Practice and self-discipline are two of the most important factors in the success of a trader. They also conduct self-analysis to determine the factors that influence their trading decisions and learn how to exclude emotions such as fear and greed from the equation.
Practice in the areas discussed below is essential for becoming a successful forex trader.
Decide on your trading approach
To be successful in trading a certain trading style, which each has its own unique risk profile, one must adopt a specific mentality and approach.
Consider day trading as an option, for instance, if you are unable to settle down for the night knowing that you have a position in the market that is still open.
On the other hand, you are more likely to be a position trader if you have money that you believe will gain from the appreciation of a trade over the course of some months and you plan to hold onto those funds for some time.
Be sure that your character is well-suited to the type of trading that you will be doing. A mismatch in personalities will inevitably result in stress as well as definite losses.
Choose a reliable broker and trading platform
In order to make an informed decision on a broker, it is critical to do your homework on the many options available with regards to Forex brokers in Kenya.
The policies of each broker must be familiarized with, as well as the process of building a market. OTC or spot trading differs from exchange trading in that it is not governed by a central clearinghouse.
The trading platform of your brokerage firm should also be adequate for any analysis you intend to conduct.
As an example, make sure that the broker’s platform can construct Fibonacci lines if you want to trade off of them. When Forex brokers in Kenya are good, but the platform is bad, it can be an issue. Get the best of both worlds.
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Stick to a trading plan
Before you enter any market as a trader, you need to know how you want to make your trade decisions. Understanding what information you need to make the right decision on whether or not to trade is essential.
For some traders, the optimal moment to make a trade is based on the economy‘s fundamentals and charts. Another approach relies solely on data analysis.
Consistency and adaptability are essential in any strategy you select. Your system should be able to adapt to the ever-changing market circumstances.
Keep a trading journal
In terms of education, nothing beats a hard copy. Make a chart and write out all the factors that influenced your decision, including the fundamentals. Enter and exit locations should be marked on the chart.
Describe your motivations for taking action, both rational and emotional, in the space provided. You can only master mental discipline and self-control by separating your trading from your habits and emotions until you’ve figured out how to objectively view your deals.
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