Many of our traders here at Exness wonder what they can do to become more successful, and that’s for good reason. Seeing other hugely profitable traders who consistently generate returns from the forex market makes everyone wonder what it is the pros know that they don’t.
To help you get one step closer to becoming one of those consistently profitable traders, we asked some of the best traders we know what they do to maximize their performance at all times. Here we listed five of the top answers we got to that question.
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Get up early!
Getting up early in the morning is not something that just traders do, but something that nearly all successful people have in common.
Some of the most successful people in the world often say that getting up early helps them be more productive, makes them feel more at ease mentally, strengthens their resilience, and drastically improves their health.
So, the question really becomes: why wouldn’t you want to wake up early?
Once you have learned to get up in the morning, implementing a daily exercise routine should be next. This is another of those habits that nearly all successful people say they follow, and it really seems to work!
Even if you don’t want to put the time aside to go to a gym, doing a few jumping jacks, sit-ups, and push-ups at home in the morning goes a long way. Or if you live close to a park or a forest, go out for a run. We can almost guarantee you that better trading results will follow!
Read the news
Even if you’re a purely technical trader and don’t base any of your trades on fundamentals in the market, it’s essential to know what goes on around you. This is particularly true in the forex markets, where economic events can cause sudden selloffs in many symbols.
Check the economic calendar each morning before you start trading. If something big is coming up and predictions vary wildly, consider avoiding the symbols affected on that day. Keep in mind that fundamental events in the forex market will render even the best technical trading strategy useless. Unless you’re following a specific news-trading strategy, avoid trading during major economic news releases.
Stick with your strategy
A very common mistake among new traders is to fall into the vicious cycle of “strategy hopping,” jumping from one strategy to another, constantly chasing the “holy grail” that many new traders believe they will eventually find.
We’re sorry to disappoint you, but most experienced traders agree that it doesn’t really work like that. Instead, what these traders do is that they stick with their trading strategy through both losing and winning streaks. They do this because they know that it’s essential to keep trading in order for the statistical edge of the trading strategy to play out – a phenomenon known as “the law of large numbers.”
Without a large enough sample size, the law of large numbers will never work the way it’s intended to, so make sure you give your strategy the chance it deserves to prove itself.
Separate charting from trading
Another thing that many successful traders do is learn to separate their analysis and charting from the actual trading. Charting is the reading and analysis of forex charts — usually line, bar or candlestick charts — to test your strategies or review historical data. It’s important to realize that charting and trading are in fact totally separate activities, and should not be mixed together.
Charting and trading together in the same session lead to impulsive trading. For example, you may open a position simply because you get tempted by a sudden market move you see on the charts. These are not well-thought-out trades that follow a strategy, and should thus be avoided. Instead, manage your time so that you dedicate one session to analysis and charting, and one session to actual trading where you can bring your strategy into play.
Separating the two would help you make more rational trading decisions, without having emotions influence your judgement. Sadly, human instincts and emotions easily become our main enemies when trading, and we need to do everything we can to keep those factors under control.
Good habits start now
So, there you have it – 5 habits that all good traders swear by. Nothing fancy or overly complicated, just simple rules that everyone can follow.
Now’s the time to enhance your own trading habits!
Your 4-step guide to opening a trading account
Step 1: Getting registered
It's very easy to open an account with Exness. Click here to open the sign-up page in a new tab. If you want to get everything done in the next 10 minutes, be sure to have a credit card, ID, and, proof of address by your side. You can choose to open a demo account without these things. Either way, everything you need to know is here in this two-minute video. Pause the movie as you go through the first three steps.
Tip: Account type depends on the amount you wish to deposit. Leverage is effectively an interest-free loan that the broker offers. It allows you to make a large investment from a small deposit. If you are looking for high profit with high risk, a higher leverage might be right for you. If you prefer slow-burning safety with lower results, then keep your leverage low. You can never lose more than you have, but higher leverage means faster results... both good and bad.
Step 2: Prove who you are
Exness takes security very seriously, and they check every client signing up. Just like opening a bank account, you'll need to prove who you are before getting access to the global markets. Watch this one-minute video to see how.
Tip: While you're waiting for your real account to be approved, open up a demo account and start getting to know the trading platform.
Step 3: how to get access to the market
Trades are made using the award-winning MT4 trading platform. Inside the box of the demo or real account you'll see a gear cog. Click the gear cog to make a deposit. Use the passwords provided in the email. Click the gear cog again and select SIGN IN TO MT4 WEBTERMINAL then follow this one-minute video. You're about to make your first virtual trade on the real markets.
Step 4: making a trade
As a default, the top currency pair on the list will have an open chart. Right click on the chart and select the “close” option.
As a professional trader, selecting the right pair requires some research. For a first-time test, any pair will be sufficient. Drag a pair from the list of currencies on the left side of the trading terminal. The old saying goes, “what goes up, must come down.” Obviously, this principle goes the other way too. Your mission is to find a moment when the price direction is going to swing or reverse. If you feel the price is about to go up (bullish), then BUY, if it looks like it’s been trading high and the price has started a downward (bearish) trend, then SELL.
There are many ways to open your trade. You can select from the buy and sell options on the top left of the chart. Preferably, double-click the currency pair on the list. Right click on the chart when you’re ready to make your first trade. Time to set the volume depending on how confident you are in the direction you are forecasting. This is the perfect time to set your stop loss and take profit. Click the arrow to the right of the stop loss and take profit prices.
Note how the blue and dark red lines in the popup graph sit above and below the buy(ask) and sell(bid) price. In the example, we traded long (buy) and got a message confirming the order was successful. If you get an error, your volume was too high for your balance, or your stop loss/take profit was too close to the spread. Remember, every order starts as a negative because of the spread. Be patient. Your take profit will activate when the time is right, and your stop loss is protecting you. To close an order, you have three options. Click the X on the right or right-click the order. If you double click the order, you can close or modify the order.
Congratulations! You now know how to make a trade. Forex trading can be an exciting way to spend your free time, and you'll actually learn some real-world skills that will serve you well throughout your lifetime. Be patient, learn, and who knows, you might one day be one of the lucky few full-time traders. How will you spend your day?
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