Things to Do Before, After and During Forex Trading
It has been experimented that most forex traders begin their forex trading with a completely wrong mindset. It has been noticed that not only the novice traders, but also the experienced traders focus on the wrong things from the beginning to the end of forex trading. As a result, the trade ends with losing money.
The foreign exchange market or the forex market is the largest and most liquid financial market in the world. This market is highly volatile, as more than 3 trillion dollars are traded everyday in this market.
This article can act as a mini tutorial for you on what you should do and think before, during and after the forex trading. This may clear a lot of confusions from your mind about how to trade and get profit in the forex. You should be mentally as well as physically prepared and maintain a forex trading routine before you enter a trade, during the trade, and after the trade is over.
Things to do before you enter a forex trade-
Once you have set up your mind to execute a trade by spotting a high probability of price action trading set up in the market, you should keep some pointers in your mind and act according to them.
Place your stop loss after calculation. Never place your stop loss based on your greed. Place your stop loss strategically- you should never place it too close to your entry in order to trade a bigger position size.
Accept the fact that you may lose the trade. Always be mentally prepared that anyone can lose a trade, and you are not exceptional. It actually does not matter how confident trader you are, you can end up losing. If you accept this fact, you can be more confident and comfortable while trading.
Spend more time on research. Always take more time to research and less time to execute trades. Never be in a hurry to execute a trade. You have to understand that your trade requires some time to work before you execute it. Basically, this time you need to be prepared to do nothing.
Things to do during the forex trade:
During the trade, most people sit and stare at their trade for hours in order to watch the charts execute the trade at the right time. This is really unhealthy; they should have proper trading regiment such as going for a walk, getting some fresh or whatever helps you to relax. As traders, you time spent in front of your trading area will vary depending on you objectives. But you should always find a way to stay mentally fresh throughout your trading.
Never leave your goal. Always stick to your trading plan. Discuss and mentally rehearse making the correct decision and following your trading plan to a tee.
Things to do after the trade is over:
The very first thing that should do after the trade is over is to relax for a while. It does not matter whether you won or lose the trade; all you need to do is to chill. This will help you to be fit mentally.
In case you lose, take it as a game. Think for a better trade next time. Learn what your mistakes were. You need to learn from your mistakes and make sure that you do not repeat it again. Don’t breakdown emotionally. Most importantly: Keep a Trade Journal.
If you have won the trade, don’t get too overwhelmed. Be normal and try to note down what strategy you used that time. Try to follow the strategy in the next trade.
This is all apart of improving (and mastering) your trading psychology. Here are some tools that can help expedite the process:
- Trading Hypnosis
- “Trading in the Zone” by Mark Douglas