simple
- Focus on Risk
- Develop Patience
1. Keep It Simple
Often times when I was trading I kept on looking to be very sophisticated in my trading and trying to know numbers and news events and knowing if setups are going to hit where I said it was going to hit, or I was proud to know that the market moved to where I was EXPECTING it to go. It was all an EGO TRIP! As I became more cognizant I began to focus on what is happening NOW, not later, not if the market moved a certain direction according to my bias. I just stopped caring and began focusing on the opportunity that was presented.
2. Focus on Risk
As you know trading is a not a game that you leave to chance…NO! it is a business and you must become a professional at it. When I first started trading I noticed the endless gains one could make and only ended up losing more money faster because I was focused on how much I can make and not in protecting my capital. I began having a journal and a forex plan to write down how I started doing month in and out, it kept me accountable and aware of my trading. I do suggest you also have a plan and a journal, if you don’t, I highly suggest you grab a free copy of the FxST business plan, it is worth it!
3. Develop Patience
Developing patience is the highest form of trading maturity as well as one of the essential simple forex trading tips. As a novice trader I would take every opportunity possible, only to see that it was hurting my trading. I would either get stopped out or I would end up taking profits too quick. The way I developed patience was by becoming aware of the moment when I started feeling that I just had to enter into the market, or when I could just hear myself GET OUT!! you are going to lose your profit!