When starting to trade Forex , there are duet main steps to keep before expecting to start making money intelligently (ie relying on predicate and analysis).
The first step is to learn the basics of technical analysis and acquire the necessary financial knowledge to be in a position to assess the impact of the news and statistics. Once well informed, the trader can inaugurate practicing, but the rudimental purpose should be to learn and not to suddenly become a millionaire.
Beginner’s must have in mind to gain first the imperative experience, first with a demo account (for a limited time demo accounts are not always the best way to train , as we have already explained) and then practicing via real trading cautiously, with very humiliated positions.
To gain experience greater quickly when starting the actual trading, there is a grandeur tool: The trading journal.
What is a trading journal?
In short, it means to list all your positions in the forex market and their criteria. So you can analyze your trading to identify what works for you and what does not work, then influence conclusions and improve.
The trading journal can take multifarious forms, such as:
* A simple notebook meets style
* An excel spreadsheet
* A word document, etc.
What should you put in your trading journal?
The more detailed the journal is, the better. For completeness, we can add:
– Date and pace of entry into position
– Currencies concerned
– Size of the position
– Direction of trade (buy/sell)
– Stop limit
– Unit-time graph used
– Reasons for position
– Date and time install output
– Reason-position output (stop? Limit? Signal contrary? Blench error?)
– Review of the operation
– Free Comments seen that will help you improve
You may also include a screenshot of a graphical chart about your record and exit positions.
After wadding your trading journal, you can begin to analyze it.
The easiest way is to sort your trading paper is by losing also winning trades.
The then step is to find common ground between the winning trades including losing trades and find “winners patterns” plus “losing patterns”
* Maybe some type of signal that helped you succeed?
* Maybe for X oppositely Y reasons you always lose money on bout particular currency pair?
* When trading in the evening you may be doing widely better than trading in the morning perhaps?
* Your stops are often affected, perhaps they are too tight?
* You rarely conformed to your sojourn and your limits?
* The trades on the 5M charts nisi you succeed on the H1?
* Etc., etc., etc. …!
Besides the next step is simply to implement the conclusions of these observations: Emphasize on what helps you succeed and stop what is the cause of your losing trades. It’s as simple as that.
With this method, you desire refusal simply lose your rebate but equivalent you will learn from your mistakes. It is said that the losses are useful because they shape the experience, but if we do not analyze the losses and extract the appropriate logical conclusions, then we have just wasted our time and money for nothing. We strongly refer that you use a trading journal in your forex trading, especially if you feel that you’re still in the “acquisition experience trader” phase.