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7 Tips to Become a Happier Forex Trader

1. Trade less

The aim of Forex trading is maximum profits. Not maximum trading.

Maximum profits is achieved by carefully selecting the right trades. And you can’t carefully select the right trades if you’ve already spent 10 hours in front of the computer.

2. Stop gambling

Forex trading is about following and constantly improving a back-tested system.

If you are not doing this, you are gambling.

Stop it and work on your system. Now.

3. Have a system in place

See tip number 2 for reasons why.

4. Keep a trading journal

Your trading journal makes you accountable.

It provides you with a critical view on your past mistakes, helping you to plan your future.

5. Improve your system expectancy

The expectancy of a system is the amount of dollar made by dollar invested, on the long haul.

E=((net profit)/total number of trades)/average loss.

A positive expectancy system grows your account over time.

A negative expectancy system burns your account over time.

If you have a system making an average of $800 for 10% of the trades and losing $50 for 90% of them…

The net profit, per 100 trades= $800*10 – $50*90 = $3,500.

Therefore, E=(($3,500/100)/$50)=0.7

In other words, this system would produce $0.7 for every $1 invested, a 70% return on investment!

Even though it is losing money 90% of the trades…

As long as you follow tip number 4, calculating your system expectancy is easy.

As long as you follow tip number 2, improving your system expectancy is easy.

6. Learn from your mistakes

If you always do the same thing, you’ll always get the same outcome.

Only incremental improvements will help you achieve your goal: Fail, improve, fail, improve, fail, improve, fail, …

7. Keep at it

The difference between winners and losers is the ability to fight through adversity.

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