Improve Forex trading success rate with 4 simple steps
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Today I will focus on the following steps:
How to review past performance to improve success?
How to write the plan for success?
How to Increase concentration when trading?
How to Stick to your trading plan?
Step 1:
Now please pull out your trading results from your MT4 account. Go to Journal and click on Analysis. Write out the information in your Trading diary manually.
All winning Trades percent return per trade (Average win in $ or %)
All losing Trades percent loss per trade (Average Loss in $ or %)
You may have some manual trades too, you should write out separately and note if you actually made any notes and you remember why you took those trades.
You’d be surprised how many people take manual trades and at the review time they don’t remember why they took those trades and that is the key to replicating success and reducing the losses. You need to know exactly why you took a certain action. If you don’t, then a coach will not be able to assist your progress exponentially.
Step 2:
Now that you know your last quarter performance which is a good set of data for you to asses, let’s get working on a plan to improve. Answer the following questions:
What are my strengths?
E.g. I traded every day at the same time. I stick to my plan and my preferred strategy. I knew when to stop trading. I traded ‘X’ strategy successfully with a 70% success rate. I closed too early and took profits instead of letting the trade run or I exit before the high impact news item and took my profits on time….etc.
What are my weaknesses?
E.g. My manual entry is weak because I am not sure about what I am doing. I took other trade idea selection blindly without analysing. I traded ‘X’ strategy with low success. I didn’t stick to my trading plan. I constantly traded against the trend. I didn’t check news. I was greedy. Etc.
How can I enhance my strengths?
Remember, to trade successfully your undivided attention is required so make focus your primary tool for success.
If something is working than it makes sense to repeat it and make it better.
Isolate the strategy on which you have a mastery and is producing constant positive results. Write it out on paper step by step again and stick it on your pc or around so you see it daily.
Understand your exit strategy precisely otherwise discuss with your coach what you can do to improve. Leaving your trades open for days may not be the suitable idea for you, so please check it.
I can start to log my mental states while trading each session in my daily journal.
How can I reduce my weaknesses?
Review my trading plan before each session till I remember each and every word (picture it in your mind’s eye)
Refocus on my goals e.g. ‘Make 2% per day and walk away
Trust in my well researched strategy and only trade when the set-up is precisely available.
Stop trading around high impact news for shorter time frames.
Do mental exercise before trading each session i.e. review my plan and imagine it working out. Picture yourself precisely executing your plan.
Step 3:
Increase concentration while trading is easy when you learn to stop distraction. This is the reason it is important to trade in a quiet place and use a bigger screen. I have used the following technique with many clients who found it hard to meditate and it works.
Use a candle flame and look at it for 1 minute at a time.
You can use a stop watch.
Focus 1 minute at a time and learn how long your mind can concentrate.
Do it just for 5 minutes before a trading session.
Step 4:
Now that you have reviewed your results, I suggest that you write a new trading plan including the above so you know what to do. It is very important that you read your plan before each sessions. Some things that you can also include in your plan are the definitions of trend, higher highs and higher lows, lower highs, Bar charts pictures, double bottom, double top, horizontal and Vertical levels etc, and look at these patterns in your plan before trading every time.
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