How can you plan for better Forex performance?
A plan, without a doubt, is something that you must have in order to reach your goals. You can not move about with directions and hope to reach your destination. Coming up with the best plan that suits your goals can be hard, though. You gotta have specific steps to follow and calculations of risk and things like that. It’s no fun but yields a great result.
No.1 Thing to do, Is To Figure Your Goals..
what do you want to achieve? 50% profits monthly, a higher capital? or simply maintaining your profits each months?
for argument’s sake let’s say you want to earn 20% of profits every month.
If I want to make 20% every month and I have 1000$, that’s 200$ of profits.. How can I achieve that with minimum risk?
Do I have a strategy? (Yes) Is it good and do I have experience with it? (The answer must be YES)
If so, then you’re half way there because having a good entry and exit system is half what forex requires to provide you with profits..
You need to calculate your risk.. So, If you trade everyday and possibly enter 1-2 deals then that would be 5-10 trades per week, (MAKE THAT YOUR LIMIT OF ENTRIES) so you don’t enter more than 10 deals per week and your risk in each trade should be limited.. (HOW MUCH?) it’s safe to say that a percentages of 1-5% of risk in a deal is okay.
So, you can risk anywhere between 1-5% (let’s say 3%) and you enter a max of 2 deals..
ONLY PICK WINNING TRADES ( Trades with a high probability of winning)
No matter what people may have you think that forex is a science, It’s not.. it’s a game of probabilities and whoever makes the right prediction wins but it doesn’t have to be gambling ( your predictions can be based on some sort of formula liek a strategy, an indicator or your eyes and brain)
Seriously Important (Remember these things)
-You’re a machine that adheres to the rules like nobody’s business, You don’t stray from your plan
-You don’t get greedy/ you have a target, you reach it and that’s it.
-You trade at specific times of the day and no more
-You DO NOT over trade, finish your session and leave the desk
Last but not least…
Stick to your plan like glue.. One day of results or a week doesn’t define who you are. Months will determine what kind of a trader you’re.