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…