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Tuesday, 15 December 2015

Forex Trading Checklist

Forex Trading Checklist, Trading, Checklist, Forex, Blog, Entry, Trading Style, Accidental Mistakes, Trading, Prevent Impulsive Trading

Forex Trading Checklist


Trading Checklist


The aim of a Forex trading checklist is to prevent impulsive trading and accidental mistakes. An essential checklist for smooth execution of a basic Forex trading entry is presented below. Feel free to build on it and modify it according to your trading style.

Do you already know the basics of forex trading when you get into it? Those basics are the necessity if you want to win in forex. Otherwise, your forex investment may down the drain. A lot of forex traders who failed in trading all the time is because they lack planning.

FOREX TRADING STYLE

That's the primary homework that all traders must do. Without any planning, you will probably unable to see what and why you are trading.

1. What skill level are you in? If you are a beginner in forex trading, then you might want to take a step at a time. Do not rush to trade because a good forex strategy is always using probabilities. In the first place you should know that in currency trading business, there are no certainties, only analysis, and judgment no matter what kind of forex trading systems you are using. Professional traders are good in high probability trades by using a simple trading strategy.

2. Are you a risk-taker? I have to remind you that forex trading involves some risk and do not go into trading if you can't take a risk at all. Like I have said, trading will definitely involve some losses because you can't win all the time. But what I can assure you is that if you take the right approach in trading and follow all the rules, you will have much more winners than losers.

So be prepared to take some risk and make sure that your trading capital can withstand it. Minimize risk by looking out for high possibilities trades and not by quantity trades.

3. How do you target profits? If you want to trade forex the profitable and correct way, then you will have to follow the forex trading strategies that I give advice for. I recommend traders to have a health risk to reward ratio of at least 1:2, which means that if you risk 1 pip, you should target 2 pips of profits.

This may sound quite difficult to achieve when you are a beginner, but I can tell you that once you get experienced in the forex market, then you should not find that too tough. With a good risk to reward ratio, then you can develop a forex strategy that allows you to achieve that, e.g. a more advanced intraday or swing trading strategy.

Below are some of the forex tips and important questions you need to answer yourself if you really want to succeed and make money online.


Here is my Forex Trading Checklist


1. Are you risking a fraction of your trading capital?
2. Are you trading with the trend?
3. Are you trading from an area of value?
4. Do you know what's your entry trigger?
5. Do you know where to exit if you're wrong?
6. Do you know where to exit if you're right?
7. Do you know how to manage your trade?
8. Are you following your trading plan?

After these steps are in place I then place the trade and log them in my forex trading journal. I think you will find that something as easy as a simple forex trader checklist can dramatically improve your trading. Trading doesn’t have to be complicated to be successful. It is best to keep it as simple as possible so not to outsmart yourself.

Forex Trading Checklist