Who would not like to be a forex professional? Knowing about the course of things and being blessed with successful trades, you may also be lucky. What distinguishes a professional trader? What properties should he have and how should he manage the trading? This is explained in the following text.
Each one of the work investigates the efficiency of its trade. Especially when trading on Forex, this is particularly important as the trader moves on a risky parquet. The profit of weeks is quickly depleted in a short period of time. The processes should therefore be subject to constant examination and any possibility of improvement should be recognized. The trader is open to various possibilities. The trading journal and the Tradingtagebuch are the most widely used.
The trade journal
This journal can be run with a simple spreadsheet. Each trade is recorded with its key figures. These could be, for example, the following: currency pair; Open (date and time); Close (date and time); Open (course); Close (course); Lot size; Stop loss; Take profit; Profit/loss; Daily chart; Technical indicators and fundamental key figures. With the help of your current trading journal, traders can analyze your trading system and thus quickly identify weaknesses and react immediately.
And if the trader takes the time for an extensive online trading analysis once a month, for example, he may find that his trades in the Daytrading (smaller time units) are not performing as well as those in longer-term trading. His online trading gets more system, and he deserves better and with less time. In this way, he will be able to identify with the time which entry signals work best, with which stop technique he can gain the biggest profits and how much money he is able to risk per trade. It should be noted that a handful of trades, of course, are not necessarily meaningful in order to already make a judgement about his system. But this is how a normal trader becomes a forex professional.
The Tradingtagebuch of the Forex professional
A trading diary is a useful tool for controlling and further developing your own trading strategy. In addition to the trade journal, the trader should keep this diary by holding the key figures, recording the thoughts of why he has received this trade at all. He can supplement his records with a short report of his emotions, his frustration or his euphoria at trade. He can provide the records with a Screeshot of the charts. He should always go back in his diary as soon as he has a quiet minute and he will find that all these experiences – some of them painful – are a present level of knowledge.
On days when emotions are loaded, traders must be extremely disciplined and strictly abide by their rules, otherwise they will experience a fiasco on that day. The goal of the diary is that a trader recognizes his faults by reflection and avoids repeating certain errors. As everyone knows, it is not easy to make mistakes. Running the trading diary also costs time. But the effort is worthwhile if not on the spot. Repetitive errors that creep in over time cannot be detected without a trading diary.
Forex Professional Trading
Trading is like treating a business. This is the only way the trader will have longer-term success in trading. The business plan for foreign exchange trading is the trading schedule. This plan should include the following points: the strengths and weaknesses of the trader. The expectations of the foreign exchange trader, which he associates with the business, capital planning (IS-capital, necessary expenses); Define risk and capital management; Trading and worst case scenarios. With the trading, the trader determines when he uses, for which trading period, with what risk limits, how much money per trade. He can define in this plan which technical tools are used to automate sub-areas of the trade.Advertisement