Almost everyday I get emails asking me:
Q: What is my daily Forex trading routine like ?
A: Here is the answer, which may be long-winded but I will try to keep it sweet and simple.
Obviously, I trade Forex full-time and in a professional capacity. First and foremost I don’t listen to, read or necessarily follow much of the Forex Trading news. I try to limit myself to what I watch, hear or read with regards to Forex. One of the most important things that “I” believe a new or struggling Forex Trader needs to do is to stay away from the Forex charts and chatter. This is one of the reason why I don’t have a Forex Forum. I can’t tell you how many people I’ve seen living in the forums and at the same time they can’t trade themselves out of a wet paper bag. If you’re serious about trading Forex then adhere to my motto, which is to get yourself an experience Forex Mentor or Coach and listen to what “They” have to say about Forex. “All Professional Athletes have coaches, why should trading Forex be any different?”
Okay I am digressing a bit, so let’s get back on track. In the morning I basically look for one thing that will ultimately affect any Trader’s performance. Do you know what that is? It’s call Major News Release. I don’t make new trades where there is Red Flag news release coming up. You’ll have to decide what Red Flat news releases are and which ones you’ll want to avoid. No matter how good a trade looks, if it is on my Forex Radar then I don’t trade it until AFTER the news has been release and the trade set-up is still valid. This is a process that I do cover in detail in my Forex Mentor Program.
If you recall earlier I mentioned that I it is important to stay off of the charts as much as possible. So one of the things that I teach my students is to pick a time-frame (or two) that you are able to trade religiously. For most it will likely be the Daily or Weekly charts. Depending on your work or school schedule you could even trade the 12 Hour or 8 Hour charts. Unless you’re trading full-time the 4 hour charts are not realistic to trade for most people. Again, whatever time-frame you decide to trade make sure you can give it your full-time and commitment. Next you’ll want to decide which chart to trade, again, I wouldn’t suggest you do a full boat load of charts and the only way you’re going to find out which ones are up your alley is for you to have back-tested them extensively. You need to know how the pair reacts, like you know the back of your hand. Your future livelihood (may) depend upon it.
One of the things that I want to stress here is that A LOT of Traders have their priorities mixed up. One of the key reasons that they are not successful Traders is because they haven’t (and often times not willing to) put in the necessary (hard) work on learning how to trade in a consistent and profitable manner. So many times Traders are looking for the immediate gain(s), and therein lies a critical problem, and more importantly why you/them aren’t successful in trading. A weak foundation will NEVER build a strong house.
I think it’s best to stop here, but I will continue my response in a future post. However, let me recap what I have laid out this far:
- The is a lot of wisdom in finding and relying upon the knowledge and experience of a Forex Mentor/Coach.
- Be very careful to what you read and/or listen to regarding Forex and the Gurus. Before you make a trade make sure you know there isn’t any major news releases coming. Be very careful of listening and taking advice for novice traders especially those on Forex Trading forums.
- Limiting yourself/exposure on the charts can help your Forex in a tremendous way. Plan your trade(s) and trade your plan. You watching the charts or your trades all day long is not going to make them move in the direction you’ve planned. This coincides with my previous article: “What If you did this one thing?“. You have no control over moving the market. The best thing you can do is make sure that you planned trades are high probability Forex trades. Learn to trust the process and your training.
- Become a professional with one trade catalysis. Become a back-testing enthusiast. It is said that Pro Traders spend their time back-testing and perfecting their trading strategies and I concur.