Despite the new year now being well and truly in full swing, for many, the running shoes still haven’t come out of the box, the cigarettes still haven’t been put down and the pub has still been frequented every weekend – you can always try again with your new year’s resolutions next year!
But here at Learn to Trade, we like to think that you guys have a little more self-discipline than that – its a key trait of any successful trader, after all! With that in mind, today we’re exploring 3 resolutions you can apply to your forex trading this new year, helping you perfect the skill of how to trade forex the right way.
Start letting your winnings run
Perhaps one of the biggest errors made by rookie forex traders is cashing out too soon. Sure, it can be exciting to see a profit, with the natural reaction being to take your winnings and run (especially if you were a little too free with your cash spend over the festive period). But the fact of the matter is, if your position has been successful, there’s often more money to be earned – and the most successful forex traders have the ability to identify when this is the case.
For example, although a trader who closes their position within 5 pips can pat themselves on the back for a job well done, if the trend continued for another 50, 100 or even 200 pips, then the reality is that there was a lot more money to be made. As such, look to start being a little more daring on the market this new year (if your financial stability allows for it, of course), letting your winnings run in the chase of more profit when the charts and indicators point to this possibility.
Learn the market inside-out
It probably goes without saying, but to succeed on the forex market, you’ve got to really know the forex market! So with that being said, why not make your new year’s goal to ensure you’ve really learned about every corner of the market inside-out?
From signing up to a forex trading course to utilising useful online resources and keeping up with the latest in forex news, find which way you learn best and begin setting aside a set amount of time each day. Whether you need to spruce up on your knowledge of theory, analysis, technique or operations, identify your weak spots and look to strengthen them in order to be in the best position possible to make well-informed, prosperous trading decisions this year.
Stop being greedy
Perhaps one of the biggest enemies of a successful forex trader is greed. Although we’ve spoken above about being more daring with your trades, it’s important that the line between risk and greed is always understood (which you’ll better comprehend after practicing resolution #2 – you see, we’ve really thought this through!).
Of course, we’re not going to sit here and tell you that this year is going to be full of infinite profits. On the contrary, even the very best of forex traders will incur regular losses. The trick is, however, to accept these losses as losses and not try to recoup them by making illogical, high-volume and, subsequently, emotive trades. Likewise, while it’s all very well and good being on a winning streak, it’s vital that you don’t get carried away by opening higher volume positions inspired by overconfidence. Either of these practices have the potential to have drastic consequences on your finances and as such should be readily avoided at all costs to ensure your trading stays safe and fun this new year.
This new year, ensure you’re following best practice to really take your forex trading journey to the next level. For more information on how Learn to Trade can help you on your way, why not get in touch with our friendly team of trading experts today?