Yes, strategy is vital but having a profitable strategy is not the only part to make profitable trades.
What makes you a good trader is the executions that you make, and we have noticed that many people struggle on that part. If that is, you then below tips will be really useful.
Every trade is a battle and winning battles requires preparation. Since uncertainty is the only thing that’s certain about the markets, you should learn to identify the possible scenarios and prepare contingencies for them. Having plans for every likely scenario increases your chances of closing your trades without losses.
"Every battle is won or lost before it’s ever fought"– Sun Tzu
Make Mistakes and Learn from It
The best way to learn about the trading game is to play it. You can read millions of books, sign up for classes, and talk to a mentor for hours and hours and you still won’t be as skilled as someone who went ahead and made his first trade.
You must jump in the pool and make your own mistakes if you want to learn about the market that you’re trading. Your experiences will not only ensure that you don’t repeat your mistakes, but it will also make you trust your own judgement over the others.
“The game taught me the game. And it didn’t spare me the rod while teaching.” – Jesse Livermore
Money Is Secondary – Go for Best trades
Trading, like any high-performance endeavor, requires skill, focus, and discipline. Those who are in it for the money alone aren’t likely to focus on the process of being a good trader. Concentrate on being a good trader and the money will follow.
“The goal of a successful trader is to make the best trades. Money is secondary.” – Alexander Elder
Every Day Is a New Day
Every day is a new day for Forex traders. Just because you’ve been winning trades for the past few days doesn’t mean that your next trades will also be winners. The result of your past trades, whether they were winning or losing ones, shouldn’t affect how you handle your next positions.
“Yesterday’s home runs don’t win today’s games” –Babe Ruth
Focus on Risk Management
Risk management is what separates a trader from a gambler. If you have weighed the pros and cons of a trade idea and you have a trading plan in place, then you’re simply trading what you believe are favorable odds.
“Risk comes from not knowing what you’re doing.” – Warren Buffett
Similar to uncertainty, change is also constant in the Forex markets. The profitable trading methods and correlations today may not be what gets you pips next week. Profitable traders know how to adapt to any trading environment.
By Suren Subramaniam | 10 September 2020