One of the main reasons many traders are not making money consistently in the markets is because they are too focused on money. The more focused you are on making money really fast the more the money will elude you. Focusing your mind on the money creates emotional tension and the more emotional you are the more likely you are to commit the account-destroying mistakes.
Trading forex provides an excellent opportunity to earn additional income or even as a full time career, but most of the new beginners set out without well prepared forex trading plan and strategy to follow. Determining precisely when to initiate a trade may be one of the most difficult decisions forex investors face. It is what is referred to as the entry signal and figuring out a consistent way of entering and exiting a position is an extremely important trait for all traders to have.
As a forex trader you need to be very organized and have a forex trading plan. No matter how much you don’t want to make one or think that you don’t need to make one you should know that you absolutely need to make one. It should include what your trading edge is, how and when you will trade it, and risk management plans. Basically it needs to cover everything you will do in the markets as concisely as possible yet still be comprehensive.
If you want to become a consistently profitable trader you will have to develop a consistent trading routine that is devoid of gambling-like behavior. By becoming organized and disciplined, you can develop a trading routine that will work to reinforce positive trading habits instead of negative ones. Unfortunately, many traders don’t keep a track record of their trades and it results in them getting off track and losing their discipline and never developing the trading habits they need to succeed in the markets.