Updated: Jan 25, 2022
Quick tips that you can immediately use to become a better trader, that’s what you will be getting in this article. I get a lot of questions about how to get better at forex trading and how to become profitable. So, I decided to make an article with great tips that you can use to become a better trader. This article will cover different tips, such as trading journal tips, trading psychology tips & general forex trading tips. Ready? Let’s dive into the tips!
How to apply these trading tips?
Before I’m going to give you the actual tips, it’s important to realize that trading tips on its own won’t make you a better trader. It’s always the action taking part. So, as soon as you are done with reading the trading tips written in this article, take action. Write them down for yourself. This is the only way these tips can help you.
You can’t get fit by reading more about working out, you get fit by actually going to the gym. You can’t get good at riding a bike by reading about it, you get good at riding a bike by trying it, falling down, learning and adjusting. The same goes with trading. Keep that in the back of your mind when reading these forex trading tips.
Now, let’s get started.
1. Everyone’s trading journey is different
I see so many people on the internet claiming to have found the best system, or the best smart money trading approach or the absolute best trading coach. You have to realize that everyone is different. Therefore, there is no best trading strategy. However, there is a best trading strategy for you.
There are 1000’s of ways to make money in the markets. The only way you are going to make money in the markets is by finding an approach that gives you an edge and that you fully understand. It’s okay to learn from others or to hire a trading coach, but the goal should be to learn profitable concepts from your trading coach and then make them your own. That’s how you become profitable. If you want a trading coach, search for a coach that teaches you to become an independent trader. Choose a coach that teaches you his profitable strategy, but that also teaches you how you can adjust it and improve it. That’s how you become better at trading.
2. Trade around your lifestyle
Most of the people that start with trading have a job. This means they can’t be sitting at their desks all day and trade the markets. That’s why it’s important to find a way of trading that:
Fits with your personality
Fits with your lifestyle
Keep these two points in mind when you are developing your trading approach. I used to go to the toilet at my past jobs to check the charts & monitor trades. You can understand that that’s not the right approach. Now, I swing trade. I only have to look at the candle closes on the H4 chart and the daily chart. This means in the meantime I can still have another job if I want to. This is usually also the best approach for people that start with trading. Make sure you can trade and study, but that you can also keep making an income via your regular job. Because the reality is that it is going to take years before you can make an income from trading. Most people won't tell you this, but yes it's true.
3. Trading journal tips
Yes, a trading journal might seem boring, but it really helps you to become better. I would not have been the trader that I am today if I didn’t have a trading journal. The trader I learned almost everything from also was big into journaling. He literally tracked everything there was to track.
Now, you don’t have to go overboard with it, but tracking a few basics things can already really increase your performance.
If you want some trading journal tips that you can use, watch this video.
Build the habit
You have to make journaling a habit. Fill in a trade into your journal as soon as you take it. Put a print screen of your trade with it so you know how the trade looked when you entered. Also, put a printscreen in your journal as soon as the trade closes. This way you can analyze both scenario's and you can usually find connections between winning and losing trades that can allow you to increase your edge.
Track your own performance
Another trading journal tip is tracking your systems performance versus your own performance. Is there a big difference? Then ask yourself why that’s the case. And of course, fix that big difference.
Trade management performance
Also, track the difference between trade management and no trade management. A lot of people manage their trades because it feels good to trail there stoploss or move their stoploss to breakeven. In reality, they would often make more money if they did not manage their trades at all. And, it also costs less time to trade that way, which is a win-win situation. I don't manage my trades and I make more money this way. It's also a more relaxed way of trading and it gives me more freedom.
Track your emotional states
Another trading journal tip is to track your emotional states when entering and during a trade. Do you feel anxious all the time when entering? Then something is wrong. You probably don’t have enough confidence in your trading and therefore make all kinds of mistakes, which give you anxiety. So, start by building confidence in your trading.
4. Trading lessons and tips from 5 years of trading
Let’s give you some trading lessons and tips from my journey as a trader. First of all, trading is a game that takes years to master. I was relatively quick because I had a lot of spare time and I had a great mentor. If I didn’t have these two things, I wouldn’t have been profitable now. So, to become profitable in a faster way, you need a great mentor and a lot of time to study. On average it takes around 5 years to become a consistently profitable trader.
Another trading lesson tip I can give you is that you need an edge and you need to find that edge in a way that completely fits you. I have spoken about this many times before, but it’s so vital. No edge means no chance at making money. In fact, it means losing money. There are many different edges that you can have, such as:
A discretionary edge
A mechanical edge
An automated edge
These are just some examples. The point is, get the edge and make sure you fully understand it. You are usually better off going for swing trading. Therefore, the best day trading tips I can give you is to start with swing trading. The odds of success with swing trading are higher than with day trading. Therefore, starting with swing trading is usually the best approach for most people.
How to get better at forex trading?
You get better at forex trading by getting the right information, taking action, learning from your mistakes and getting a personalized edge. That’s it. It sounds easy, but how do you actually do it? You start by studying free stuff from a reliable source. This can be me, my articles, my YouTube channel, but it can also be other sources. Next to that you should have some kind of feedback loop. This means that you get feedback over your performance. If you take a trade, you need to learn as much as possible from it.
Hiring a reliable trading coach can also help you. Make sure the coach is reliable, because there are so many scams out there these days, it’s ridiculous. If your coach has a picture of a Lambo on his Instagram, run away. If he claims to have worked at Barclays, run away. Look for verified results and get a trading coach. This way you can learn from his mistakes and learn an approach that is actually profitable in the long run.
Hopefully this article has been useful and you now know more about my trading, but you have also learned more about trading in general. With these forex trading tips you should be able to become a better trader. Now it’s up to you. Take action on these tips. How can you improve your trading? Do you already have that important edge? Are you struggling with something? Write it down, figure it out and take action now.
If you are struggling, you can hop on a free Zoom call with me where we can discuss things. Click here to schedule a free call now.
If you have any questions in general, let me know, I’m here to help.