January is when we leave one year behind and make plans for the next. We may decide that we'll eat better, do more exercise or break a bad habit. In the spirit of the season, we asked our top traders about their FX trading New Year's resolutions. You might find the answers quite surprising.
First up – remain disciplined.
Financial markets can feel like a roller coaster at times – just ask our trader 'soldier' here. Our top traders have told us the key to avoiding many trading challenges is to stay disciplined, and he's taking note. He knows it's important to have the discipline to stick with pre-determined trade sizes, entry points and exit points, even if the markets are taking his gut on a wild ride.
Successful traders report that their positive track records come not from big wins, but by sharpening and executing strategies in a consistent fashion. Their focus is on taking more profit from the market than what they give away over the long run, rather than concentrating on specific wins or losses from individual outcomes over the short-term.
Putting a strategy in place that is balanced and in line with preferred levels of risk will help minimize the fear and stress that can often paralyze new traders. This means putting up the right amount of capital which allows you to make a worthwhile profit without risking too much on a loss.
Watch this space for more tips and resolutions from our elite traders.
For more information, visit our website to download an e-book on effective risk management here.