Forex trading is hard work.
It's not impossible work, it's hard work. Therefore, you need to understand from the start that when you begin trading that you're going to need a method of attack. This method could be something that is 100% completely automated or 100% completely manual or a combination of both.
However, you need to be diligent in designing your trading method.
Every step you take in creating and formulating your system needs to be a well-thought and well-intentioned step in the right direction. Don't fall into the trap of thinking that the perfect trading system is out there somewhere and that your trading journey is really just a matter of you searching in Google to find it.
Start taking responsibility for your trading account NOW.
Get it firm in your mind that you're about to embark on a costly education that could provide a very rewarding life for you. Nobody else is going to be blamed for your success - but you.
Your education starts now.
Create a trading method that suits you. Sure, you can get ideas from other people, but there's no point trading somebody else's trading system as they've designed it to suit their personality and risk profile.
The best trading system you could ever develop is one that YOU fully understand. This especially somes in handy when things start to go wrong - by knowing the intricacies of your system you will also know how to tweak it and flush any bugs out.
And we all know that everybody is different and everybody has a different appetite for risk in stages of their life. Make sure you fully understand the risks you are undertaking when your trade the forex market. Being a highly leveraged market there exists the potential for high reward, but most importantly it carries with it high risk (the potential of big losses).
There's no point designing an excellent trading plan if you don't even follow through on trading it.
The only way you're going to be diligent in your development is if you do what you say you're going to do in your forex trading. This will mean there will come times when your method will get you out *just* before a 500 pip move, it will also mean that you will miss out on 1,000 pip move. Don't fret yourself.
You're never going to learn and increment for the benefit of your trading method if you continually undermine your system.
(This is why I like developing automated forex systems.)
Let's be realistic - you're not going to be a pro forex trader within your first trading week.
You may have great success in your first trading week, but you'll be unable to sustain it in the long term. Therefore, you're going to need to take special care in mastering your craft.
And the best way to do this is to examine your performance and your trading on a periodical basis.
This could be every month, every quarter, or every year.
If you are conducting this review on your performance and trading it may imply that you'll need to keep a trading log or journal to help further with your analysis. While it can still be rewarding to look at your old trades you may find it even more enriching if you're able to look at the meta-data of your trades - and this could easily be captured by annotating notes prior to your trading entry, during changes of the trade (such as why you adjusted target and stop loss prices) and the exit of the trade.
By collecting as much information as you can it help with our final point:
Every iteration you make to your trading plan should be to improve your profitability.
By undertaking analysis of your previous trades you will be able to spot things you did well and things you did not so well. By increasing the frequency and occurrence of the good things about your trading, and minimising the bad things (or bugs), you should begin to see an improvement in your trading.
Once you've implemented your refinements in your forex trading system it's now a simple matter of repeating the whole cycle again. To help with analysis in the future you may want to create a new version number of your refined system so that you can distinguish the trades that were placed with it to compare against trades that weren't. And hopefully you will see that there has been an improvement in your trading due to your refinements.
Code your forex system using one of the world's most popular text editors. It has syntax highlighting along with automatic code completion. Creating your forex system could never be easier!
Don't know how to design a forex trading system yet? Let me show you how you can easily create your own system using the MetaTrader 4 language. You'll be learning the tricks and traps that catch most amateur forex traders unaware.