1. Don’t trade based on emotions. Fear, hope, anger, excitement will all lead you into doing things that are not very smart. You might make some profit once or twice based on a gut feeling but in the long run this is a dangerous way to trade. Always value reason above emotions and feelings in trading.
2. If you have found a good strategy that seems to be working for you, stick to it. Don’t change your approach every other day. It will make it very difficult to trace your performance and then improve on it.
3. Maintain a trading journal. You have to be able to see how you have improved over the years. Another useful thing you can do with this journal is to not just write the numbers and wins and losses but also include a small analysis of how you think you did. This will also help you improve your analytical skills. Taking the time out to reflect on your performance and trying to make sense of your actions will teach you a lot about how you are as a trader and what your strengths and weaknesses are. Self-analysis is very important in trading.
4. Put in the hours. Treat trading like work. It is not a get rich quick scheme and it shouldn’t be treated as such. You have to invest time and energy into this business to make it work.
You can read up more about forex trading here if you want. There are some good tips and tricks and also great explanation on the basics of forex trading that can come in handy.
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