A Simple Way To Learn To Trade Forex
Many people ask me what?s the best way to trade currencies profitably. In my opinion besides the formal knowledge of charts indicators, other technical and fundamental things in forex it is very important to practice the execution of trades consistently.
As in any endeavor where you need apply continuous effort you need to be accountable to someone. When we study at school we were accountable to our teachers to do the homework and acquire the proper knowledge. When we go to work we are accountable to our boss.
Leaning to trade forex is no different. You need to keep yourself accountable to someone. It is best if you can find or afford to hire a mentor who trades currencies himself. If you don?t have such a mentor then a friend or relative will do. It is very important to find someone who would be supportive of your progress in trading forex.
Many people come to forex or start any business because of the promise of freedom. Unfortunately it takes even harder work than if you worked for someone else at the beginning. Therefore instead of become discouraged it is better to find a partner who would hold you accountable to finish all your tasks.
I personally have my wife at the end of the day to go through all my tasks and see if I finished them. She has no understanding of what I am doing exactly in Forex but just the awareness of the fact that at the end of the day I will need to report accomplishments of my daily tasks makes me to work with a lot more focus.
Here is what you can do to drastically improve your trading skills. Pick a trading strategy that suits you the best. Make a schedule of how many trades you need to backsets with this strategy. Make a list of parameters you want to improve in your trading. For example it can be something like ?I will not move my stop loss once I am in the trade?, ?I will not close a trade until it reaches take-profit or stop-loss level?, etc. Put everything on paper.
Now once you?re made that kind of plan stick to it and make a report at the end of the day to your partner. If you cannot do it every day then do it at least at the end of each week. But you need someone to report accomplishment of your tasks. It is not important what results you are getting in any single trade. If a trade was a loser but you managed to follow your plan you accomplished your task. If a trade was a winner but you won it by breaking your own rules then consider it to be a failure.
This advice probably can be applied not only to learn to trade but also to learn any new thing. The main goal here is to develop a new habit. Once you developed that habit then consistently profitable trading will become a simple thing like riding a bicycle for you. You will be wondering how did you manage to fail such a simple thing before.