Trading techniques that can work for you

Author: Forex Live | Category: Education

A look at the simpler things you can do to help your trading

A look at the simpler things you can do to help your trading
Trading like anything else is about practice, reps, routine, and goals. Without any or all of these things it is difficult to be successful in your trading. Complicating this process slightly is the influence of other factors as well, namely emotions, a desire to make profit, and expectations.

For these reasons, it's important not to get too caught up with any one specific goal or expectation, as this is when mistakes and losses can happen. When trading with an effective balance, emotions such as fear, ego, greed and revenge trading are practically non-existent.

Only then can you manage to be the best trader you can be and achieve a level of success you are likely looking to pursue.

Take your trading to the next level

The bitterness of reality

Unfortunately, axioms and motivational speeches can only get you so far. Once your money is on the line, even an individual who has had months' worth of consistent returns could easily choke or experience losses when they go live. So how can you practice to become perfect?

Keep calm and trade

Not all markets are created equally and some are certainly more volatile than others. For example, classic markets such as oil, exotic currencies, and cryptos are all classified as highly volatile.

While the term carries a negative connotation, volatility can actually benefit experienced traders and some strategies. For example, without any volatility, there would be little chance of making any profits at all, the challenge is finding an acceptable level of this force.

By extension, there is a lot that can be gained by simply trading on less active markets. Rather than being priced into big decisions, you can instead gain a valuable chance to analyze and act without the pressure of constantly fluctuating price movements.

Furthermore, another benefit of trading across more subdued markets is that that less volatile markets tend to move less, so if you are the wrong side of a trade, you stand to lose less than if you were trading on a volatile market.

Learn from your mistakes

Everybody makes mistakes, that's why they put erasers on pencils. In the world of trading, mistakes - or more specifically losses - reflect a valuable opportunity for growth and learning. This is why such setbacks are important for growing as a trader.

A good practice is also to keep a trading journal, complete with a log of all the reasons that lead you to opening a certain position. This can include the fundamental or technical data that informed that trade.

Understanding your thought process in any given time is the best way to make sure that correct and informed decision-making was rewarded and a lack thereof was met with losses. Traders that have routinely found success have managed to find the winning formula through trial and error so it's ok to make mistakes.

Experience through setbacks

Being mentally tough comes from experiencing losses. A trader who has never known adversity is unlikely to even know their own limits. Rather, most of the negative emotions that traders experience is associated with losing.

Ultimately, experience will teach most traders that losing is part of the game. To stay viable and sustain your account, you must look at the big picture and not focus on individual losing trades. You can still be successful even after incurring losses so long as you learn from them and improve.

Do not let even the smallest setback deter you from learning as each instance of success or failure is a valuable opportunity for growth.

A break from the monotony

Many traders like to approach their craft full throttle but it's also important to space in breaks periodically. It is completely reasonable to become burnt out en route to grinding out gains, and thus it's crucial to understand your own limits and need for a respite.

Much like other professions, the advent of recuperation and recovery is a time and tested strategy to ultimately improve and condition yourself. Trading is no different and if you are fatigued, winded, or tired, then your body is telling you it's time for a break.

Some professional traders say that after three consecutive losses or wins they will stop for a moment and take a walk. This can help take you separate yourself from any trade emotionally and avoid any level of impulsiveness that can lead to even greater losses.

- This article was submitted by UBCFX

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