Many traders blame themselves or think of changing their strategy or get a new one when they are not getting their desired success. But they don’t realize that that they are going in the wrong direction. They need to combine their trading plan with their trading strategies. Here we will be discussing some helpful strategies which you help to earn profits.
There are multiple strategies in a trading plan and you need to go through each of the strategies step by step. If you make your strategies in a rush, it will not bear success for you. Once you find your strategy working then will get the confidence for making future strategies.
Set your risk limits
The first thing you should do after opening your Forex trading account is to set your risk limit that means you should decide how much money you are ready to lose in a day and how much you are willing to risk on each trade. You should not risk any amount that you are not ready to lose. Since you don’t know the result of the trades, it is better to start trading with the money that you can afford to lose.
Selecting the market hours
The best trader is he who focuses on the perfect trading time from a few selective markets. The Forex market, though open for 24 hours does not provide the same opportunity for trading for an entire day. If you want this best opportunity for trading, you should carefully observe the market when it moves high, then pick a time that is suitable according to your regional time zone.
Selection of the indicators
Next time when you open your trading platform, remove all the indicators except a candlestick or bar chart of your chosen market. Then, for the entire week, you need to observe the price action and study the volume patterns. Printing out the daily chart you should identify the points when the market starts moving and then identify several similar patterns. If you become successful in this task then it will be helpful for you to find out the time for the best entries.
Create trading rules
For a successful trade, you need to make trading rules which you should follow before every trading. In your rules, you can enlist the things which you must do and which you must avoid while trading. Look at this site and learn from the post of the elite traders. Try to mimic their style and develop a robust trading routine.
Things you need to remember before every trade
There are some important things you need to do before placing a trade as a part of your strategy. You should define your entry, stop and target when you decide to place any trade. This will help you to win the trade.
The calculation is very important to execute your strategy properly. Don’t think that your work is done after placing some trades. You should not stop here, rather analyze the data of your trade which will enable you to find out if your strategy worked or not. If required, integrate the Bollinger band indicator to your system to make things easier.
Keep your track record
Good traders always keep a record of their trade so that they can learn from their mistakes. And if you are planning to stay on the trading platform for a long time, then you need to develop this habit in you. Start keeping track of your daily winning and losses, daily and weekly profits, profit loss, etc. This record-keeping habit will help you to design your trade more perfectly in the future. By analyzing your previous mistake, you will find a way of not repeating the mistake.
If you want to become a successful trader in the Forex trading platform, then stop giving importance to your profit and loss, rather focus on your trading performance and your strategies. Before taking any trade, you should do your research and trade with low risk.