Create a Trade Plan and keep a Trading Journal
You may have heard the saying. Plan your trade, and trade your plan. It seems almost too obvious to mention, but this is one of the most important trading tips to keep in mind if you would like to trade forex like a Pro does. And the reality is that most traders either don’t have a trading plan or else if they do, they typically do not stick to it.
You may be wondering why you need a trading plan in the first place? Well, I have to say, forex trading doesn’t have to be complex, and you certainly do not need to have a Phd in math or economics to be a successful trader. But having a trading plan, that outlines all the fine details that go along with your trading strategy is essential in keeping you focused and accountable. But it doesn’t stop there. Once you have a detailed trading plan, then you must in conjunction with this, keep a trading journal of all trades taken and the corresponding results of those trades.
I suggest you keep a printed record of all your trades. Try to print out the chart and make notes of what you were thinking when you initiated the trade, and where your entry and exit points were. Make any other pertinent notes as well. This will help you to better understand your thought process and ultimately you will become your own trading coach by improving the processes behind your trading. As traders we must hone our strategy and learn to become more disciplined with our execution. A detailed trading plan and frequently updated trading journal is a must if we want to accomplish this.