This afternoon, I was invited by an ex-colleague who ventured into Binary Option to share some of my practices in trading to his class.
I was really happy to know that there are many people who met me in the past still remembers me and it was really an honor to be invited as a Forex trainer to talk.
As long as there is a need for me, I am willing to make an appearance to share my experiences and knowledge with more people to help spread the awareness of what trading is all about.
And so, this time, I was invited to talk about ‘Trading Habits’. This is probably the root of all failures in trading. A trader with no bad habits will yield bad results eventually no matter how experienced or knowledgeable he is because it will eventually lead to a lot of bad trading decisions, most of the time, unknowingly. If you can start to create and build a set of good and healthy trading habits, you are going to see positive results in no time.
It’s tough I admit…but that’s what separates a good and a bad trader.
Below is a simplified version in point form for my Top 7 Trading Habits:
Top 7 Trading Habits to Consistent Profits
#1 Check the Market Calendar Everyday
- Know when and what kind of news is releasing .
- Identify and decide which are the currency pairs to trade.
#2 Analyse and Identify Key Levels
- Identify and determine key price levels to execute a trade.
- Have a gauge of when is the right time to trade and how long it will take.
- Create a trading plan
#3 Stick to Your Trading Plan and Risk Management
- Never execute a trade prematurely or too late
- Never risk bigger than what you intended.
#4 Create and Follow a Trade Monitoring Schedule
- Determine when to revisit running trades based on intervals (depending on your trading timeframe), market hours and key economic data releases.
- Modify running trades sensibly such as taking partial of full profit, cutting losses partially or fully, shift your stop loss to reduce risk, add more position when the market is in your favour.
#5 Record Your Trades and Create A Trading Journal
- Time of trade execution?
- How much did you risk?
- Reasons to execute the trade? Based on technical analysis, fundamental analysis, market sentiment.
#6 Set A “Stop Loss” For Every Trade AND in Trading
- Never leave a trade without a stop loss
- Set a maximum loss on a daily, weekly and monthly basis so you know when to stop trading and avoid deeper loss.
#7 Find A Trading Partner For Trade Review and Discussion
- Identify your blind spot
- Refine your trading strategy
- Prepare for the next trading week
If you would like to receive the full version, click here to drop me an email and hopefully we can catch up for a coffee as well.