Regardless of whether you are just getting started in forex trading, or if you have already been in the game for a while, the end of the year is always a time to reflect. It is the time to reflect over what has happened over the past year, and how you should prepare for progress in the year to come.
To help you as you make your plans for the next year, here are some of our best tips for how you can make 2020 a successful year on your forex trading journey.
Find out what works, and what’s holding you back
A great thing for any trader to do from time to time is to go back and review old trades. And this is most certainly a good thing to do now as we reach the end of the year. After all, what good is a trading journal if you never go back and review it?
A smart thing to do when your review your old journal entries is to look up the chart of the instrument traded that day. Check if you made your entry and exit according to your strategy and overall plan. If you didn’t, why not? What can you do to improve next time?
Just like other high performers, we traders also need to examine ourselves in order to understand our actions and improve how we do things. Among the questions you should ask yourself are:
- Are you constantly hopping from one trading strategy to another?
- Do you keep a trading journal?
- Do you follow a defined methodology or are you randomly placing trades?
- Do you follow a daily routine?
- Did you reach your goals this year? Why/why not?
Make your goals attainable
Setting new year’s resolutions is popular, but most people make the mistake of setting totally unrealistic resolutions that they will not be able to attain. And when they can’t attain their goals, they feel demotivated to work harder.
A great way, therefore, to stay motivated and keep working hard throughout the year is to make sure your resolutions or goals for the new year are attainable. Focus on specific aspects of your trading journey that you can measure, and set a timeline for yourself.
Oftentimes, goals like these are said to follow the SMART criteria, which means that they are:
If you can follow these simple criteria for your New Year’s resolutions, chances are they will motivate you to work instead of becoming a problem for you in 2020.
Pick one trading strategy, and learn it!
One piece of advice that usually works out well for new traders who struggle to become profitable is to simply choose a single trading strategy, and then focus everything on mastering that one strategy.
Way too many traders jump from one strategy to another without ever fully mastering the strategy they tried. Remember that becoming good at something takes time, and the same goes for trading strategies.
It may, for example, take a considerable amount of practice to be able to recognize a chart pattern that would trigger a trade entry. And without learning how to do this properly, how do you expect to be able to trade the strategy profitably?
Become a better trader in 2020
With all of this in mind, we hope you will be able to use some of the tips we have outlined here to improve your own trading performance in 2020. Remember that the road to consistently profitable trading is a long journey, and for some it may take longer than for others.
We wish you the best of luck in making 2020 count on your journey to profitable forex trading!