As long-time readers know, one of my favourite trading method when I started this blog was swing trading which I attempted to capture gain in forex prices within one to three days. I used only simple technical analysis, i.e. breakout pattern, to look for prices with short-term price momentum.
I found some success using this simple method immediately but I got too focused on winning back then. My impatience and lack of strategic planning got the better of me. Since then, my new goal in forex trading was to improve on the mistakes I made, and to build upon something I did right.
Here are my top forex trading exercises which put me back on the winning track:
1. Seize opportunity to learn and grow
In trading, don't be afraid to fail and startover again. It's important to remind ourselves that failing is an integral part of learning. Make sure you eradicate your mistakes and if possible, make small positive changes at a time. The small changes do add up over time which can give you a solid foundation to tackle trading obstacles.
My examples:
>> Realisation after blowup
>> Learning and trialing new trading methods
2. Keep a journal
"A journal keeps you constructive, keeps you learning, and keeps you working on the things that are most important. It is not a tool for simply rehashing the day or voicing your feelings; it is your tool for self-development: your means for coaching yourself." (ref: traderfeed )
My examples:
>> The use of a trading journal (on this blog)
>> Be specific on mistakes and focus on positves (on daytrading blog)
3. Write/share a plan
You should have a detailed trading plan. In addition, it feels really good if you are able to share your particular expertise. Moreover, it feels even better to know that someone, somewhere, might find his or her trading outcomes improved by something you’ve written.
My examples:
>> Creating trading knowledge out of ordinary
>> Finalising a simple forex daytrading strategy
4. Organize a group
What makes you passionate about forex trading? "Being around other people who are passionate about the same thing would make you even more passionate about it. Seeing a group grow and take off can be tremendously awarding - but even failing can teach us important things too." (ref: lifehack)
My example:
>> Setting up a forex daytrading members group
5. Practise a simple daily routine
Especially when comes to dealing with the Forex market, we are expecting full-on, non-stop price actions around the clock 24/5. Thus, having a simple plan would definitely help to focus on our trading edge and also improve trading mentality.
My example:
>> Having a simplified forex daytrading routine
Achieving day trading success isn't something that should be left up to chance. We should not simply bounce from one reaction to the next throughout our trading adventures. Having real goal or plan in mind is a far better winning strategy.
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