Lets start with ten rules that will make you a successful trader.
1. Use good hardware with fast internet connection – slow internet connection will cause delays and for Day Trader the good price is the most important condition for a profitable trade.
2. Always keep up with the financial market news – successive traders are always up-to-date on the events that drive markets.
3. Have an action plan, be honest with your achievements, and always have an idea how to limit losses and when to reap the profit.
4. Plan your morning well – get up early and fine-tune your mind. Use morning for meditation or exercise to be in an optimal mental state.
5. Eat healthy – the best traders stay well hydrated throughout the day by eating high energy foods.
6. You must be highly disciplined and patient – test your strategy by anticipating market movements and then comparing them. Trust your instincts and believe that one day you will acquire the skills you need for successful trading.
7. Use the demo just to get to know the platform – the difference in demo trading and the real account is mind-boggling. Carry a real-life experience, this will build your psyche well.
8. Always start with a minimum volume of funds at minimum leverage levels. Once you’re sure your strategy works, go to the next level.
9. Never trade under the influence of emotions – emotional trading leads only to losses.
10. Focus on only one currency pair until you start making regular profits from it.
‘The early bird catches the worm’ – a variation of this saying exists in almost every culture. And it is this sound wisdom that every successful forex trader should take to heart: learning to attack the day from the first moment is perhaps the most important habit that any trader can adopt.
An early start aids your energy levels and concentration. Just like any other part of the human body, even the sharpest of minds will become fatigued by work through the day. In a highly technical – and often stressful – working environment such as the currency markets, forex for beginners can prove to be a demanding and mentally exhausting pursuit. Trading when you are at your sharpest is, therefore, a matter of common sense.
However, mental stamina is just one factor. Rising early will also provide a greater degree of flexibility in your decision-making processes, too. Learning techniques, which optimize the way you use the finite time that you have at your disposal, is important for both your success and your health. These techniques of self-discipline and peace of mind are most commonly known as ‘mindfulness’.
Mindfulness Activities to Master
There is a wealth of scientific evidence that suggests that the first two hours of your working day are the most productive; even the most focused and motivated of individuals will experience a natural slow-down in their accomplishments by around 3pm.
As such, the earnings you generate at the start of the day should be considered the core of your day’s trading: everything that is achieved later on may be considered a welcome bonus. However, what are the practical steps you can implement to guarantee early morning success stories?
Eating healthily is always sensible, and one should never skip breakfast. Instead, opt for a healthy option that affords slow release energy throughout the morning, such as oatmeal, granola, or porridge.
Many successful entrepreneurs rely on the energy boost that they receive from an early morning exercise regime. Whether you choose walking, running, weight training, or yoga, a program of exercise first thing in the morning energizes, rather than exhausts, the body. Many experts count on technology and personal devices to help them implement their morning exercise routines. If you struggle to adhere to your schedule, this can be a useful aid.
Next comes mindfulness itself.
Spend ten to fifteen minutes before work to establish your goals for the day, focus your mind and levels of concentration, and put aside other distractions. Fifteen minutes of mindfulness meditation enhances your focus and will benefit your attention to detail when you require it the most. Put simply, 2-5 minutes of focusing on your breath and surroundings can help put your day back into perspective.
Finally, make a habit of achieving.
The most successful forex traders have learned to set small achievements into their 20-minute morning routine. This can be something as small as making your bed or answering all of your emails before 8am. Whatever you choose, select one task that you complete right before you start work. It is the initial accomplishment that the rest of your day is built upon.
Beyond Your First Mindful Morning
Of course, once you have established a successful routine, the next stage is to repeat that same pattern of mindful preparation each and every day. Some high achieving individuals, including Mark Zuckerberg and Albert Einstein, have taken the practice to an extreme, by wearing exactly the same clothing every morning, so that their mind does not become distracted by the trivial concern of choosing which clothing to wear.
But if you’re a sucker for fashion then, relax, there are a plethora of other ways to be foster your disciplined mind. While it is not necessary for a forex trader to select a uniform, the practice acts as an illustration of the mindset of successful individuals: they clear their mind of all distractions and help their concentration.
So, rather than wearing the same clothing every day, commit to the same breakfast; the same ten minutes of meditative thought; the same ten minutes of exercise. Every repetition of a twenty-minute morning routine will reinforce the benefits of mindfulness, in your thoughts and conduct.
A mindful approach will, in turn, enable you to better realize each of the other Ten Commandments of a successful forex trader.
Source: Bloomberg Pro Terminal