What to do Before, During and after Trade is the important thing trader should know. Here are the 8 Forex Trading Rules to manage Forex Entries and Exits
AtoZForex – I did a survey on the stock market and I have analyzed that, most beginners who don’t have enough knowledge of trading don’t know what to do before, after and during the trade.
How to manage Forex Entries and Exits
In the beginning, after and during the trade, most people focus on the wrong things. In this article, I am going to explain how emotions, fear, psychology and greed is attached during the training session.
Before entering a trade
After you spot a high-probability price action trade setup in the market, here are some important steps you should keep in mind:
- Calculate most logical stop loss placement – Don’t ever place your stop loss based on greed. Meaning, don’t place it too close to your entry you need to place your stop loss strategically so that the trade has the proper room to breathe.
- Accept the potential for loss – You need to prepare mentally for accepting the trade lose because you can lose your trade anytime. No matter how good a trade setup looks or how confident you are.
- Accept that the trade needs time to play out – In the market trade can fluctuate regularly, you need to wait for the right time and adjust your stop or otherwise interfere with your trade. Your trade will need time to work itself, so be prepared to do nothing.
During the trade
This is the time when most people have quit the trade. They think hours and hours for staring at their trades, watching the charts, etc.
- Let the market prove you wrong – Predefined level or spot on the chart that will show you your trade idea was wrong if price moves past it, then stick to the stop loss level.
- Trade routine and revision – You should make a trading routine and Check your trades once or twice in a day. However, most of the time you should do nothing. If you find that you’re continuously wanting to adjust profit targets, stop losses or close or add to positions, you are maybe over-thinking it and becoming over-involved.
After the trade
After the trade, you should take a rest for a while. Forget whatever the result.
- After your recent trade ends – It can be very hard to get back to where you need to be mentally in order to wait for the next high-probability trade without over-trading. Over-confidence is a big problem for traders especially after the winning trade because it makes them more arrogant and directionless.
- After a losing a trade – it’s also very important time because in this time you feel frustrated and you want to ‘make back’ your money. But this is a wrong mindset. You have to really understand that all trades are unique and you have the capability to accept trade lose.
- Self- control and Patience – The correct thing to do after a winner or loser is to remain self-controlled and patient and stick to your trading plan; wait for the next high-possibility trade setup.
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