Forex learning articles about “Tips for Thinking Like Professional Traders” I have previously written 2 tips, I will continue to the third tip.
3. Control your emotions
In the previous article, I have discussed the importance of emotion and soul in trading. The fact is that from the beginning many experienced forex traders made this fundamental mistake.
It’s true that no one can turn off emotions like greed or fear. All we can do as a trader is to control those emotions.
We must make the right trading plan for forex trading.
3.1. Capital management is right for forex trading
Most traders apply too high a risk to their transaction capital. This can cause fatal errors.
Profits have not been realized as planned through the profit / loss ratio, even the loss we get which means that all of our transaction capital is used up.
Professional traders have financial management in managing forex trading accounts with established rules , such as:
- Per transaction risk not more than XX% of trading capital
- Losses in one trading day must not exceed XX%
- XX% of the monthly profits will be taken from the trading account
3.2. Limit the number of your transactions to a healthy level
Many inexperienced traders take all the opportunities in front of their eyes.
Our goal is to act for long-term benefits.
Precisely for this reason we must allow open positions, if the probability of winning is high and our market analysis is still in line with the market.
To be able to analyze market conditions well, we need a trading plan which contains the principles of trading strategies and EXPERIENCES .
Unfortunately, many traders ignore to quickly evaluate market conditions and intuitive actions that are related to experience.
The more a person is active and sees the market correctly, the better he assesses market opportunities .
Just knowing his theory is not enough to make someone become an expert.
4. Make your document or trading journal
All tips and suggestions in this article will be of no use if you don’t follow them.
So, you need something to record all your actions, this plays an important role in shaping the way of thinking and the learning process of your Forex trading .
Something that is Forex trading plan and your Forex trading journal. For journals and trading plans you can learn about advanced forex learning articles.
Forex Trading Journal as a trader diary
Unfortunately most traders lack discipline for long-term trading success.
Discipline can be learned.
If we achieve success in Forex trading, it will automatically increase confidence in trading. In this stage it is important that we document what actions and trading systems we have done so as to obtain positive trading transaction results.
So we can always see which trading system has worked for us, we must document the results of our transactions as well as possible.
In addition, it is necessary to also create graphical screenshots with different time frames so that you can later find opportunities in the currency pair.
Start making your trading journal.
This will help you take responsibility for your actions and learn from your mistakes, because you can track all activities based on your documentation perfectly.
Check out the next tips on forex learning articles with the theme “6 Learning Tips for Thinking Like a Professional Forex Trader” Part 3.