Beginners Forex Education Forex Basics

Healthy Trading Habits to Try Today

Forex trading is a great way to put extra money in your pocket or to earn an unconventional income without having to worry about working a 9 to 5 job. However, the results that one gets depends on a variety of factors, including time spent researching, effort, trading strategies and plans, and so on. Revenge trading, overtrading, and other bad habits can wreak havoc on your trading profits and cause some traders to walk away forever after losing their investment. If you’re currently practicing bad habits, or if you haven’t started trading yet, consider trying these healthy trading habits if you want to see your profits improve significantly.

Habit #1: Reviewing Closed Trades

It’s important to take a look at your results after every closed trade, even winning ones. This helps to distinguish what you’re doing right and wrong, or where your trading plan is or isn’t working. Some traders might pay more attention to these details in the beginning but get lazy with reviewing their trades later on. Don’t fall into the bad habit of letting things go out of sheer laziness, or else you might start to miss things that could be changed to improve your results. Our best advice for this healthy habit is to keep a trading journal, which is used to log important details about each trade for review. This is the easiest and most organized way to keep up with your trading activity and to track improvement over a period of time. 

Habit #2: Only Enter Trades for a Reason

Some traders fall into the bad habit of overtrading because they are looking for the emotional rush of entering a trade, even if evidence doesn’t support it. Others might make the mistake of feeling lazy if they don’t trade on a certain day and enter a trade so that they feel as though they are doing something productive. The best traders actually recognize when it isn’t a good time to enter the market and know when to do nothing. If you want to practice this healthy habit, you need to start by outlining the reasons why you will enter trades in the first place. You might base this on economic data, fundamental analysis, technical analysis, or other pieces of factual information. If you don’t see the signs you’re looking for, simply don’t enter the trade. Remember that it’s better to do nothing than it is to enter a losing trade for the sake of doing something.    

Habit #3: Don’t Let Your Emotions Get the Best of You 

Trading when you’re emotional is a very bad habit that can cause you to make clouded decisions that will likely lead you to lose money. It’s true that many professional traders can control their emotions and don’t get bent out of shape over losses, however, it takes time to become disciplined enough to keep those emotions at bay. If you feel yourself getting anxious, fearful, or overly excited, you should take a deep breath and step away from the computer for a moment until you feel more level-headed.

If you find that a certain emotion is affecting you often, consider doing research online for tips that can help you deal with that exact problem. This is another habit that revolves around the need to recognize when it’s best not to trade. Like with our 2nd healthy habit, you can also double-check that the trade you want to make meets the criteria you’re looking for if you’re feeling out of your element.

Beginners Forex Education Forex Basics

Five Great Habits for Beginner Traders to Practice

Like with anything we do, traders can choose to practice good habits that help improve their results, or they can succumb to bad habits that will work against them. In trading, some bad habits can revolve around laziness, for example, no longer using your trading journal. Other bad habits like revenge trading or overtrading can wreak havoc on your trading account. If you want to avoid bad habits while practicing good habits that will improve your balance, take a look at the 5 good trading habits we’ve listed below.

Habit #1: Prepare Beforehand

Before you even think of getting started, you should have a detailed trading plan and strategy picked out so that you know why and when you’ll trade. With these handy, you’ll know that you’re making decisions based on your comprehensive plan, rather than only playing chance. This can also help you to avoid falling victim to some common psychology-related trading issues as well as making self-biased trading decisions. In addition, you’ll want to put some more time into preparing by checking charts and economic events, keeping up with the news, researching important topics, and so on. It will only cost you a little time to have the peace of mind that you are well prepared to start each trading day. 

Habit #2: Use Stop Losses

If you think that you’re never going to have a losing trade, then you thought wrong. Even the greatest traders of all time have had a bad day along the way, so don’t make the mistake of thinking that you don’t need to set a stop loss. Stop losses can be widened, tightened, and adjusted to ensure to take more control of the amount that you can lose on each trade. Of course, you’ll enter each trade with confidence, but setting a stop loss simply ensures that you’re protecting yourself from losing too much money if the market moves against you. Traders that skip this step in the beginning usually learn the hard way once they lose a lot on one trade or blow their account. 

