In Forex, a trader must follow some rules as well as some rituals to avoid bad results in his trading life. As the most important point, patience is what we should practice from the very beginning in Forex trading. When entering to Forex trading, one must create a Trading plan according to his capabilities and knowledge.
Basics in a Trading plan
- Trading Instruments
- Forex signals you are aware of and how they influence you in trading
- Minimum and Maximum duration of your trades
- Number of trades you encounter(handle) with during a day
- Time you spend in trading per day
A trading plan makes a trader safer among gamblers and tricks out there in the trading field. Most of the traders who involve in trading do not learn what actually Forex is. That brings them losses because they cannot handle it with their limited knowledge. To avoid such incidents, one must learn and understand Forex up to a greater level. Understanding Forex and its surroundings make it easier to develop your own Trading Plan and check whether its profitable or not before you go live.
Emotions in Play?
Disciplines in Forex trading make you stable, fearless and confident in any situation you face while trading. As mentioned earlier, when creating your own Trading plan, take time to test it in every way you feel using demo accounts. Patience helps you to avoid your own mistakes in trading plan. Emotions always fail you in Forex.
To be a great Forex trader you must handle your eager and greed to money. You cannot earn money within a short period of time. Work slowly and patiently until you feel confident about your plan. Never trade with money that you cannot afford to lose. If you lose your money, it makes you feel frustrated and the emotion triggers, tries to destroy your trading plan.
When dealing with real money, a trader must control all emotions like greed and anger, fear to lose money and getting anger due to loss. Start trading using a well tested own Trading plan to earn profits from very small amounts to a higher level with the time.