, ❗️Draw or have a working trading plan and STICK TO IT. Stop letting emotions ruin your trading plan. Stop seeing other people's results and feel some type of way and deviate from your initial plan. Once you set a plan, you see it through, you don't change it mid trade because that's where the chaos starts. Do this:
*Know the type of trader you are (Swing, scalper or intraday trader) so your plan can align with your profit/loss target.
*Know your risk and reward ratio. Risk management is important, whether you use stop loss or not. You need to know how much you can afford to lose per trade as much as you know how much you are willing to gain
*Trade high probability setups. Don't just trade because you have funds in your account. Trade to make more profits than losses
*Merge the above mentioned factors with your strategy. Know your entries, stop loss, and exits. Also know when to trail your profits.
*Be patient. If the market has not conformed to your analysis, don't rush entries. Many traders are killed by the fear of missing out (FOMO). It's a very dangerous thing to do and will mess up your trading plan and results.
*Leave emotions out of trading. Emotions like regret because you closed too soon or too late on your previous trade will affect your current trade and potentially cause confusion
*Always keep in touch with your charts. This helps you learn and increase/modifying the accuracy of your strategy. The more you learn, the more confirmations you have to enter a trade in a specific direction.
*Record your trades, more especially your losses. This helps in improving and modifying where necessary.
*Accept losses and learn from them. Even when you have mastered trading or are a professional, there will be a point(s) where you will encounter losses. Having a good strategy doesn't mean you won't lose anymore. When that losing point comes, don't revenge trade, it leads to further losses. Sitback and take in the loss, but don't dwell on it. Clear your mind, go to the drawing board ,and get back to those charts.
*READ, watch or do anything to gain more knowledge. Don't be lazy to read or watch educational content. Focus more on education than on entertainment.
*Trade and withdraw some of your profits. Don't reinvest all your returns unless your bank balance is very fit. If not, withdraw your profits and grow the remaining balance.
*Don't switch your trading plan on a daily basis. Stick to a particular plan for an extended period so that it ends up being habitual. As time goes on upgrade it as your knowledge and skills also upgrade. Your bank balance will automatically upgrade as well.
*Don't count the trades, make the trades count. Don't fight to trade everyday because you'll end up forcing setups and getting many false signals. Rather be patient until your watchlist pairs have confirmed to all your requirements and then you enter. Most successful traders are the ones who take few high probability trades, than many low probability trades. They are also usually long term traders. They enter upon strategy confirmation, not emotions.
*Don't trade with borrowed money or money which you can't afford to lose. Trading profits aren't always guaranteed. Don't land yourself in deep debt because you thought that the next move stood a 100% chance to give profits. There's no 100% in trading. Always leave room for failure. Take calculated risks so you don't become a gambler in the markets.
*Past results aren't a guarantee of future performance. Just because you lost in the last doesn't mean you'll lose in the future. Same applies to Profits. Trading carries risk. If you aren't prepared to take it. Don't trade.
*Don't use trading as a solution for short term problems. Trading is meant to be long term career and goal, which is why successful traders are measured by long term consistency. You can't achieve this if you are trading for extremely short term needs. Trading is not a get rich quick scheme. It takes 4 years for the average trader to start being consistently profitable.
Past results aren't a guarantee of future performance. Just because you lost in the last doesn't mean you'll lose in the future. This is very important to note in FOREX bro