Habit #3: Devote a Specific Time to Trading Each Day

You don’t have to sit in front of your computer 24 hours a day, but you should set aside a certain timeframe each day that’s just for trading. During this trading window, you can cut out all distractions, including background noise. This good habit is extra beneficial if you trade during your most productive daily window, as some of us are more productive first thing in the morning, while others can think more clearly around lunchtime or into the afternoon. You can also avoid feeling burnt-out by ensuring that your trading window isn’t too time-demanding. 

Habit #4: Keep a Journal!

How will you know what’s going right or wrong if you don’t keep up with your trades? Sure, you might have a general idea of whether you’re making money or losing it, but a trading journal can tell you so much more than that. If you want to be able to pinpoint problems, see where you’re making improvements, know where your strategy is working perfectly, and so on, trust us – you need to keep a trading journal. Sadly, some traders begin with one but stop using it after some time, either from laziness or because they become confident that they don’t need it anymore. 

Habit #5: Figure Out What Works for YOU

There are a lot of different strategies out there and it’s easy to get swept away in thinking that one that has worked for a colleague will work just as well for you. This doesn’t mean you shouldn’t take advice from other experienced traders, only that you should realize that your trading style may be completely different from someone else’s. There are enough strategies out there that you can avoid choosing one that’s too difficult or confusing, that requires more time than you have, that doesn’t work with your schedule, etc. Instead, spend the time searching for a plan that will work for you perfectly and feel that unnecessary stress melt away.   


Beginners Forex Education Forex Basics

Inside the Daily Routine of a Forex Trader

What does it mean to be a forex trader? What is like to be a trader who is brand new and just starting in pursuit of a carrier? What does it mean to be a professional forex trader who has traded for years and who is going to trade until he dies? Answers to these questions are not easily accessible. These are the things that we can’t really learn from a book or Google. This is just something that we can learn from someone who has already walked down that road or something that we simply need to experience. Luckily, we were surrounded by a lot of different types of traders over the past years so we had a chance to perceive forex trading from many angles.

Surely, it is different when someone is just a beginner, where everything is new and exciting apart from some trader who is in the game for fifteen years. After the fifteen years, a lot of sleepless nights have gone, foolish mistakes are no longer involved and the excitement is pretty much perishable. For someone, it becomes a legitimate business and number one priority of income and for 99% it is just temporarily flame. There is a big difference between incorporated traders and a skill-less guy who trades occasionally trying to make a little bit of money. We want to dive deeper into this topic because we think it’s such a huge piece of the puzzle of becoming a good forex trader.

First thing, if we want to go to any business that is thriving and succeeding we need to have a schedule of working hours. A methodical approach where everything is set and where everyone has a specific role is crucial. Treating forex trading as a business is a basic rule. The problem with trading is that most people treat it as a hobby with the absence of any kind of structure to their trading schedule which might be the worst thing to do.

Let’s take an example of a professional gambler, the person who makes the living of gambling. If we talk with professional poker player, he doesn’t go sit down on a poker table all day long, that is not how he makes his money. He plans out: “OK, I am going to play on Friday nights from 9 pm to 2 am because that’s when all the drunk tourists are in town, that’s when I’ve got my edge” or “I am going to play these eight tournaments during the year, no more no less and that’s my schedule.”

In contrast, we have a recreational gambler who sees a blackjack table and say: “Oh cool, I could play, I’m feeling lucky tonight”. The professional gambler is on that table as well but he has crystal clear goals. He is like: “I am going to play for 4 hours or until I lose 2000 bucks”. Eventually, If he loses this amount of money or after 4 hours he will get up and leave. Those people have a schedule, they have planned out their business. Here we have all these analogies because we want to point out how important it is that we have to have our business schedule. The stock market is open only seven and a half hours a day, when we speak about currencies one of the great things and the worst things is that is always open. So there is a chance where we can sit at any time and ruin our trade with just one click of a mouse.

From experience, we know that without a plan we might sit inevitably in front of the system all day long. This is something we will try to avoid because we could easily fall into the trap of over-trading. Most of us are used to going to a job, putting hours and getting paid for it. At some point in life, we all have done that. In trading, we will probably have some days where we are not going to make any trades, so we might feel like we are not really working because when we are actually working we are clicking buttons, we are making money. These moments can often be very irritating for traders, therefore out of inconsistency most people might start to over-click and get into a trade to justify their presence. So working 24 hours as a fulltime trader on the open market is a very unique type of job where we simply need to have our working hours well planned.

