How to Improve Your Forex Trading Routine?
Being a successful Forex trader is not only the aim you should reach out for, it also requires an effort to keep that goal consistent. Many factors exist to impact your bottom line and following a straightforward trading routine is one of them. Here are some of the ways to improve your Forex trading routine.
- Take breaks and get at least 7 hours of sleep
Forex trading is a daunting task in itself. Keeping an eye on the charts all day long can stress out a body a lot. Ensure you take occasional breaks or hit the gym after a long day at work to revamp yourself for the next day. You should also get at least 7 hours of sleep to keep the blood flowing.
If you still feel tired after following these steps, consider changing your trading style which needs less screen time. For instance, you can go for swing trades if you are in scalping trades. Changing your trading style assists in impacting the amount of time you spend in front of your screen.
- Prepare for your trading day the night or week before
Your imminent trading day doesn’t begin in the morning, but the night before. At the culmination of your trading day, reflect and pen down the main news highlights scheduled for the next day that are relevant to the currencies you are working on. Unanticipated numbers may impact on your open trades directly and you should always consider them into account and manage your trades on that basis. Keep yourself up to date with all the market movers.
You can also implement this step a week before. You can browse through the reports of the next week, and look for prospective trading opportunities once the next trading week opens. Many Forex related websites (click for more) also publish market overviews for the imminent week.
- Make consistent improvements to your trading strategies
This is the most effective weapon of all. Firstly, find a trading strategy that complements your trading style. Stick to one strategy instead of jumping from one to next to keep you away from the chaos. Also, there are no strategies that are 100 percent profitable, but you should be able to draw out its pros and cons.
Secondly, beware that not all the strategies are profitable for the same market environment. The strategies which are trending, may work well with the trend, but may create false signals in ranging ones. The same goes for the ones that are profitable in the ranging markets but not in the trending ones.
Even if you are comfortable with your current strategy, keep making improvements. You can spend your free time fine-tuning your entry and exit strategies and backward testing some of the trading ideas.
You can also keep a trading journal to spot any weaknesses in your trading strategy and improvising them. You should inspect your journal entries on a daily basis retrospectively to ascertain the trading patterns that caused winning or losing trades.