When I first got involved with forex trading,
I would hear PRO Forex Traders go on and on saying things like;
“Focus on the Process and the Results will follow.”
And I would just sit and wonder for hours and hours on end,
What on earth is the “Process”…?
This really baffled me for quite a while.
But after so many years of wins and losses through trial and error,
I finally understand what the “Process” is.
This is something you’ve probably came across in a couple of books or trading communities on the internet but never really understood.
The “Process” is simply a forex trading methodology which suits your personality.
This forex trading methodology has to be a trading approach that resonates which resonates with your beliefs about the market.
If you believe in trends, then a Trend – Following, forex trading strategy would suit you best.
If you believe in range trading, a price reversal forex trading strategy is probably going to suit you best.
As a result of this,
You need to develop your forex trading plan which is going to tell you to to do and not to do as you go about trading the spot forex or any other financial market for that matter.
Your Forex Trading Plan should be able to tell you;
- The conditions you’re going to use to find low risk, high probability forex trade setup.
- The specific timeframes you’re going to be trading
- How to enter your trades.
- How to exit your trades.
- How to manage your trades.
- How much to risk on each position.
- Which currency pairs you’re going to trade.
- and much more…
But even if you’ve got a forex trading plan, you need to execute your trades consistently following the rules of your forex trading strategy or else you’re going to fail.
You cannot refuse to buy or sell when your forex trading strategy give you a signal to do so simply because the last 10 trades you took were all losers.
And this is where your trading discipline is going to come into play.
There’s no point in developing a forex trading plan if you’re not going to follow it.
That’s like going against a GPS and wondering why you’ve not reached your destination.
I would advice you to take at least 100 trades following the rules of your forex trading strategy so as to get a decent sample size which you can scrutinize and improve.
Record and journal your trades
Keeping a forex trading journal is what separates the winning traders from losing traders.
I’ve never met a successful forex trader who doesn’t record and journal each and every single trade he takes.
Here’s the deal…
If you want to improve your trading, you need to know what you did right so as to keep doing more of it and what you did wrong so as to do less of it over time.
And the only fool – proof way to find this out is to through keeping a forex trading journal which you’re going to keep a record each and every forex trade you take, period.
Review Your Trades
If you’ve consistently followed your forex trading plan as well as the rules of your forex trading strategy, one of these two things is going to happen.
You’re going to become a profitable trader or a losing one.
It’s really that simple.
Whatever the case is, give yourself on the pat on the back because you’ve just made it to the level where 95% of losing traders never do.
If you’re profitable, then Congratulations!
But… what if you find out that you’re still losing money trading the markets, then this is where you’re going to transform your losing trades into a money-making machine.
Remember the trades you’ve recorded earlier?
Now, you’ve got a collection of charts and data that highlights your winners and losers.
So, look at your losers and ask yourself these questions…
- Are there similar patterns that occur which usually lead to losses?
- Is there a filter you could add to prevent this from happening?
- Are you trading against the trend?
Chances are high that you’ll find what’s causing these losses to occur over again.
Now when you do that, simply make reasonable tweaks to improve your trading results.
Once you’ve identified the problems that are negatively affecting your trading performance, simply tweak your trading plan — and repeat the process.
Is this hard work?
Well, you bet it is!
But is it worth it.
Of course, yes!
Besides, No one ever said trading is easy besides the crooks promising you quick riches, right?
Now it’s my turn to tell you…
Go on and focus on the process and the results will follow, insha Allah.
I wish you the very best in your life and forex trading career.
Have a wonderful day.
P.P.S. If you’ve been keeping up with me, you know that I’ve got a couple of courses which teach both Beginner and Advanced Forex Trading Strategies on Udemy, right?
I’ve been thinking about starting a Forex Trading Challenge on YouTube where you’re going to see me take 100 live forex trades using the strategies on a brand new forex trading account and then analyze the results to see if I was profitable or not.
You’re going to watch me live take and learn from my wins as well as my mistakes which is why I plan on naming this trading challenge the;
“Becoming A Profitable Forex Trader Challenge”
If you would like to see me take this challenge simply drop a comment below.
If I do not get enough responses from my students (you) to carry on with this challenge, I might just forget about it altogether.
So what are you waiting for?
Tell me what you think about this upcoming challenge in the comments section below right this minute!