It can be said that the new trading period is a very special period for a trader. This is the stage that will determine whether you are suitable and capable of continuing this job or not.
Besides the challenges, in the first year of trading, new traders will learn extremely valuable lessons. If they apply these lessons well, they will progress faster and further in the later stages of their trading career.
1. Stick to your Forex trading plan
A mistake many traders make with their trading plans is that they create a set of rules that must be followed or should not be followed when trading.
There is nothing forcing you to follow the plan and there will be times when you feel that the trade won't "work" if you persist in doing exactly what the plan says. As a result, you make emotional trades, make sudden adjustments and changes, and deviate from your plan when trouble arises.
What you should remember is that a good trading plan is a set of dynamic principles, which are "found" after hours of analysis, testing and refinement.
If applied consistently, a trading plan will give you a great advantage for long-term profits. You will lose this advantage if you deviate from your plan.
One way to help you stick to your plan is to keep a trading journal detailing your statistics.
Once you see your trading plan working, you will have more motivation and confidence to stick to it to achieve your goals.
2. Be patient in trading
Basic trading concepts and techniques are simple and easy to learn. The difficult thing is to stay patient and disciplined to always make good trading decisions.
Patience in trading can be understood as:
• Wait for good trading opportunities or the price to touch a profitable threshold
• Cut losses and take profits as planned
• Develop a trading system that works for you
Trading is a long process, not a short-term game. You need to be patient and take advantage of opportunities when they arise, which is the key to sustainable profits.
3. Practice risk management in the market.
Risk management is what separates a trader from a gambler.
The opportunity to profit always comes with some risk, which is why risk management is important. Risk management has many things to do such as:
• Don't risk more than you are willing to lose
• Do not move or ignore stop loss orders
• Trade with appropriate volume
A good trading strategy will provide high profit opportunities, but they will be meaningless if the risk you take is too high and ends up in losses.
4. Trade based on what you see
Bias is a dangerous thing in trading, it can change your perspective.
A string of winning trades can make you think that you have the holy grail in your hands, that you will continue to win, which is dangerous because this thinking (or this bias) will cause you to take more risk than usual. usually a lot.
Another aspect, or the opposite, is that if you encounter a losing streak, frustration can also motivate you to trade much more risky and emotional in order to regain what you have lost.
In general, you should only trade based on what you see and your information and analysis. Prejudice and emotions can easily lead to negative results.
5. Don't compare results with anyone
Every trader has his or her own trading journey.
Nowadays, there are many trading activities of many different traders being shared. This information is very valuable because it helps you learn a lot of good things about other traders, but on the other hand, it also makes you want to compare yourself with them.
This can distract you from your trading plan and style. You should spend more time evaluating the effectiveness of your trading process and make adjustments and changes appropriate to the actual situation and should not try to become someone else.
Besides the challenges, in the first year of trading, new traders will learn extremely valuable lessons. If they apply these lessons well, they will progress faster and further in the later stages of their trading career.
1. Stick to your Forex trading plan
A mistake many traders make with their trading plans is that they create a set of rules that must be followed or should not be followed when trading.
There is nothing forcing you to follow the plan and there will be times when you feel that the trade won't "work" if you persist in doing exactly what the plan says. As a result, you make emotional trades, make sudden adjustments and changes, and deviate from your plan when trouble arises.
What you should remember is that a good trading plan is a set of dynamic principles, which are "found" after hours of analysis, testing and refinement.
If applied consistently, a trading plan will give you a great advantage for long-term profits. You will lose this advantage if you deviate from your plan.
One way to help you stick to your plan is to keep a trading journal detailing your statistics.
Once you see your trading plan working, you will have more motivation and confidence to stick to it to achieve your goals.
2. Be patient in trading
Basic trading concepts and techniques are simple and easy to learn. The difficult thing is to stay patient and disciplined to always make good trading decisions.
Patience in trading can be understood as:
• Wait for good trading opportunities or the price to touch a profitable threshold
• Cut losses and take profits as planned
• Develop a trading system that works for you
Trading is a long process, not a short-term game. You need to be patient and take advantage of opportunities when they arise, which is the key to sustainable profits.
3. Practice risk management in the market.
Risk management is what separates a trader from a gambler.
The opportunity to profit always comes with some risk, which is why risk management is important. Risk management has many things to do such as:
• Don't risk more than you are willing to lose
• Do not move or ignore stop loss orders
• Trade with appropriate volume
A good trading strategy will provide high profit opportunities, but they will be meaningless if the risk you take is too high and ends up in losses.
4. Trade based on what you see
Bias is a dangerous thing in trading, it can change your perspective.
A string of winning trades can make you think that you have the holy grail in your hands, that you will continue to win, which is dangerous because this thinking (or this bias) will cause you to take more risk than usual. usually a lot.
Another aspect, or the opposite, is that if you encounter a losing streak, frustration can also motivate you to trade much more risky and emotional in order to regain what you have lost.
In general, you should only trade based on what you see and your information and analysis. Prejudice and emotions can easily lead to negative results.
5. Don't compare results with anyone
Every trader has his or her own trading journey.
Nowadays, there are many trading activities of many different traders being shared. This information is very valuable because it helps you learn a lot of good things about other traders, but on the other hand, it also makes you want to compare yourself with them.
This can distract you from your trading plan and style. You should spend more time evaluating the effectiveness of your trading process and make adjustments and changes appropriate to the actual situation and should not try to become someone else.