How exactly you are going to customize everything is completely up to you guys because everyone has a different lifestyle. We need to understand how to fit trading into our life. The market shouldn’t have control over our time we should try to dictate the tempo of our trades. How we might do that? It will be good to look at the upcoming news reports or events and identify times during the week where there is likely to be a huge move in the forex market. That is how we could plan in advance to be in front of the system during those times and stay away from the system during the other times. It’s always better to plan out the week ahead and try to avoid times where the market is just chopping around without clear direction and high volume.

Of course, we can’t always predict when that is going to happen. The market is a big wild animal and it tends to do crazy things that we couldn’t even expect. So if we want to be successful on the market it will be good to structure our life to where we can follow our routine based on great research and discipline. Routine is very important. Which is why we will try to reveal some of the rituals and habits of successful traders. So for dedicated traders, first thing in the morning we could do is to check overseas markets (Europe, China, Nikkei) and US equity futures. Of course, we are not going to deal with details like when is the best time to hang out with your friends and family or when is the perfect time to swallow your vitamins, that is totally up to you guys. Here we just want to focus on some trading routines that we might implement in our lifestyle.

Further on, we could check news reports like or, there are plenty of resources out there. Keeping ourselves up to date and integrated into the market is a great thing to do. Our job should be to know as many details as we potentially can and constantly educate ourselves about all the features. Considering the risk domain, we should try to look up for relative strength or weakness, what are the strong currencies, what are the weak currencies. This should be an automatic thing we do every time.

We want to trade when a good opportunity is there and just because there is a good chart pattern. Looking for high-percentage setups is one of the routines that we might do as well. So staying up to date to the news is super important. We also need to make sure to be familiar with the upcoming week’s economic news. For example, watching or reading financial news (CNBC) every day for about 20 minutes is highly recommendable. This is a great medium to stay involved because they always talk about currencies there.

Next what we want to point out is that we might consider downloading The Trader Work Station App, so-called TWS, MetaTrader 4, or MetaTrader 5. Professional traders often like to say that these apps turn out to be the best things that ever happen to them because before mobile trading they were handcuffed to the system. Before the TWS they didn’t even know what was happening out there and if they did know they couldn’t make a change. In today’s world with mobile devices we could stay dialed in the market all day long. One more time, starring at the screen all day long is a very bad thing however being dialed in the market all day long is a great thing.

What we want to do here is to try to check prices periodically. The cool thing that we might do is to set the app to alert us when prices do something or when volume does something. We don’t want to sit all day and watch, so setting alert through our mobile trading assistant is a good way of saving our precious time. Signing up for service that delivers news to our phone or email is recommendable as well. Again, or just keeps us dialed in for the big news.

One of the hardest things to figure out as a trader is when to trade and when not to trade. Everyone at the end has to go through the process when they trade too much and then when they really start to understand the notion, they actually swing too far another way where they find all the reasons to not make trades. This pattern from over-trading to under-trading is quite familiar for most of us, it’s part of the process and the great thing about this is that people eventually might consider the risk. Before that they were just thinking about the money, they were never really cautious. Therefore, one of the hacks that we might implement in our daily routine is to find a hobby or some activity that can occupy our time.

We don’t want to click buttons too many times. We don’t want to fall into the trap and make trades out of boredom. Learning how to read a chart is not that hard, there are calculators that can point us what to do but knowing when to stop and how to allocate our time is the hardest part of trading and we should take it seriously. So what we all need to develop is a strategy and routine that is unique for each one us and that works in a way that is comfortable and profitable. We need to approach forex trading as a business and we want to do that with discipline and a plan.

If we develop certain routines we might master ourselves and our emotions by not subjecting ourselves to every single move up and down in the markets. We should trade by dictating our terms with well planned hours of activity and that might be a great base to start and continue trading. Strategy and routine are the two main words we want to remember if we strive for improvement and control over our trading system. Apart from this, we need to allow ourselves to have a balanced life outside of trading.