Forex: Being Consistent and Forming Habits

Filed under: Learn Forex Trading |

Screen shot 2013-01-16 at 10.46.46I believe that one of the keys to being a successful forex trader is to be consistent and to form trading ‘habits’; and I would like to discuss this issue in a little more detail today.

 

To begin with, how can you assess your trading methodology if you have not used it consistently? How can review your maximum drawdown and choose your risk levels if you trade erratically? These are pertinent questions that need to be addressed. In order to assess the viability of a trading methodology (such as price action trading at significant levels of support/resistance), you need to employ that methodology in a consistent way. For example, you need to create a set of rules that you do not deviate from, and if possible, a habit and routine regarding your trading schedule.

 

Of course, some types of trading methodologies have a good deal of subjectivity attached to them (such as using your gut feeling to make the final call). However, even if your trading style is discretionary, you can still create a number of objective rules to follow, such as your risk levels, and certain criteria for entering a trade (such as trading with the trend, or using support/resistance levels).  If you do this, and you follow your rules consistently, then, after a long series of trades, you can begin to assess the viability of your trading methodology.

 

I also feel that habits are important to most forex traders. Things such as getting up at the same time every day, and checking your charts at regular intervals, are good habit-forming strategies. A clean mind also creates a good trader (in my opinion), so also create habits for keeping your desk clean and record the details of each and every trade for later review. If you do all of these things, then you will have a much better chance of success later down the line…

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