As I was planning to trade the currency markets today I followed my regular pre-trading routine. I follow really the same routine each day and it allows me to become more prepared and proficient as a trader and as a businessman.
As part of my Forex strategy trading hints I would like to share with you a checklist that every Forex trader should use in order to be more profitable, more organized, and boost your return on investment.
Check your open trades and track their 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 several 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 undoubtedly applies to spot trading.
Study the market before you place any brand new trades: I cannot stress enough that you need 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.
What's more, you will be hitting your head if you see something 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 Fx trader than a fundamental spot trader; nevertheless, I still try to stay up to date in what is going on all over the globe.
One of the resources that I employ to analyze the fundamentals of the foreign exchange market is the news calendar. A news calendar provides you with an overview of all the important events that are happening in the internacional economy. A number of them also tell you the expected influence that each specific news event will have on the currency market.
Check your risk, stop loss, and tale profit variables: little things can make a big difference in FX trading and minor mistakes can produce large losses. This is the reason why I always check my risk, take profit levels, and stop loss levels. That’s the only way for me to make sure 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 a decision to include this one as part of the Forex trading checklist because I have seen a number of traders lose money this way. We are all human and we will commit mistakes from time to time.
One of the most common mistakes traders commit is taking a trade by mistake. I have done it and all pro Forex 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 secrets please check back frequently as we post several times every week.
Useful post. I am glad that you have made such an excellent checklist which a Forex trader can use to earn more profits and also can boost the return on investment. I really enjoyed this article.
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