As I was planning to trade the Forex market today I performed my regular pre-trading routine. I follow precisely the same routine day after day and it allows me to become more organized and productive as a trader and as a businessman.
As part of my Forex strategy trading suggestions I would like to share with you a checklist that every spot trader should use in order to be more productive, more organized, and expand your return on investment.
Check your open trades and track their overall performance: This should be the first step you take once you get to your computer. Check all of your open positions and
track their performance.
In plenty of occasions stop losses need to be moved to break even or you want to take profit early because of an incoming event (such as non- farm payroll). One of my mentors once told me that “everything that matters should be measured”, this undeniably applies to spot trading.
Analyze the market before you place any new trades: I cannot accentuate enough that you have to analyze the market before you open any trades. When you are in a trade you are not the same. You are thinking about the trade all the time and you are more likely to make non-sense decisions.
On top of that, you will be hitting your head if you see a problem in the market that creates a conflict with a trade you already took.
Read the news or read a news calendar: I am most of a technical Forex trader than a fundamental trader; nevertheless, I still try to stay up to date in what is going on all over the world.
One of the resources that I employ to analyze the fundamentals of the currency market is the news calendar. A news calendar provides you with a list of all the important events that are happening in the internacional economy. A lot of them also tell you the expected influence that each specific news event will have on the Forex market.
Check your risk, stop loss, and tale profit variables: minor things can make a enormous difference in foreign exchange trading and diminutive mistakes can cause extensive losses. This is the reason why I always check my risk, take profit levels, and stop loss levels. That’s the best way for me to guarantee that that everything is working properly and that I am going to meet my trading plans.
Never let a small mistake become a large loss: I made up my mind to include this one as part of the Forex trading checklist because I have seen countless traders lose money this way. We are all human and we will make mistakes from time to time.
One of the most typical errors traders commit is taking a trade by mistake. I have done it and all pro foreign exchange traders have. This is not that big of a mistake unless you let run and become a larger loss. My advice to you is that if you ever take a trade mistakenly close it immediately, never let a small mistake turn into a big and unnecessary loss!
I Hope you enjoyed my Forex strategy trading tips and hints please check back regularly as we post several times every week.
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