Follow the rules of your trading journal

Adam Smith

Trader
Dec 14, 2015
43
10
24
35
A trading journal is very helpful for efficient and consistent trading performance. Because it is made with valuable trading plans. When a trader will learn about an efficient trading strategy it must be included in a trading journal. For your business, you need to develop one and follow it for a profitable trading business. Even to utilize efficiency in trading and improvement of the edge, you must use a trading journal. Otherwise, you will fail to cope up with every important aspect of the trading business. Therefore, you will have a high potential of losing money in the trading business. That is why you need to start thinking like a clever trader and develop a strong trading journal. Then you need to get into the real trading and execute real trades. Thus, you can avoid potential losses while learning about the trading process.

So, while you are running the Forex trading business, try to use the following criteria for efficient trading performance. The discussions will be made to improve your trading edge for a secured trading business. So, try to understand them with full concentration. And for your business, focus on improving the skills for doing efficient work with the trades.

Risk exposures must not be too big
If you are risking too much money on the trades, your business will be done. Because big risk exposures are very bad for the currency trading business. It accepts the equity of the trading account so you will have tensions all the time. Moreover, your novice trading mind will barely have any chances to find suitable trade setups. Therefore, it is not efficient to risk big lots for trading in Forex. Instead, you need to use a decent amount of investment for the trades. Following a simple plan will be efficient for your trades. Moreover, you can also perform consistently with a decent risk management plan.

Think about a 2% risk per trade strategy for the trades and also about a decent 1:10 leverage for the lots. With these simple plans, you can execute every trades with a very low potential loss. Those who don’t have the plan can develop it by trading demo accounts. Chose broker like Rakuten since they always offer premium environment.

Are you sure about the positions?
After the setting of risk exposure, you need to concentrate on the market condition. It is important for the execution of the trades. Because to find profit potentials, you need to utilize the trades with the most valuable positions. The trading divergence is much important in this manner, but you can also find suitable trade setups with a decent market analysis. But your trading mind must have the potential or skill of finding valuable trade setups. In the case of a rookie trader, the trading mindset must be focused on effective market analysis. Not only the naked chart analysis but also, you need to improve your analysis skills with fundamental and technical strategies.

If you cannot find suitable trading positions, the trades will have high potential losses. Overtrading and micromanagement are two of the most important mistakes in this regard. They do not provide the opportunity to analyze the markets and position the trades efficiently. You need to improve the efficiency of the trading business with valid trading strategies.

Is the profit target satisfied?
When you are placing a trade, reference will help a lot to secure the trades. With a decent profit, the target will have the ability to look for valuable trade setups only. Based on the trading method you need to set the profit target. It can be varying from 2R to 5R but you cannot overexpose a profit target compared to the trading method. Always think of simple profits and try to execute the trades for a decent gain.

So, look for valuable trade setups that will satisfy your profit targets. And most importantly, avoid any signal which is not suitable for trade. With this strategy, you will be safe from a good number of trades that can make you lose money.