Any professional activity benefits from proper preparation and a warm-up before that activity commences. Apply this principal to your trading and you should begin to see positive results. These positive results will not all necessarily be in terms of financial profits - they will include an increase in your self confidence as a trader, your emotional and physical health as a trader and the integration of your trading activities into the rest of your life.
Before you trade :
1. Ensure that your intention is positive - tell yourself that you will trade safely and so be successful and profitable. If you do feel positive then trade - but consider your trades carefully and employ risk management (stop loss and take profit).
2. If you do not feel positive - do not start to trade. Instead think about recent trades - were they ill-conceived? Were you disciplined enough? Think about other aspects of you life - are there any distractions in your personal life which could be affecting your feelings about trading? How is your financial situation? Can you really afford to trade today - or are you risking money that is needed for essentials?
... to be continued ...
Julie
Visit my blog - aimed at "newbie" forex traders - experienced traders very welcome ! :-
http://who-gives-a-forex.blogspot.com/
4 posts • Page 1 of 1
Preparing to trade - a checklist
by Tropezienne on 09 Sep 2008
Last edited by Tropezienne on 09 Sep 2008, edited 1 time in total.
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Tropezienne - VIP
- Posts: 305
- eToro member since: 13 Mar 2008
Re: Preparing to trade - a checklist
by Tropezienne on 09 Sep 2008
... continuation ....
3. Is your brain clear? Are your thought processes sharp? Before trading you should have exercised and eaten properly so that you feel clear and fresh and focussed.
4. Times to trade - be very clear about this. Don’t just decide to open your account and trade because you have an hour free. Know, ahead of your trading session, exactly when you are going to trade and why. Your trading system and the other commitments in your life will dictate the best times for you to trade. Once you are clear about this you can check and apply points one, two and three above.
5. Fundamentals 1 - make sure that you are aware of any economic news that is due to be released and which may affect the pairs your are planning to trade. Inform yourself of the timing of this information and be realistic about your experience - is it enough to trade at enough to trade such times, or should you wait until the numbers have settled down again?
.... to be continued ...
Julie
Visit my blog - aimed at "newbie" forex traders - experienced traders very welcome ! :-
http://who-gives-a-forex.blogspot.com/
3. Is your brain clear? Are your thought processes sharp? Before trading you should have exercised and eaten properly so that you feel clear and fresh and focussed.
4. Times to trade - be very clear about this. Don’t just decide to open your account and trade because you have an hour free. Know, ahead of your trading session, exactly when you are going to trade and why. Your trading system and the other commitments in your life will dictate the best times for you to trade. Once you are clear about this you can check and apply points one, two and three above.
5. Fundamentals 1 - make sure that you are aware of any economic news that is due to be released and which may affect the pairs your are planning to trade. Inform yourself of the timing of this information and be realistic about your experience - is it enough to trade at enough to trade such times, or should you wait until the numbers have settled down again?
.... to be continued ...
Julie
Visit my blog - aimed at "newbie" forex traders - experienced traders very welcome ! :-
http://who-gives-a-forex.blogspot.com/
-
Tropezienne - VIP
- Posts: 305
- eToro member since: 13 Mar 2008
Re: Preparing to trade - a checklist
by Tropezienne on 09 Sep 2008
... continuation ...
6. Fundamentals 2 - be aware of significant business or world news that may affect the markets. As with point 5 decide whether or not you are informed enough and experienced enough to benefit by trading at times of high volatility. If not - or if you are unsure - sit it out, or trade on your demo account only and learn from the experience.
Fundamentals are something that I personally find hard to interpret - mainly because there is so many financial reports and current affairs programs out there. I have used forex sites and blogs to follow fundamental analyses and have become aware of the sheer torrent of information that affects my trades. It is for this reason that I prefer to use technical analysis - which is great for scalping and day-trading but limiting if I really want to earn a decent income from forex.
7. Before you trade, take a few minutes to look at what has happened in the markets over the last few hours. This may affect your choice of currency pairs, for example, or you may see something unusual which makes you look at economic and business news. Knowledge is power in forex as elsewhere.
... to be continued ...
Julie
Visit my blog - aimed at "newbie" forex traders - experienced traders very welcome ! :-
http://who-gives-a-forex.blogspot.com/
6. Fundamentals 2 - be aware of significant business or world news that may affect the markets. As with point 5 decide whether or not you are informed enough and experienced enough to benefit by trading at times of high volatility. If not - or if you are unsure - sit it out, or trade on your demo account only and learn from the experience.
Fundamentals are something that I personally find hard to interpret - mainly because there is so many financial reports and current affairs programs out there. I have used forex sites and blogs to follow fundamental analyses and have become aware of the sheer torrent of information that affects my trades. It is for this reason that I prefer to use technical analysis - which is great for scalping and day-trading but limiting if I really want to earn a decent income from forex.
7. Before you trade, take a few minutes to look at what has happened in the markets over the last few hours. This may affect your choice of currency pairs, for example, or you may see something unusual which makes you look at economic and business news. Knowledge is power in forex as elsewhere.
... to be continued ...
Julie
Visit my blog - aimed at "newbie" forex traders - experienced traders very welcome ! :-
http://who-gives-a-forex.blogspot.com/
-
Tropezienne - VIP
- Posts: 305
- eToro member since: 13 Mar 2008
Re: Preparing to trade - a checklist
by Tropezienne on 09 Sep 2008
... continuation ...
8. I think that this is the most important point - lecture yourself about your discipline. Remind yourself of the importance of using Stop Loss and Take Profit orders. Be aware of your weaknesses as a trader : do you have a tendency to over-trade? Do you have a problem sticking to your system? Do you get distracted easily? Know yourself and make realistic discipline commitments. Refresh these resolutions at the start of each trading session. List out those things that you commit to in terms trading discipline. e.g. I will only take trades on signals that my system gives me. Go through them before the trading day begins and refresh your resolution.
9. Take a look at the trades from your last trading session - this will refine your skills and increase you confidence in your system. If you had some losses you can make sure that there is no residual negative feeling as a result of those losses. Do not trade if you are feeling negative.
10. Read you trading journal - if you don’t yet keep a trading journal, consider starting one, it will be a great learning resource for you.
Additions and suggestions for this checklist most welcome.
Julie
Visit my blog - aimed at "newbie" forex traders - experienced traders very welcome ! :-
http://who-gives-a-forex.blogspot.com/
8. I think that this is the most important point - lecture yourself about your discipline. Remind yourself of the importance of using Stop Loss and Take Profit orders. Be aware of your weaknesses as a trader : do you have a tendency to over-trade? Do you have a problem sticking to your system? Do you get distracted easily? Know yourself and make realistic discipline commitments. Refresh these resolutions at the start of each trading session. List out those things that you commit to in terms trading discipline. e.g. I will only take trades on signals that my system gives me. Go through them before the trading day begins and refresh your resolution.
9. Take a look at the trades from your last trading session - this will refine your skills and increase you confidence in your system. If you had some losses you can make sure that there is no residual negative feeling as a result of those losses. Do not trade if you are feeling negative.
10. Read you trading journal - if you don’t yet keep a trading journal, consider starting one, it will be a great learning resource for you.
Additions and suggestions for this checklist most welcome.
Julie
Visit my blog - aimed at "newbie" forex traders - experienced traders very welcome ! :-
http://who-gives-a-forex.blogspot.com/
-
Tropezienne - VIP
- Posts: 305
- eToro member since: 13 Mar 2008
4 posts • Page 1 of 1
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