Work can be stressful and even frustrating when you start.
Any activity in which you are directly exposed to the risk of making money with effort can only give you fear, and in some cases potentially a lot of fear.
But it doesn’t have to be like this.
In addition to the financial risk, trading is stressful because there are millions of different ways to do so. You can cut your scalp, swap swings, use techniques or basics, or both; the table is continued and lasts for miles.
Presentation of too many options can be stressful in itself.
I think swing trading on the highest slots using simple pricing actions to work better. It offers some of the highest ratings I’ve seen in the market, not just in currency. But there is another factor that has helped me over the years and this is my process. You see, I love to keep it simple, and the process I go through every week is no exception. Maintaining a minimalist approach to trading helps me keep my head away from the clouds and my emotions.
1. Identify the most important key and resistance
The first thing to do when opening a new map is to draw the most important layers. These can be horizontal areas, trend lines or a technical model such as a channel or angle.
This gives you a model of what to do next. Without them, you will quickly follow the market, which is the opposite of what you want to do.
You always want to wait for the market to come to you. So when these levels are set, it’s just a matter of sitting with the levels set and watching the market reaction when it gets there.
Here are some important points to keep in mind during this exercise.
Start with daily and weekly breaks
If you notice that there are support and endurance, it’s a good idea to start for a long time. A top-down approach will allow you to identify the most important areas and ignore others.
Never force a level to match.
If the area of support or resistance is not obvious, it is probably not worth pointing it out in the table. This goes hand in hand with my earlier point on the use of a minimalist approach.
In addition, you’re more likely to find high-quality settings if you only pay attention to the most obvious layers. It’s no secret that the reliability of a candleholder begins with the degree of support or strength in which it is created.
Second, keep your watch list.
One of the best ways to reduce stress and find more profitable businesses is to keep an observation list.
Consider your playbook for next week. Here you create your plan of attack for each week, including the currency pairs you observe, interest rates and even market defects.
You are the only person responsible for your business. No boss will tell you when and where to act or how much risk; it all depends on your shoulders.
That’s why it’s important that you have a plan before the start of each week.
Once you have a list of observations, the next goal is to follow it.
Check regularly (and be brief)
Many investors fall off the wagon. They draw their key levels, update their watch list, and when the market opens, they sit there and watch their screens for hours.
I spend no more than 30 seconds on any chart. It’s too easy to see what my subconscious wants me to see, something that has to do with my money.
Although I would like to believe that my subconscious means the best to me, experience tells me otherwise.
If you think I can only find adjustments in five or ten minutes because of my ten years in the foreign trade, you might be surprised. After drawing the levels in step 1, you no longer need to know whether to act or remain on the sidelines.
Above all, however, to keep analytical meetings as brief as possible. The more time you feel in front of the screen and look at the graphs, the more likely it is that you will invest too much and eventually waste the money.
Update your journal
You cannot expect to improve your trading performance if you do not monitor and measure the results.
This is not only an opportunity to track your performance but also to take note of what you have done well and what can be improved. This is essential information to have, especially in such a lonely enterprise where you are the only one between victory and defeat.
The method you choose to keep track of these details is up to you. It can be as simple as a notebook or as complex as an online application.
Whatever you choose, it must be practical and easy to update. If it is not easily accessible, it is unlikely to remain up-to-date.
Wash, rinse and repeat
The last step is to pick up what you just finished and start again next week. Setting up such a routine is an excellent way to structure your transactions, which will inevitably contribute to promoting profitable habits.
Unless you plan to add new properties to your list, you don’t have to complete the first step at the beginning of each week. However, I recommend that you periodically review and if necessary adjust the accuracy of your key levels.
You should also add new levels of support and resistance as the markets on your list progress. The good news is that you don’t have to do it often if you use the 4-hour and daily times.
A simple routine like the one above adds a strong dose of discipline to an otherwise illegal world. This way you avoid these unwanted emotions and can exchange what you see, rather than what you want to see.
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