Although it is good and devoted Business mentors are hard to come by these daysThere are plenty of other forex traders out there who are willing to share tips that can help improve your trading performance.
Let’s take a look at four classic nuggets that are easy to take for granted and why we should be paying more attention to them.
1. Adjust your expectations.
Some beginners have unrealistic expectations because of the “get rich quick” schemes that got them interested in trading in the first place.
Novice traders usually expect to get the same returns promised by these strategies or TikTok videos, sometimes without knowing exactly how they are supposed to get those profits.
Consistently profitable traders know that earning points is more than just subscribing to the latest EA or following “profitable” traders on social media.
It takes time, patience and effort to develop a trading system that suits your personality and then develop the ability to adapt it to a different trading environment.
2. Keep it simple.
With so many beginner-friendly forex education sites out there (none better than BabyPips.com’s School of Pipsology, of course), it’s easy to get excited about the myriad of indicators and trading systems that are being presented to you.
For trading noobs, there is comfort in knowing that fancy systems and indicators, the ones that the “professionals” seem to use, validate their first trading biases.
But unless you have enough practice and/or take the time to test them, technical indicators can give you mixed signals and complicate your trading decisions.
It’s a good idea to Hold on to the price action first and then add the indicators as you see fit.
3. Manage your risks.
It’s easy for beginners and professional traders alike to envy those who earn more than 500 pips a month, not caring that they most likely earned them by increasing leverage, not placing stop-loss orders, or not calculating position sizes.
But while these techniques can get you tons of pips, they can also blow up a trading account in no time.
Remember that even a good trade idea can go south with poor risk or trade management.
Risk management is essential if you want to stay in the game long enough to acquire the skills that will make you consistently profitable.
Let me repeat: Risk management is important If you want to stay in the game long enough to be consistently profitable.
4. Stick to the plan.
Beginners in trading are more vulnerable to the psychological pressures of trading. Without confidence in trading, it is easy to deviate from a trading plan even if it promises good trading opportunities.
Consistency is key in this case. After all, what is not measured cannot be managed or improved. Without consistency, several things can happen:
- The trader will not learn how to adapt the system to changing conditions.
- The trader will not develop the proper mindset (to deal with losses, maintain focus and prevent emotional reactions).
- Without consistent execution, the trader is skewing the expectations of the system/trading method, most likely for the worse.
Forex trading is not a walk in the park but it also does not have to be overly complicated.
Do not hesitate to ask for help and learn from a merchant community So you won’t have to make the mistakes of whoever was in your shoes before.
