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Eight habits of successful traders

Your habits will determine your success

It’s always wise
to get the best of the other people’s experience. Trading is no exception. They
say that it takes doing something for 21 days in a row to form a habit. Isn’t
it time to get going? Below you can find a list of recommendations that will have
a positive impact on the results of your trading.

1. Set goals

It’s hard to
invent something better than a goal-driven approach. Make sure though that you
set yourself the right kind of goals. We don’t recommend you to have a daily
profit target: a day may be full of interesting profit opportunities or it may
not.

If you try to
reach some specific amount of profit every day, you will feel loads of the
unnecessary stress. The odds that you will hate trading at some point will get
high in this case. Consider having monthly and annual targets instead.

They will be able
to keep you motivated and help you track your performance without too much
pressure. Make sure that setting a goal is not a one-time event for you. Work
with your goals on a constant basis.  

2. Keep a journal

It’s a piece of
advice you will find everywhere. Yet, it’s not possible to omit this point.
After all, your own experience is the key source of your knowledge about the
market. As a result, it’s necessary that you make the most out of your past
trades, no matter good or bad. A journal will help you to keep track of your
successes and mistakes and improve.

3. Manage your risks

If you want to
stay in the market for a long time and capitalize on your trades, then risk
management should be your key habit. Check that your risk exposure is
reasonable in every trade. Never make trades with random parameters. Always
control your position size and your risk/reward ratio.

4. Control the time you spend on trading

This is important
especially if you are a full-time trader. The longer you sit in front of the
monitor, the lower your ability to remain in attention and think clearly will
become. Get used to assign yourself specific time intervals for trading. This
will help you achieve the maximum efficiency in trading and manage other tasks
in your life as well. 

5. Change your environment

Routine can be a
mood killer for everything. When you are a trader, you can enjoy a certain
level of mobility, so make sure that you change your position in space from
time to time.

6. Use the weekends

The end of the
week is a great time. Use it not only to restore energy and spend time with
your loved ones but also to review the past trades and strategize ahead of the
new week.

It’s a great idea
to devote an hour on Saturday or Sunday to looking at the weekly charts,
checking the upcoming events in the economic calendar and reading financial
media. Be prepared! This way you will feel confident and ready to act on
Monday.

7. Socialize

Trading can be
quite lonesome when you are focused on your ideas and strategies. Take time to
communicate with other traders. This will broaden your horizons and bring you
the joy of interacting with others. Nowadays there are plenty of social media
and platforms that will help you accomplish this task. 

8. Keep learning

Even if you
understand that learning is a lifelong process, you should be very practical
about it. Assign a fixed amount of time a day or a week to some educational
activity, for example, attending a webinar, reading a textbook, completing a
distant learnings course. This way learning won’t be just an abstract idea for
your and you will really improve your trading skills.

It’s not easy to
develop good habits. Don’t think of the tasks above as something unpleasant.
Think of them as things that will make your life easier. If you embrace them
without resistance, you will see that your trading becomes more consistent and
successful after 21 days or likely even earlier.

This article was submitted by FBS.

ForexLive

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