Foreign exchange markets are one of those areas where no two days are exactly the same. As anyone who has ever traded FX will know, no other financial market poses as many challenges or obstacles as Forex trading. It is a fascinating market that can be extremely rewarding at times but which can also be incredibly frustrating. This guide will outline the daily routine for all you FX traders out there and will help you to adjust your own lifestyle, so you have the best chance of being successful in foreign exchange trading.
All traders should have some idea of what life involves at their job, but if you are new to the game or haven’t been trading before, I would recommend reading this article. We all started somewhere, and there will always be something slightly different about your day-to-day, but there are a few things we can all do to make the daily grind a little bit easier. Below are my top tips for any beginner trader, whether they’re an experienced professional or just someone who wants to start out.
What you need to know as an aspiring or improving professional trader
Prioritize the action you want to take
Once you’ve identified the goal you want to achieve, it makes it much easier to stick with the plan and move forward. If you want to open up a Forex account, then that’s a pretty self-explanatory goal. You need to do it, right? However, if you are waiting for an order to arrive or hoping to see the price settle on another market pair, that’s obviously going to take priority, so try and set yourself some sort of time frame within which you want to achieve this goal. Once you’ve set that in stone, then you’ll have that much more of a target to aim for.
You can achieve all sorts of goals in Forex trading, from adding large amounts of capital to positions or even learning how to trade independently, but if you don’t know where you want to go from the outset, you’re not going to get anywhere. When you don’t know where you want to head, then you are likely to stop and ask, ‘what’s the next step?’ That could be a good question, but it’s going to cause you to lose out on opportunities if you aren’t careful.
Focus on the end-state rather than the process
One of my biggest issues when I first started trading was getting bogged down with the numbers. I had a tendency to spend hours studying the moves on the board to get a feel for which currencies were likely to perform well, and as such, it took me away from trading and towards the future in general. This is something that everyone in the business needs to be aware of, no matter how experienced they are. There are many people who will tell you that a forex trader is always doing their homework, but that’s not always the case. There are far too many inexperienced traders who leave their sessions feeling totally overwhelmed by the amount of information available at their disposal.
The mindset of a successful professional trader
Plan for the worst
Many of us are naturally adventurous and want to know what the day ahead holds. Although many people are prepared for the worst and usually take steps to ensure they don’t end up at the receiving end of any potential disasters, there are always going to be situations where they end up in an unfortunate situation. For example, a lot of traders will set themselves goals that involve going long or short a certain currency pair and expecting it to go up or down, but most times, it doesn’t work like that, and as a result, they make mistakes and get demotivated which brings us onto our next point.
Don’t be emotional about it
Emotions are a part of life, and a vast majority of us use them to help us navigate through our daily lives. Whether we realize it or not, we use our emotions as a way to cope with things, and by the end of the day, we often feel better and find it hard to explain why we didn’t have all the answers. This isn’t a bad thing, but it’s important for you to remember that there is no need to let negative feelings affect your trading. In fact, if you keep calm and stoic, you WILL see a drastic improvement in portfolio performance.
The main benefit of these lessons is that they make it easier for you to focus on the tasks at hand, and if you take these tips seriously, you will achieve a much higher success rate in the long term. Remember, it’s not about how hard you work; it’s about how much time you put in. Embrace every day like you’re an accomplished stock trader.