When it comes to doing forex trading in Sri Lanka, it is a lot more than just studying numbers, charts, patterns, and ratios. It also involves the personal skills and talent of the trader. However, even the best of forex traders work on improving and sharpening their skills with diligent preparation, training, and discipline. In order to become one of the successful forex traders in Sri Lanka, you should conduct a self-examination of whether you know exactly what you are doing, and understand on why and how you should avoid any kind of fear and greed when trading in forex market. Mentioned below are a few tips on how to become a successful broker, and how to trade forex in Sri Lanka successfully:
Now, it is essential to understand that before you get into a forex market, you are required to have some prior knowledge and understanding regarding how you will take trading decisions and implement them when trading in forex market. You should also know about what is the right time to enter and exit a forex trade. There are many ways to read a forex market. While some people prefer to do analysis involving the economic factors, some read charts, patterns, and trends in order to make a trading decision. It doesn’t matter what method you like to use, you would have to be consistent and be sure that you know what you are doing and that you are choosing the right method for yourself.
But for you to do that, first you would have to learn on how to do it and forex trading is not something you can learn overnight. You would have to put in lots of hard work, practice assiduously, and have patience when learning the changing mechanics of a forex market. Forming your foreign currency trading plan and developing the necessary skills will require time and patience, and the right opportunities will come your way. Also be smart when making trading decisions. Do hard work and smart work.
When trading in the forex market, keep a forex journal to keep track of how you are progressing in the forex market trading. These journals can be very convenient, especially when you are going through a negative phase in the forex market trading results. It can be a confusing and demoralizing situation for you. It might be difficult for you to figure out where did you go wrong with your trading decisions. In this situation, you can refer to your forex journal.
When you are looking for the answers to questions like ‘Am I making the right trading decisions?’, ‘Can I keep trading the same way I have been doing in the past?’ ‘is it time to change my approach or quit the market?’ and so on. It will be a lot easier to find answers to these questions if you can refer to past transactions.
A forex journal will help you to recognize the particular time intervals when you were not making the expected profits, although you had been following your pre-planned trading strategy without failing. In your journal you should enter the entry and exit time of your trade, the volume of the trade, market conditions, why did you enter the trade, your profits or losses, and so on. This will help you acquire the psychological control and discipline in order to execute your order successfully.
When you are entering into a forex market, you will not survive without sufficient capital in your pockets. Luckily, you can start trading in the forex market with small margin amount. Yet, it is an unwritten rule that you should not trade beyond what you cannot handle financially and psychologically.
Some traders think that the larger accounts will give them larger profits, but that is not always the case. In case any of your trading decision doesn’t sit right with market conditions, you might have to suffer heavy losses. Without enough capital, you might be putting yourself at a greater risk than what you can afford.
When entering a forex market trade, it is necessary to consider the risks involved and see if it is worth putting your money into it or not. Along with the risks, you must also consider the possible payoffs, and then make the final decision.
Fear and greed can be very damaging for your trading position in the forex market. It is important to control your raging emotions when trading. It might be perhaps one of the difficult impediments when you are operating in the forex trading market. Each and every time prices move up or down, you might feel tempted to buy or sell the currencies. But you must control your impulses until you are sure that market is moving in the direction you have been expecting. Getting greedy with rising prices, and fearing when prices are falling are not the appropriate traits to hold on to, especially if you want to be a successful forex trader in the long run.
Fear can stop you from forming a strong base in the forex market and you might also lose some very profitable opportunities. It is fear of losses that might lead you to sell your foreign currency too early while making a very small amount of profit. Know that fear can be controlled and managed by creating a proper and effective plan and maintaining patience and discipline.
When trading in the forex market, utilize right take profits and stop loss strategies to make the best out of existing market conditions and price movements. This could be a bit complicated. The objective behind this strategy is to get out of the trade when you are making good profits, instead of waiting for the prices to go down and then get out of the trade with the fear of hefty losses.
The eventual goal for forex market traders is to make best out of price changes so as to make profits at the right opportunities. With the careful implementation of take profits and stop loss strategies, you can improve your control over your trades and funds, and reduce the risks and maximize the profits.
If you want to learn about forex market analysis, you can refer to ‘ Fundamental and Technical Analysis in Forex Trading ’, ‘ What is the Price action trading analysis ? ’, and ' Forex Trading with Support and Resistance Zones ’.
