Every successful trader has reached a point during their career where they were ready to throw in the towel. Sometimes, finding the courage to persevere can be much more daunting than quitting altogether. But the ones who push forward are the ones who discover whether they truly can be successful as a trader! So, if you’re thinking of calling it a day, why not give yourself one more chance to achieve the goals you set out to reach?
Here are 3 Forex tips to try when you’re feeling discouraged:
1. Take a Break
The worst thing you can do is make a drastic decision in the heat of the moment, like after making a loss, or even a profit, on a trade. Emotions run high when trading, and these feelings can truly cloud your judgment and interfere with your inner rational trader. But every trader has been in this position before, and there is a rather simple way out. Take a break!
When you create a little bit of distance between yourself and the issue you’re grappling with – in this case, why your trades are not as successful as you’d wish them to be – you’re allowing yourself to look at things differently. Rather than continuing to push and make the same mistakes over and over, taking a break can bring clarity to the issue. Whether it’s 24 hours, a week or a month, if you need time to reset, then take it!
2. Realign your Perspective
If your approach to trading hasn’t been reaping satisfactory results, then it’s time to reassess your objectives. Begin by listing your motivations to trade and your goals. This will ensure that everything which follows will help you get closer to those goals, which might have changed since when you first started trading. Next, re-evaluate the tools you use and why you use them, such as stop losses, take profits, economic calendars, and signals. Figure out what’s working for you and what’s working against you and remember to tweak your approach to align with your goals!
3. Make a Trading Plan
If you followed the first two tips well, you should be able to put your new, fresh perspective together to make a concrete plan. This is when you will be ready to re-enter the markets with newfound knowledge to start trading successfully again! But before you do that, you need to write up your trading plan. Like with any venture involving money and risk, you need to prepare a solid plan for your project to become profitable.
Your trading plan can include anything from how many trades you want to open per week, to the amount of money you want to trade with and even the number of hours you want to dedicate to learning. It can also determine how you want to use Stop losses, take profits and leverage in your trades. Last but not least, your trading plan can include tools such as an economic calendar and free trading signals offered by LonghornFX.