Essential Tasks in Trading Forex

August 19, 2020
Philip Salloum

Understanding and implementing these essential tasks in trading forex to better your odds of consistent gains

 

Implement these tasks, religiously.

Some points may seem obvious, others not so, however what's important is the adoption of these tasks when trading forex. Over the many years in my forex trading career, i've learnt that being consistent with your daily tasks improves the consistency of your profits. So, the essential habits you must learn and adopt in your trading routine are:

 

1. Self-analysis to determine if you are in a state of mind to trade

Prior to starting your trading day, it is very important to make sure you are in the correct state of mind to trade. You need to analyse yourself and make sure you are at the best state of mind to avoid mistakes in the markets.You cannot finish fighting with a friend, spouse, or colleague and expect to make great analytical decisions. Therefore the first and most important step is always making sure your mind is clear and at its best.

 

2. Mental rehearsal to avoid mistakes

The second step involves you rehearsing your set of rules and making sure you are going to strictly stick by them. This will allow you to avoid many mistakes in the markets and in your day.

 

3. Daily focus to lead you towards your goal

It is very important to have goals, but specifically daily goals. You need to determine what your goals are for the day including the pairs you are looking at, the times you will be trading, your risk management, and what you aim at gaining from the markets that day. Once goals are met, it is important to step back and wait until the next day to trade.

 

4. Developing your own style of a low risk idea

For students of Opes Trading Group, low risk ideas and strategies are all taught to them during the forex trading course. It is important for every trader to develop their own ideas and strategies that are low risk in order to always protect their capital. Capital preservation is the most important rule of forex trading.

 

5. Stalking the charts starting from high to low time frames

Looking at the charts from the higher to the lower time frames allows you to be able to see the bigger picture before looking right in. if you started looking from the lower time frames, you could have a wrong picture painted for you as to where the price could be heading. You cannot see the bigger picture if you are standing too close to something, it is the same concept on the charts.

 

6. Action requiring commitment and not thought

Once a trade and an idea has been analysed, it is important not to second guess yourself and take the trade. Do not second guess yourself if you believe in yourself and your trades.

 

7. Monitoring the trade to keep the risk low

Always keep your eyes on your trades. Now that doesn’t necessarily mean you need to be glued to your charts, but check them every once in a while, and at important candle closure, to make sure they are still playing out the way you expect them to.

 

8. Aborting if the trade is not going well

If a trade does not go as planned (and the reality is some won’t), it is important to cut your losses if the trade is clearly not going to recover. There is no reason to hold on to a losing trade if there is no reason for it to recover.

 

9. Taking profits when the reason for the trade has ended

A take profit is placed for a reason, however sometimes the reasons end before the take profit has been reached, meaning it is very important to close the trade even if it means closing it early. Never become attached to a trade that you chase the take profit only to find yourself back at 0, or worse, at a loss.

 

10. A daily review to monitor and prevent future mistakes

At the end of every day, all the trades taken should be reviewed. This will allow you to see what you are doing right, and what you are doing wrong.This will give you a good indication for what is needed for future trades.

 

11. Being grateful for what went well

Something so many people pay no attention to and ignore is gratefulness. Any positive day in the markets, is a great day! Be grateful for all that goes right, no matter how small the profits might be, because 90% of traders lost that day.

 

12. A periodic review to make sure everything is still working well

Every quarter it is recommended that you review your whole trading system. As the markets change, we need to be able to change and adapt with them, therefore a periodic review will allow you to know if things that are working still are or aren’t.

 

So, there you have it. These 12 daily tasks have helped me immensely in creating a successful trading career, and if you can consistently practice these steps, it will be nothing but beneficial for you in every daily trade. To better comprehend the importance of these tasks, its a good idea to understand what forex is and to gain a better understanding of the trading environment.

Philip Salloum