Prathilaba October 17th, 2018
Posted In: forex school
Tags: forex, forex brokers, forex brokers in sri lanka, forex brokers Sri Lanka, Forex Money management, Forex Trading, forex trading in Lanka, forex trading in sri lanka, Forex Trading Journal, forex trading sri lanka, Forex trading tips, successful trader, trader
To maintain a proper journal is always an important task when it comes to forex trading. The main purpose of doing this endeavor is to determine, monitor and keep the focus on your foreign currencies and their performance in the market, and to improve your overall portfolio of foreign exchange trading. A forex trader with discipline and organized knowledge is a moneymaking trader and having a forex trading journal is the initial phase of achieving that.
Keeping a forex trading journal might sound like an easy job, but to actually start one can be a bit confusing and difficult, especially if you are just starting to make your way into the forex market. As a matter of fact, several forex traders do not maintain a forex trading journal as they simply give up the task and rely heavily on the trading logs provided by their forex brokers. The trading logs provided by brokers contains your transaction history, but they are only slightly useful as they do not tell you why you bought or sold a currency.
A forex trading journal is more than just entering transaction records including beginning, finishing, and execution of the trade. It is also about improving your trading techniques and, understanding and transforming your own mindset. The forex trade journal is more concerned with the trader’s emotional mindset before and after the trade takes place.
Usually, a forex trading journal is maintained by many flourishing traders who want to maintain an objective outlook towards their foreign exchange trading circumstances so that they won’t get carried away in upward trends nor they will lose their money with wrong moves during downward trends.
If you want to do forex trading in Sri Lanka with successful results in the long term, keeping a forex trading journal will provide with a great insight that you will not get from the logs provided by your broker or from any other source.
Forex trading journal is prepared while keeping three main objectives in mind:
As a trader, you might still be wondering why you need to maintain a separate forex trading journal when your broker is already providing you with real-time records of your trading transactions. The answer is forex journal offers a lot more than just the recording of your forex transactions. Given below are a few reasons as to why you need to keep your own forex trading journal:
Of course, the basic idea behind maintaining a forex trading journal is to record transactions for the future reference. Over a time period, the journal will become a place of your trading historical data, which you can use for decision making in the future. You will have a summarized record of all your trades and you will be able to keep track of each trade and check on the effects of every trade on your overall trading position in the forex market. Based on your analytical skills, you can gather lots of information from your collected and recorded data and use them for more beneficial market actions.
While the main objective of creating a forex trading journal is recording data, it is also a great planning tool. It provides you with in-depth information about your trading history using which you can make your plans for future trading. You can set parameters for each trade deciding on when you want to buy or sell a currency, your price range, and how much risk you are willing to take without actually harming your profitability and trading position in the market. Basically, a forex trading journal can be your personal thoughts book where you not only record transactions, you also record your sentiments about each trade and where you want to take it from there. You can set goals and work towards attaining them.
One of the most important reasons for why you should keep a forex trading journal is that with time you can identify your trading methodology and work on improvements where you think necessary. You will be able to track your trading performance through forex trading journal and see how well your trading style is performing in the changing market circumstances.
Perhaps one of the best parts of maintaining your own forex trading journal is that you can see where you are going wrong with your investment habits, and thus you can change your damaging habits to something more creative, constructive and profitable actions. With more and more improvements in your investment style that can also give you more profits and strengthen your portfolio, your confidence will increase in your ability to make sound investments in foreign exchange market and make the valuable decisions during volatile market conditions.
When it comes to preparing forex trading journal, you can prepare it in the way, which is most convenient for you. The best and easiest way to approach it is that
Whenever you complete a trade, note it down in an excel sheet or a notebook along with the reasons for why you entered into that trade. That way you will be able to analyze your past trading decisions to get a better outcome in the future.
Given below are some of the basic elements that you must keep in your forex trading journal pertaining to each of your trade:
If you want to know more about how to trade forex in Sri Lanka, analysis of forex trading in Sri Lanka, how forex brokers operate, and many other things you can refer to, ‘ Introduction to Forex Trading ' and other related articles.
Prathilaba October 17th, 2018
Posted In: forex school
Tags: forex, forex brokers, forex brokers in sri lanka, forex brokers Sri Lanka, Forex Trading, forex trading in Lanka, forex trading in sri lanka, Forex Trading Journal, forex trading sri lanka, What Is a Forex Trading Journal, Why I Should Use a Forex Trading Journal, Why Use a Forex Trading Journal