The New Year is a time to start fresh regardless of the previous year’s wins and losses. BabyPips.com wants to help Forex traders wipe the slate clean with a list of top 10 New Year’s resolutions for Forex traders. These practical tips will motivate traders to think harder about their personal trading habits, goals, and style for smarter, more successful trades.
Richmond, VA (PRWEB) January 4, 2010 — 2010 marks the start of a new decade, and BabyPips.com, the leader in free online currency trading education, wants to make sure Forex traders start the New Year on the right track. The Forex education site released its top 10 list of resolutions to help traders execute their trading strategies successfully.
BabyPips.com Offers Forex Traders 10 Tips for 2010
“These are practical tips for traders at any experience level,” said Odell Ramirez, co-founder of BabyPips.com. “It is never too late for a Forex trader to adopt any of these resolutions. Traders should print out this list and post it on their fridge or near their computers. Any time a trader has information overload or feels dejected after a losing trade, this list will remind them to go back to the basics.”
These are practical tips for traders at any experience level,” said Odell Ramirez, co-founder of BabyPips.com. “It is never too late for a Forex trader to adopt any of these resolutions.
1. Forex traders should find their own way: Every person has their own beliefs, views, and comfort levels. What works for one trader will not necessarily work for another. Traders should learn all they can, practice what they learn, and eventually they will find a set of skills that will help them navigate and adjust to the markets.
2. Plan the trade, and then trade the plan: Having a plan means being prepared for whatever the market may give a trader, so that means executing without stress or hesitation. Traders must come up with a solid trade plan, and then stick to it. It is pointless to comb through and carefully piece together economic information and technical signals only to jump ship in the middle of the trade. When Forex traders fail to plan, then they have already planned to fail.
3. Get stopped out – the right way: A trader shouldn’t set their stop loss levels according to how much of their account they are risking. Rather, stop losses should be set at points where the original trade idea is invalidated, or no longer has the potential to be successful. Traders should set stops well beyond established support/resistance areas, or when the system signals an exit. The markets do not know how much a trader is willing to risk.
4. Don’t forget the fundies: Not every trader or trade requires absolute mastery of economic analysis and forecasting. It is possible that winning trades can be made on technicals alone, but the astute trader has to be aware of upcoming economic events. These events may have the potential to create an environment that a trader’s system was not designed for. Traders can avoid being blindsided by a Mack truck by not putting up a trade before a major event.
5. Be flexible: The markets are fickle and what catches the markets’ attention today will not necessarily move the price tomorrow. Forex traders must be ready to move with that next major sentiment change and never be married to a position.
6. Don’t force trades: If a system or trading method does not give a clear signal to be in the market, then that means there is no edge for traders to win in the current environment. Forex traders should stay out and avoid putting a trade on just because they are bored and itching for some action. No position is a position.
7. Forex traders will have losing trades: The sooner traders can accept this, the sooner they can remove the emotional stress of losing a trade, and have a clearer head for making the right decisions and adjustments.
8. Journal every detail: Traders should document technical and fundamental analysis, but they must also include their thoughts, feelings and what they were doing at that time. With a journal, traders can look back and say, “Oh, apparently I lost ten out of eleven trades when I was playing Call of Duty® with my friends. I better not trade when I’m playing computer games.” Those small lessons can really add up to becoming a better trader. Traders must keep a journal because no else will record and teach them lessons about themselves. Traders won’t know where they are going if they don’t know where they’ve been.
9. Learn to take a break: Like a developing athlete, resting is just as important. Keeping up with markets can get rough, and a trader’s mind and body can get stressed when things aren’t going their way. These are the times when it is necessary to step back and recuperate. Traders will come back stronger and refocused to take advantage of the next opportunity.
10. Manage risk consistently: There will be times where traders feel so strongly about a trade or times where they want to make back losses that go beyond their normal risk tolerance. The secret to trading success in the beginning is to survive. The markets will always be there and opportunities will always be around the corner. Traders shouldn’t take these opportunities away from themselves by blowing their account.
Forex traders can read this list and other helpful tips on BabyPips.com’s Pick of the Day blog.
About BabyPips.com
BabyPips.com is an easy-to-understand resource for Forex traders. Created in November 2005 by the FX-Men, the site seeks to protect newbie traders from losing all their money in the Forex market either from their own poor trading decisions or from Forex scams. Through free lessons in the School of Pipsology, articles, blogs, forums, and Forex tools, BabyPips.com provides up-to-date information to help protect newbie traders in the Forex market. Start trading smarter at BabyPips.com.
About Pips à la Carte
The FX-Men created Pips à la Carte in 2007 to protect Forex traders from slick, get-rich-quick Forex schemes, while finding fresh, witty ways to educate traders along the way. Forex traders, both new and experienced, have instant access to an assortment of online Forex resources across their five websites.
Start with free Forex lessons, blogs, and forums on BabyPips.com. Read the latest Forex news on FreshPips.com. Get unbiased consumer reviews and opinions on ReviewPips.com. Look for answers to your most burning Forex questions on AskPips.com. And build a rock-solid trading plan using a free, online trading journal on MeetPips.com. Feed your Forex hunger at www.pipsalacarte.com.
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