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4 proven technique to improve trading performance

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  • 4 proven technique to improve trading performance

    Having high expectations in any profession is good but setting up an unrealistic plan is very dangerous. Forex market might be open to all, still, people are having a hard time to save their investment. Protecting the initial investment is the main concern of many retail traders. If we want to pursue our career in the investment industry, we must know about 70% of the traders are blowing up the account. And only 2-3% are making some serious profit. Even after knowing these statistics, if you feel like trading the Forex market, you are in the right place. Let’s discuss 4 amazing ways that can boost your performance.

    Get into the market structure
    The first thing you have to learn in trading is the structure of Forex market. Getting into the market structure is knowing about it all its active participants. If you manage to learn about the participants of this market, you can easily know who the big players are. Start analyzing the big players and you will be able to learn the sentiment of them. Once you slowly realize how they think making some quick profit will not be hard. Though trading is one of the most complicated businesses in the world with some minor tweaks you can be a great trader. For instance, learning to think like experienced traders will give you a better picture of this market. Though this might a challenging task but over some time, you can easily develop these skills.

    Find your favorite trading session
    Having a fair knowledge of the different trading sessions adds great value to your skill. For instance, you will know which pair to analyze at a specific time. This also allows you to find high-quality signals in the trading platform. Though learning about the trading session is a little bit complex but if you read some books on the trading hours, the concept will be clear. But we have a little cheat sheet for your needs. If you think trading the major pairs is your priority, trade the London and Ney York trading session. Those who find it hard to analyze multiple the asset on multiple trading session should stick to the New York trading session.

    Use predefined stop loss and take profit
    Using mental stops in trading doesn’t work. You have to use predefined stop loss and take profit from your trades. While determining the stop loss for each trade, focus on the basic risk to reward ratio. Placing trades with 1:1 or 1:2 risk to reward ratio puts you in vulnerable condtion.1:3+ the risk to reward ratio should be your minimum target. You are here to make money in a hassle freeway. Increasing the risk to reward ratio in each trade significantly improves your recovery factor. This is one of the easiest ways to make a profit without getting yourself burnt. Instead of setting stop-loss based on an arbitrary number, use the candlestick pattern and key support or resistance level. Once you start using this technique, you can set a tight stop loss to your trade without having any hassle.

    Create a written rule
    Everyone is trading with a bunch of rules. But if you ask the traders to show the rules in a piece of paper, the majority of the traders will fail. On the contrary as a successful trader how to place the trade. He will not say single work rather he will show you his trading journal. This is a big difference between professional and novice traders. Though this is a very sophisticated business having some minor change in your currency approach can boost your trading performance to a great extent. Forget about the aggressive method and try to realize the importance of having fixed sets of rules. But make sure you never break these rules as it defines your success. Sticking to the written rule is a great art and you must master this technique.