As I was planning to trade the markets today I carried out my usual pre-trading routine. I follow exactly the same routine day after day and it enables me to become more prepared and proficient as a trader and as a businessman.
As part of my Forex strategy trading strategies I would like to share with you a checklist that every FX trader should use in order to become more productive, more organized, and rise your return on investment.
Check your open trades and track their overall performance: This should be the first step you take once you get to your computer. Check all of your open positions and
track their performance.
In a number of occasions stop losses need to be moved to break even or you want to take profit early because of an incoming event (such as non- farm payroll). One of my mentors once told me that “everything that matters should be assessed”, this without doubt applies to spot trading.
Research the market before you place any new trades: I cannot accentuate enough that you need to analyze the market before you open any trades. When you are in a trade you are not the same. You are thinking about the trade all the time and you are more likely to make non-sense decisions.
At the same time, you will be hitting your head if you see a problem in the market that creates a conflict with a trade you already took.
Read the news or read a news calendar: I am most of a technical trader than a fundamental Fx trader; nevertheless, I still try to stay up to date in what is going on throughout the world.
One of the things that I have to analyze the fundamentals of the FX Market is the news calendar.
A news calendar provides you with a list of all the important events that are happening in the internacional economy. A number of them also tell you the expected influence that each specific news event will have on the Forex market.
Check your risk, stop loss, and tale profit values: very small things can make a big difference in foreign exchange trading and diminutive mistakes can origin substantial losses. This is the reason why I always check my risk, take profit levels, and stop loss levels. That’s the only way for me to make sure that that everything is working properly and that I am going to meet my trading plans.
Never let a small mistake become a large loss: I chose to include this one as part of the Forex trading checklist because I have seen a lot of traders lose money this way. We are all human and we will commit mistakes from time to time.
One of the most typical errors traders commit is taking a trade by mistake. I have done it and all professional Forex traders have. This is not that big of a mistake unless you let run and become a larger loss. My advice to you is that if you ever take a trade mistakenly close it immediately, never let a small mistake turn into a big and unnecessary loss!
I Hope you enjoyed my Forex strategy trading strategies please check back frequently as we post many times every week.
To your trading success,
Professional Forex Trader & Educator