Trading is all about who you are? It is very indicative of you as a person and indicates the basic characters in you. It’s about knowing yourself, knowing to take decisions and to stop when required. You can always change, learn and know what to do before, during and after a trade.
There are few tips that you can learn from, and be prepared mentally.
What should you do before a trade?
Before you start the trade, you need to prepare for the trade. Mentally you need to understand the risks and know that losses may occur. The right mindset needs to be attained before the trade. Use forex technical analysis and forex news to understand the positions. Calculate the logical stop loss placement. Here again be careful do not overestimate, the stop loss needs to be strategically placed. Another point you need to accept is that the trade will take time. Do not sit and watch every slight fluctuation, it would only
What should you do during the trade? lead to premature uncertainty and incorrect decisions.
If you have prepared and done your research, and set predefined levels on when to react, then only when the market reaches that point should you react. Ignore the slight fluctuations. Make a routine, a frequency to check on your trades. Wait for the whole scene to play out. Do not make hasty decisions based on sudden variation seen. Keep a tab on the forex news and the forex technical analysis in a regular basis. Make a decision only when it is inevitable to do so.
What needs to be done after the trade?
The trade is complete, you cannot change it. You need to take time, relax and unwind. The outcome of the trade needs to be put aside while deciding on the next trade. It is harmful to be overconfident about a successful trade. You need to take a step back and start from the beginning again. You need to prepare for the trade, forex technical analysis and the forex news should always be available at all times. If the trade has ended with losses, you need to take it in your stride. Losses do happen and it is a lesson to be learnt. You need to re-evaluate on what could have gone wrong and which step could have lead to the loss. The most important point to remember is, not to panic and think of only the loss. You should be practical and understand the reasoning behind the loss.
Your attitude is your key to success. It is not possible to be a successful trader if you do not prepare before the trade. Utilize the experience and knowledge of information available, plan wisely and then trade. You must be calm, in control and always alert before, during and after the trade.