Key Steps To Prepare For Forex Trading

Alexander Graham Bell famously said, “Before anything else, preparation is the key to success”. This is true for many professional fields, be it soccer, archery, or online trading. Forex rookies in South Africa have ample opportunities to learn. Brokers provide tutorials, articles, and other helpful content.

However, preparation is not only vital for novices. Even experienced traders begin their day with preparatory steps. It is not enough to jump in once the market opens. You should spend time to get everything set, including your mind.

What Successful Traders Have in Common

Pros get ready for every trading day. Consistent profits require much more than pressing the right buttons at the right time. You need to see the bigger picture and pursue a solid strategy. Forex superstars share these strengths:

  1. superb pattern recognition,
  2. rigorous self-discipline, and
  3. the right mindset.

All of these skills may be developed through training. Learn what is Forex trading, and take advantage of opportunities in South Africa. FXTM and other reputable brokers provide a wealth of educational material. In Forex trading, your knowledge is your main weapon. There are two key systems of analytical work.

Fundamental Analysis

Currency rates are affected by a wide range of events of both political and economic nature. From domestic policies to geopolitical tensions, the scope of potential factors seems too broad to take in. However, the economic calendar embedded in trading terminals, all relevant news is condensed into handy forecasts. Some of the most important indicators are GDP, interest rates, unemployment, trade balance, and manufacturing.

Technical Analysis

Adherents of the approach analyse recent market data to make predictions. No trend is seen as random. Traders focus on volatility and strength of trends, support and resistance, momentum, and other features.

Psychological Preparation

Do not disregard the value of mental preparation. It is bound to accelerate your learning curve, and help realize your potential to the fullest. Here is what you should do.

1.   Shower

This may seem like a trivial thing, but showering has a deeper meaning than just making your body clean. It activates your central nervous system, so you feel fully awake and ready for a full day of intense critical thinking. If you are a morning person, make it a habit to get up with the sun. This way, you will accomplish more.

2.   Exercise

Many successful traders start their day with yoga and meditation. This helps to stabilize your breathing and control emotions that could influence your trading behaviour. Meanwhile, your body will be better prepared for hours of sedentary work.

You could also spend a few minutes visualizing your trading strategy and goals for the day. A combination of these steps will program your mind for success. If you aren’t keen on exercising, at least do a few stretches.

3.   Review

Do not think you can just turn on the laptop and start trading right away. Take time to think of your prior performance, and see what should be changed. Such evaluations must be carried out regularly — at least, weekly. Consistent success does not entirely rely on your skills. It is important to see what lessons can be learnt from past experience, and incorporate them into your everyday practice.

This is true for many professional fields beyond finance. For instance, soccer coaches watch recordings of their team’s games, analysing what went right and wrong. Poker stars make notes on game techniques, decisions, and their outcome. For Forex players, having a trading journal could be a great help. Keep screenshots of your trading moves and review those from time to time.

4.   Mindfulness

Traders often fall victim to the same human penchants. It is not easy to suppress the natural urge to take a shortcut, to make impulsive decisions or choose the easiest way out. Develop your mindset, and psych yourself up before every trading day.

Be aware of your own psychological inclinations, and the consequences they may have. Trading is more than just pressing the buttons at the right time — it requires composure and self-awareness.

The Bottom Line

Profitable trades are based on knowledge of the trends and the ability to foresee market movement. Consistent achievements require thoughtful preparation — both physical and mental. Start your day feeling fresh, and it will be easier to make the right trading decisions. Sharpen your mind like a samurai sword, and manage your funds thoughtfully. Self-control and discipline will bring impressive gains.

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