9 Tricks Of The Successful Forex Trader (2)

Let’s continue with the tricks where we stopped.

Step four. Choose a longer time frame for direction analysis and a shorter time frame to time entry or exit.
Many traders get confused due to conflicting information that develops when looking at charts in different time frames. What shows up as a buying opportunity on a regular chart could, in fact, show up as a sell signal on an intraday chart. Therefore, if you are taking your basic trading direction from a regular chart and using a daily chart to time entry, make sure to synchronize the 2. This basically means, in the event that weekly chart is providing you with a buy signal, wait until the daily chart also confirms a buy signal. Keep your timing in sync.

Step five. Calculate your expectancy.
Expectancy is the formula you employ to determine how reliable one’s body is. You should go back in time and measure all your trades which were winners versus your entire trades which were losers. Then determine how profitable your winning trades were versus how much your losing trades lost.
Take a look at your last 10 trades. If you haven’t made actual trades yet, go back on your chart to where your body will have indicated that you should enter and exit a trade. See whether you might have made an income or a loss. Write these results down. Total all of your winning trades and divide the clear answer by the quantity of winning trades you made.

Step six. Focus on your own trades and learn to love small losses.
After you have funded your bank account, it is important to consider is that your cash is at risk. Therefore, your cash really should not be needed for living or even to pay bills etc. Consider your trading money as if it were vacation money. After the vacation is over your cash is spent. Have the same attitude toward trading. This can psychologically prepare one to accept small losses, which will be key to managing your risk. By focusing on your trades and accepting small losses instead of constantly counting your equity, you will be a whole lot more successful.
Secondly, only leverage your trades to a maximum threat of 2% of the total funds. To put it differently, if you have $10,000 in your trading account, never let any trade lose significantly more than 2% regarding the account value, or $200. In case your stops are farther away than 2% of your account, trade shorter time frames or reduce the leverage.

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