If you want to win your trading so it’s important to develop your habit through planning your order, otherwise you can’t win if you don’t understand it because Forex trading is a trading mode where you can trade in foreign currency like EUR/USD, EUR/JPY many more like this. Forex market never stable, it changes every time that’s why Forex trader needs planning before starting trade in it.
1. Check your entry, stop loss, and profit levels
As everyone knows that every trader has its own method of doing trading they determine their own direction, time and volatility expectation. When you’ve made your fundamental and technical analyses, you will be prepared to mark your entry and exit levels.
Your entry and earning profit level don’t set your milestone you should adjust your milestone according to your market. You have to firm stop on your trade, you can also use chart stop, time stop or a volatility stop to determine trade invalidation points.
Once you find your entry and exit level, you can easily check the difference of your reward-to-risk ratios to see if the trade is worth taking on.
2. Use proper position sizing
Use proper position sizing is the most important skill that trader could have. Without this skill, you’ll finish up taking trades that are too big and too small, either blowing out your a/c or under utility a high-performance trading method.
Typically, for saving the new trader from risk, mostly recommended 1% max risk on their trade, but that will change your skill grow.
You use a position size calculator that can match your ideal risk as per your trade with your entry and exit levels to give you the accurate number of unit that you should work with.
Of course, you make your trading journaling easier or if the broker is not flexible with their position size that offering you, could always round them off.
3. Determine the type of order you need
Here the word “order” refers that how you will enter and exit a trade. Make sure that which type of orders your broker offers.
When the trader gets more experienced, more refined trade management tools like as good ’till cancelled (GTC), good for the day(GFD), one cancels that other (OCO) and one trigger the other(OTO) should be the released into the mix for manage better position while you’re away from the computer.
You make sure that you read up and practice them a lot before going live with them.