We all hear about how to keep a log of our forex trades and take screenshots and make a note of this that and the other, but one aspect that traders often overlook is the emotional side of the trade.
Staying Cool In The Forex Heat.
You must take the view that if you are getting too involved in your forex trading, then you are compromising your trade and you shouldn’t place one on. The movements in the market will have an impact on you, if you are chart sitting all day and there is quite a bold move out of the blue, which there frequently appears to be on the 5 min timeframe then you are quite likely to put emotional trades on. First of all you shouldn’t consider trading off of the 5 min, it will eat you up emotionally and spit you out, any small move in the market will appear to be a large on on the 5 min. Your aim as a forex trader is to make it as easy as possible for you to succeed, and the best way to do this is the higher timeframes. So how do you know if you are cool calm and collected and prepared for your forex trading? You write it down, as with all the details you keep in your log about your trades, write down your emotional state before you actually place that trade, take the time, the market won’t go without you and for the times it just might you will gain in the long run by taking a more considered approach. By the time you’ve written down your emotional state you will probably realise whether you should be trading or not.
Using Your Log To Develop As A Forex Trader.
As well as using your log in retrospect where you can review your trades, you need to be using it in the moment, you want to be aware of what you are writing down. It is so easy to have a nice log page with a lot of detail in where you just go into mechanical mode and record the details without seriously thinking about them. Being successful at forex trading requires you to be totally conscious and aware of what’s going on, whatever signal or setup you are looking at, don’t look at it in isolation, look at what has happened in the market, has there been any recent news announcements, are there any coming up soon, these are the points you need to be looking at for every trade. Most of forex trading is about your psychology, it is no good having a great strategy if you don’t follow it, and it’s your psychology that will stop you following it. Make plenty of notes, take your time and be totally aware of your actions and you have a good chance of being on the road to success.