It is said that only 1% – 5% will consistently make money in forex trading.
You’re going to need all the tricks in every book if you want to be included in the elite few.
Of course, it starts with NOT making the basic mistakes in trading forex.
Are you unintentionally sabotaging your chances before you even take your trades?
Here’s a list of the bare minimum you need to avoid failure as a trader:
1. Make sure you get enough sleep
Don’t miss sleep. When you’re tired, it’s hard to concentrate.
Your emotions take control of you and you feel deep frustration, even when you face a minor setback.
Concentration requires energy, and when you’re tired you don’t have enough energy to trade, you’ll end up making unnecessary errors and losing money.
Get sufficient sleep so you can stay alert and are ready for action.
2. Don’t trade money you can’t afford to lose
Many new traders trade with their milk money and wonder why they feel scared when they enter and watch their trade.
If you want to trade calmly and rationally, you must trade with only money you can afford to lose.
If you have nothing to fear by losing, you’ll be able to focus on building a system that would yield more consistent profits.
3. Make a trading plan and stick to it
Don’t trade by the seat of your pants. Map out your trades in detail. Know where to enter, where to exit, and when to adjust these levels.When you execute the trade, stick with your trading plan. Be aware of when you have to do what you said you’d do during the planning stage.
Amateur traders do the opposite. They have no clue where to enter and exit. If they do have a plan, it’s probably unclear and difficult to follow. They don’t know what to do so they eventually panic.
Creating a plan and following it will help you avoid costly trading errors.
4. Double-check your orders
Don’t waste all your research and patience waiting for an opportunity by entering incorrect information when it’s time to execute.
Make sure you have a stable internet connection. Familiarize yourself with your broker platform.Check if you’re trading the right asset, the decimals are where they should be, and that you don’t have open orders that should’ve been canceled long ago.
Remember that making consistent profits from trading is hard enough. You don’t need to sabotage yourself.
By trading with money you can afford to lose, double-checking your orders, sticking to a trading plan, and making sure you get enough sleep, you give yourself the best chance to grab some pips from the market on a consistent basis.