Trading with a Business Mentality

Filed under: Learn Forex Trading |

 

If you are serious about being a full-time forex trader, then it is of paramount importance that you go into it with a business-like mentality. You cannot go into it like any other hobby and expect to get results like a professional. If you kick a football around every Sunday with your mates, you cannot expect to play for England! You must train every day and get live match experience at the very least. You must act like a professional. So how can you do this?

 

Well, you can begin by recording all of your trades on a daily basis, including your risk, reward, type of trade, date, length of trade (when was it opened and closed?), and a running total of your profits and losses. It is also useful to have a running total for your bank so that you can make a graph (excel is easy) and see how you are doing. By doing this, you can see how your long term and short term performance has been, and you can also find out what your maximum drawdown is. This is very important for deciding on your risk levels. If your maximum drawdown is 50%, then you are risking way too much. On the other hand, if your maximum drawdown, over a long series of time/trades, is only 5%, then you can probably higher your risk, and therefore higher your reward and make more profits.

 

Another thing you can do is set up your own office at home and keep files on all the trades that you make, which you can review at the end of the month. It is important to review your performance and try to make any necessary improvements – and to make yourself accountable like an employer would. These are just a couple of things you can do to be more business like, but I’m sure you can think of more.  But the bottom line is, if you want to be a professional, then you must act like one.

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