3 easy steps to consistent Forex trading

By Admiral Markets

Dear Traders,

Consistency is key to achieving success in and outside the financial trading world.

But knowing what to be consistent with in Forex, is easier said than done.

In this article, I will share the mistakes I’ve made throughout my Forex trading years:

…and explain the improvements that have helped me build stability therein.

Our
journey starts now.

Capture your plan

I once assumed that knowing my trading plan by heart, was as good as writing it down.

I was wrong and inevitably either forgot or confused my trading moves, until I put pen to paper.

Nothing prepares you as well as writing down your trading plan, from start to finish.

Why?

Because in the heat of the trading battle, there should be no shred of doubt how to react and respond.

Writing down your trading plan, improves your chances of:

1. initially learning it, plus
2. correctly practising it, and
3. regularly improving it.

So if you don’t already have a plan, write one now before reading further.

Practise a trading routine

Now you have a trading plan, it’s time to refine it.

To start with simply:

1. trade the plan exactly as it shows
2. document the results (preferably 30 trades minimum)
3. analyse the plan and do backtesting
4. improve the plan based on points 2 and 3
5. repeat all steps until you are satisfied with the trading plan.

I didn’t do this when I first started trading.

In fact, my main issue was that I lacked focus because I didn’t have a precise plan and routine:

…which made my attention fade at irregular intervals…

…which of course cost me trades.

So I advise setting up a routine that works for you (e.g. 30 minutes of trading each day) and stick with it.

You will see that building this routine gets easier, when you start seeing small successes.

I also suggest keeping track of your success at the start, by printing some of your wins and keeping them as a physical reminder of what you can achieve.

This will keep you motivated and focused.

And don’t forget to practise risk-free at first, on a demo account.

Avoid over thinking

The world of Forex and CFD trading has almost an infinite number of indicators.

Not surprisingly traders are distracted by trying out ideas, tools or setups.

And don’t get me wrong – it is important to test new concepts and see if they improve your trading plan.

Just bear in mind that adding too much will simply create an overloaded and messy trading strategy.

My advice is simple:

…keep your trading plan lean and efficient by…

…only adding when needed and diligently removing whenever possible.

When you eventually implement the above steps and trade with a regular routine, trading will become more
automatic and require less thinking.

In fact, trading typically improves when traders think
less.

Why?

Because they focus on implementing their trading plan, rather than rethinking
during moments of trading.

Being able to trade subconsciously, is highly advantageous to becoming a consistent Forex and CFD trader.

I suggest using your main trading account for your trading plan and keeping a separate
demo account for practise.

The more you practise, the more subconscious and immediate your planned trading actions will become.

Check out the video below, for more advice on trading psychology.

So I hope that having a written plan, a trading routine and consistently updating both – will help your trade more consistently than you may be doing now.

But if you are already consistently trading well – please do share your tips and tricks with us in the comments section.

Cheers and safe trading,

Chris

Article by Admiral Markets

Source: 3 easy steps to consistent Forex trading

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Admiral Markets is a leading online provider, offering trading with Forex and CFDs on stocks, indices, precious metals and energy.