BeanFXTrader Mentorship Page
BeanFXTrader Mentorship Page will guide new traders on how to be better in their trading career.
First of all, new or potential traders must have it in mind that Trading Forex, commodities or indices is risky and the amount invested may be lost. This is the main reason why one should trade only the amount that one can afford to lose.
Many newbies quit trading their first year due to lack of adequate knowledge or skill which in turn leads to blowing of account (total loss of trading account balance).
However, seeking help from a mentor will always be a wise decision at the beginning and during the course of your trading career.
With a mentor, your journey to a successful trading career will no doubt take a less time.
A trader must put in mind the ultimate goal, which is Profitability and Consistency. Imagine that you invested the sum of $500 and at the end of every month, you make at least $50 profit.
This implies that at the end of the tenth month, you would have doubled your trading account balance.
However, to achieve $50 profit target at the end of every month, you will need to make around $2.5 every trading day.
A trader that does not have consistent trading plan will lose money and eventually fail in the trading career.
Generally, setting targets and goals is key to having a successful trading career.
Developing your own perspective of the market as a trader is very important.
What tools does a trader need? A laptop or a mobile device (android enabled) will be more appropriate.
Good internet source is also essential as you would not want a situation where you are disconnected in the middle of a trade/while trading due to bad internet connection.
-Of course, you will need to sign up with a good broker that offers low spread and a variety of products and services that will meet your trading needs.
-Meta Trader 4 or 5 application can be downloaded from the Broker’s website.
-For Newbies, downloading a demo account for practice purpose will be ideal at the onset.
-We have the Bull and the Bear market. Trading trending market is advised, while it is advisable to wait in a ranging market.
-Price quote will show the ask price and the bid price. The difference between the ask and the bid price for every currency pair is the Broker’s spread (commission).
-A trader must have a strategy or plan that works.
-Learning how to trade can not be compared to learning how to control your emotions when trading.
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Answer these questions before placing the first trade for the day:
What is my strategy for the day?
Do I have a plan laid out?
What is my trade capital/equity/balance like (high/low)?
How much profit do I intend to make on it at the end of today?
What is the maximum loss my trading account can bear for the day?
What is the maximum possible lot size I can use on my trading account for the day?
How many trades/positions should I place on this maximum lot size?
What is the economic calendar saying (is there any high impact news on the table for the day)?
What are the current trending currency pairs?
How many pairs can my maximum lot size or account balance handle?
Should I stick to my favorite pair (is it trending)?
When should I close for the day?
It’s not a new thing that most Forex traders fail because of emotional trading. Try out the following tricks while trading;
1. TAKE A WALK AFTER EACH TRADE.
Try walking around after each trade.
With the hectic nature of day trading, one can easily get trapped in the sea of emotions.
Walking away from your computer or mobile device screen is a deliberate break in your trading tempo. It is a physical action that you carry out in order to control your trading tempo. The act of walking away after each trade has a psychological effect of clearing your mind and reminds you that you are in control.
The Forex market does not pull you into a trade.
On the contrary, you can walk away from the market any time you want. This shows you are in control.
2. FIND OUT THE LEAST VOLATILE PERIOD OF THE TRADING SESSION.
Try reading a book during that time.
Attempting to trade in a congested/ranging market most of the time leads to frustration. You get angry with your trades/decisions at this time. You are also most likely to trade with emotions at this particular time.
The way out is to take a break especially when the markets are going nowhere.
However, do away with any material that is related to trading. Trading books or materials will most likely give you new trading ideas.
You may easily be motivated to try the new ideas immediately. This can lead to wrong trade decisions or distraction.
3. AVOID TRADING AFTER THREE CONSECUTIVE WINS OR LOSSES.
Three consecutive wins make you feel like a PROFESSIONAL already. You start to think that you cannot lose your trades anymore. The three wins make you feel invincible.
You take it to the next level by placing more trades than your account can carry.
Three consecutive losses on the other hand makes you feel like trading is not meant for you. You start to gamble. Your emotions get the best of you. You easily place revenge trades so that you can recover your loss.
When something happens three times in a row, it will be hard for one not to get affected by it. Overcome this situation by stopping your trade session after three consecutive wins or losses.
4. DON’T MONITOR YOUR PROFIT OR LOSS WHILE TRADING.
The number one factor that easily trigger trader’s emotions is the profit and loss dashboard. Some traders show off their profit dashboard just to prove their prowess or skills.
However, some of these profit result show-offs are demo account profit results.
When you follow the most important trading rule and have a daily loss limit in place, you are already protected from severe losses. This way, you do not need to check your profit and loss figure constantly.
Whenever you feel like checking your profit and loss for the session, read your trading rules.
5. ASK YOURSELF: “AM I SCARED?”
Fear is an intense and destructive emotion that amateur traders constantly have.
Whenever you are watch your trades play out, periodically ask yourself this question: “Am I scared?”
At any point in time, if your answer is “Yes”, simply exit your trades immediately.
Review your trading rules.
Reduce your trading lot size.
Repeat the above.
Keeping a Trading plan is vital to every trader. You trading plan may have the following;
- When you entered the trade
- Why you entered the trade
- Where you placed your stop loss
- How long you stayed in the trade
- Why you exited the trade
- Was the trade successful?
Try to keep journal of your trades. Avoid areas that cause bad trades and improve on areas that gives you good trades.
Risk management and money management also play vital roles when trading.
The following are articles published on this blog educate traders on how best to improve their trading life;
(Broker: Alpari … https://alpari.com/en/?partner_id=1244646)
(Broker: Exness … https://www.exness.com/a/t0q1u0q1)
(Broker: FXTM… http://forextime.com/?partner_id=4806145)