A FX trader needs to be a money manager. Properly managing your funds is very important in FX trading because if you cannot manage your funds, you are just going to give back every small profit you acquire back to the market. If you want to become a better trader and grow your account, you must know the right time to trade, when to place it and the right IRESS software to use. By saying this, it also means that you should also remain on the sideline if the time is still not right.
Patience and vigilance go hand in hand in trading for you to grow as a trader. Here are some important ideas to take into consideration.
One Trade Idea is Never Enough
How many times did you get stuck with only one trade idea? You traded EURUSD and thought that everything is in your favor. But the next morning, you woke up with an alert stating that your stop loss has been triggered. This can be the most devastating wake-up call. Last night, everything was perfect but you woke up and everything became utterly chaotic.
The next day, you decided to do the opposite strategy. But it seems though, the market is playing with you, opposite results from yesterday came in. Then you found your account losing 20% of the previous amount.
The lesson that you need to learn in this scenario is very simple. After a loss trade, take a break and stay on the sideline for the next 24 hours. DO NOT do revenge trading. By staying away from the market for the next 24 hours, you are keeping your ego from interfering with your trades. Collect your thoughts and focus on your trading plans.
Consider The Long-Term
Trading is a continuous process and not a mere project. Trading has no end. Because of this, you need to continue learning. You need to understand why you had a losing trade and why others effortlessly earn their profits in every trade that they venture. Rushing things will only make things worse. The learning curve in trading can become a lot steeper if you slow things down and take it one step at a time.
That is why many people get interested in trading. There is no one who can boss you around and no deadlines to meet. You just have to focus on your trades and learn new things every day.
Don’t Be Afraid of Losing
Losses are something you cannot avoid in FX trading even if you use an IRESS software. Also, when it comes to trading, your judgment is always compromised. No matter how long you have traded, your capital at risk will always influence your decision making. If you think that you are starting to feel the fear of losing on your trades, you may stay at the sideline and think things out. Since you don’t have open positions, your mind will become free from all sorts of distractions. You can then think properly and create a judgment with a sound mind. Do not let your emotions cloud your decision in trading.