When talking about trading, especially forex trading where the tempting overuse of leverage and get rich quick mentality gets the most out of traders there are some key factors one needs to considerate.
One of them, as I can tell from my experience is being organized. The importance of this element goes far beyond trading. Think about taking the bus, you rely on other people to be organized in order for you to get to your destination on time. The bus driver must be on schedule, stop lights must be synced, the route must be prepared and so on.
In almost every aspect of your life you experience this trait and almost, inevitably, you’ll have to embrace it regardless the career you’ll follow.
Below, I will briefly describe my typical trading day:
I get up around 6:00 am and after my morning routine, a little bit of exercise, shower, breakfast, I open my laptop and I look at the current trading prices for the currencies I’ve traded/monitored and then I look at my previous trading day.
I want to see if I entered the trade to soon or too late, if I could have stayed longer or maybe exited sooner, I want to get a correlation or enforce one based on the price action (news I might have overlooked, trading patterns/setups I might have missed).
In order to accurately do this I keep a trading journal, I take a print screen of the chart for two time frames when I place an order and also when I’m existing the trade. I have a numbered system on which I note this print screens correlated with a notebook I keep in which I also note down the entry price, SL, TP and the exit price plus my profit or loss on that particular position. This way I can match my writings in my notebook with the print screen of that trade.
Towards the end of my morning I try to envision the rest of the trading day. Am I waiting for a signal here? Do I believe the selloff will continue there ? Do I wait for today’s FOMC Meeting to see the market reaction? and so on.
At 9:00 am I leave for work where I constantly monitor the market and my orders or my ongoing trades. I don’t, under any circumstances tamper with the SL of my trades, I do, sometimes move the TP.
I have a few rules of my own that helped me maintain a stable balance of my account and gain some pips at the end of the year.
I don’t over trade. Maybe it’s silly or doesn’t work for other traders but I have a maximum of two trades per day and a maximum exposure of 6% of my account.
As stated before, I never move the stop loss of my position and never trade without it (TP as well). I don’t care what I think is going to happen in the market or how deadly serious I believe that moving the SL will turn a bad trade into a good one I don’t do it.
I don’t know where the market is going, I can only make an assumption based on my past trades, what I’ve learned and what my instinct dictates. I always open a position with this in mind.
I try to keep my relationship with this environment as humble as possible and remind myself that each day is a new trading day and if yesterday’s trades were easy today’s might be choppy.
I don’t believe in missing out on an opportunity. I better wait for the confirmation signals rather than jumping on a trade to gain those “early pips” just to enforce my beliefs upon the market.
I have a goal. I’ve underestimated this aspect for a very long period of my trading life, never really thought it to be important - I was dead wrong. Without having a destination you can’t really figure out all the stops in between and this can be problematic and negatively impact your trading activity.
In closing, I feel the need to address one more aspect of my trading venture: I don’t trade for money. What I mean by this is that I don’t rely on profits from trading to pay my bills, I am just simply trying to enhance my savings. I believe this to be a very important aspect because it’s not stressful, I’m not constantly looking for trades or pips or enforce beliefs on the market based on a hunch just because the rent is due.
I hope all of you out there find the right trading setup suitable for you and constantly make pips out of it.
All will be well,