Good athletes all have a certain god given gift for their sport. However, the best athletes work hard to improve and perfect their trading in a methodical and incremental way. They focus on working to improve even the smallest weaknesses – because in a heated, do or die situation – it’s the 1% gains that can be the difference between victory and defeat. It’s much the same for your forex trading – even the smallest tweaks and improvements to your mindset and process can turn you from a so-so forex trader to a pretty good one. In this article we examine some simple ways to improve your forex trading.
7 Simple Ways To Sharpen Your Trading Skills
1. Get A Good Nights Rest. Top athletes never stay up late the night before a big event. As a forex trader, each trading day is your big event. A well rested mind is a sharp mind that will be better able to pick out good trading opportunities that arise during the session.
2. Eat. Never trade forex on an empty stomach. Hunger is a distraction, and one that you can ill afford to court when the markets are open and gunning for your equity.
3. Develop A Set Schedule. Routine is a good trading habit to cultivate. This is as apt for part time traders as full time ones. A set routine means you spare some time for your pre-trading analysis (before the main session you plan to trade opens), as well as ample time for trading and a review of positions. Finally, a good schedule will allow for some extra knowledge to be gained through study.
4. Keep Learning. Good forex traders have an almost insatiable desire to keep learning. They know that every new snip of information acquired will be contributing to raising their overall status as a trader – and that knowledge will at some point come in handy. Also paw through some of the basics now and again – it’s always good to have a refresher course so you don’t forget key information.
5. Learn To Develop A Trading Conducive Outlook. The more you trade forex, the more you come to realize it’s all about your own mind. The volatile nature of price action can play havoc with our psyche – there’s a real battle of wits going on between the bulls and the bears, and it never stops. A good trader will create their own coping mechanisms to deal with the psychological ills of fear, greed and frustration when they arise.
6. Visit Webinars. Many websites offer free webinars on trading tactics. Some will try to sell you something at the end, some wont. If you have the time, it can be worth visiting forex webinars to see how different traders approach the markets. In much the same way, sign up to high quality forex trading newsletters and blogs, and keep an eye out on what’s being rabbited about on the forums. You don’t always have to apply everything you hear, but it often pays to keep an open mind and try things out for yourself (if only in a practice account)
7. Learn More About The Currency Pairs You Specialize In. Currency pairs all have their own subtle nuances. By studying them, you can know which times of the day they typically release most of their pips into the markets, as well as which ones follow each other closely (important for risk control purposes).
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