5 Trading Tips You Need to Start Using in 2020
• There’s no shortage of Forex trading tips online these days. A quick online search will inevitably provide you with an endless supply of tips to help with your trading.
• However, I noticed that many articles were repeats. On top of that, most of the materials only skimmed the surface of their topics, making the learning experience less than ideal. This realization inspired me to create today’s post.
• I’m by no means promising that all 5 Forex tips below will be new to you.
• What I am promising is that you will learn something new from this post. Not only have I hand-selected the most useful trading topics, but I have also explained each one in considerable detail.
• This list comes from more than a decade of trading the Forex market. It’s not exhaustive by any means, but it will give you an excellent starting point from which to beat the competition.
• Ready? Let’s get started.
1. No Loyalty Is a Good Trait
The best traders can change their opinion about a particular market in the blink of an eye. They understand that loyalty to one viewpoint can be disastrous to their bottom line. In life, loyalty is a good thing. We expect our friends and family to be loyal and offer the same in return. My dog, for instance, is loyal to a fault.
But in the markets, a bias or loyalty to a certain position can get you in a heap of trouble.
I can’t stress this Forex tip enough!
As a Forex trader, you want to allow the market to do the talking. If it closes above or below a key level, you need to take that into consideration.
It doesn’t matter whether you were bullish or bearish yesterday. The only thing that matters is what the market is doing today.
The market is fluid, so your opinions about what is likely to happen must also remain fluid at all times.
If you try to stay rigid in your views and opinions, you will eventually break.
2. Focus on the Process and the Profits Will Follow
This is one of those Forex trading tips that I cannot stress enough.
If you want to become consistently profitable (which I assume you do), then it’s imperative that you stop focusing on the profits.
Every Forex trader wants to make millions of dollars. That’s nothing new.
But how many retail traders make it happen?
I’ll bet it’s less than 1%. In fact, I’m sure of it.
One thing that separates the 1% of millionaire Forex traders from the rest is that they aren’t focused on making millions. Heck, they aren’t even focused on making thousands.
You know what they care about instead?
Trading process
They prioritize quality over quantity trades, and do not risk more than they’re comfortable losing. Those are the things that allow these traders to succeed
3. Trying Harder Is the Worst Thing You Can Do
Yet it’s also one of the most difficult to implement.
Forex trading is a paradox. On the one hand, you have to devote a crazy amount of screen time to become successful.
But on the other hand, trying harder will leave you a trading loss or worse, a blown account.
That’s because the market isn’t on your schedule. It does what it wants when it wants.
You can’t force it to offer favourable setups or play out in your favor, regardless of how much effort you apply.
In fact, the harder you try to find a favourable setup, the more likely you are to walk away with a loss.
Instead of trying harder to find setups, put more effort into your technical analysis.
Spend time learning how to identify the best levels possible. Understand what a market’s highs and lows can tell you about momentum. Learn everything there is to know about risk management.
Applying more effort to those areas can be a game changer. On the other hand, exerting more effort trying to find favorable setups or make a trade profitable can be devastating.
4. When in Doubt, Do Nothing
Good trading is about having confidence in the process and conviction in the setups you take. If you don’t have those two things, you will find it difficult to remove your emotions from the decision making process.
I receive hundreds of emails each week, not to mention dozens of private messages on Twitter, Facebook and the member’s community.
Those who contact me with doubt about a particular trade setup usually get the same answer.
If you’re unsure, do nothing.
That is by far the best thing you can do if you have doubts about a market’s likely path forward.
Now, I’m sure that isn’t what those asking the question want to hear.
But you know what?
I’m doing them a favor by telling them to do nothing. Not because I think they’ll lose money on the trade, but because doing nothing in situations like these is the key to success.
Unless the market is screaming at you to trade it, you’re better off staying on the sideline.
5. The Market Is Always Neutral
Have you ever blamed the market for a loss?
Sure you have; we all have. Placing blame elsewhere makes it easier to cope with an unpleasant experience, such as when you are wrong and lose money at the same time.
However, this doesn’t make sense because the market is always neutral. Moreover, deflecting blame only stunts your growth as a Forex trader.
Some will argue that a market in an uptrend has a bullish bias and conversely, that one on a lower or downward trend has a bearish bias.
That simply isn’t true.
You see, the only bias is yours. The market just flows with the information it’s given. It doesn’t know you or whether you’re bullish or bearish.
Why does that matter?
Because far too many traders think the market is out to get them—as if every rate decision and employment figure is determined to take them out of the trade.
When you accept that the market is always neutral, you have no choice but to improve. After all, you are responsible for each possible outcome, good or bad.
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