Forex trading is a great way to earn money online in your own time. Traders work for themselves, giving them the freedom to set their own schedule. This makes the transition into Forex trading easy, since it can become an ideal complement to another job. To make sure it remains enjoyable, however, successful traders need to prioritise their organisation, time management, and clear goal setting. Like any job, starting out on the right trajectory is critical to future successes.
New traders often make the mistake of thinking gains are measured only in currency. They often forget that profit/hour is the metric to pay attention to. This is especially true if a trader holds another full-time or part-time job while entering the exciting world of Forex. Here, the role of self-organisation is key. Setting a thought-out routine for the day or week saves traders from experiencing the headache of decision fatigue.
Each trading session should have a defined structure:
1. To start off, make sure you block time in your calendar and mentally prepare yourself by clearing other work and distractions away from your physical and mental space. If you find that your mind is filled with chatter about work, family, social obligations, or other responsibilities, keep a notepad on your desk to record thoughts that might interrupt your otherwise-productive Forex session. This way, you can return to them at the appropriate time.
2. Set a longer amount of time for a market analysis period. Some traders find that using a timer for this session helps them stay on track since it is easy to get lost in all the data. Make mini-goals and review your progress as the session progresses.
3. Monitor and record your trades. It’s useful to have a trading journal so you can learn from past trades and about your personal trading style. Make sure to check risk management parameters and exit signals, if you have established them, and note this in your journal.
4. Periodically make time for reviewing and summarising your weekly trading activities. Some traders like charting their progress at the end of each month, so they always know how their trades measure up to their monthly objectives. During this review session, note what strategy you used, how much time you spent on each subtask, and the results of the month’s trades. Avoid switching strategies every week! Consistency is key to collecting enough results to evaluate a strategy.
5. At the end of each session, write down one thing you did well and one thing you could improve. During the next session, you will be able to flip through your journal and note the successes and learning experiences you had before you continue your planning. This will positively reinforce you to identify better ways to structure future sessions.
As many traders know, it is necessary to track the amount of time and mental energy spent on Forex work. Free up time by creating alerts, eliminating the temptation to check your phone every five minutes to see how the market is doing. Constant checking takes up precious mental bandwidth and can make traders second-guess themselves. By automating notifications that tell you when certain chart patterns occur, when certain price levels are reached, or when trades are triggered, you can let technology do the monitoring for you.
Making gains over an extended period of time is only sustainable when a trader has a good plan and long-term goals in place. Set goals that focus on the process of trading – novice traders often try to set a monetary goal and are easily disappointed when they first venture into the market. Even more importantly, sometimes the environment of the market might make numerical goals difficult to achieve when opportunities are not available at the time, increasing the pressure to enter risky trades.
Lastly, your trading strategy must be flexible to adapt to changing markets and personal psychology. Make sure the timeframe you select for trading is based on your level of comfort with risk. For example, if you are open to overnight risk, trading off weekly charts is an acceptable strategy. If you prefer to avoid taking a position that exposes you to overnight risk, trading on a shorter time frame is preferable.
Keeping your trading journal up-to-date, maintaining a consistent market analysis schedule, and avoiding anxious real-time checking will keep you on track towards a successful career in Forex and life management in no time at all!