Follow Your Plan
The biggest challenge is making financial decisions. However, there is a way to simplify this process. Use the plan. Create a clear action plan that includes your entire trading process:
- Market analysis
- Trading during major news releases - action plan or decision to avoid these periods at all
- Trade entry - finding and confirming a trading signal, volume of potential profit and risk, maximum trade size, etc.
- Trade exit - how many pips the position should go against you before closing, whether you will move your Take Profit level or not, the time to exit the trade at the end of the day for intraday traders, etc.
When your every step is thought-through and scheduled, you don't think about what you should or shouldn't do. Check your plan point by point before entering or exiting a trade and make your move only when every single condition is a match. If at least one point doesn’t fit, you can safely reject the signal and wait for the next opportunity.
Use Indicators
Forex technologies have advanced so much that special programs are able to predict the future behavior of the market with great accuracy. Beginner traders should definitely take an advantage of this.
In addition, indicators are irreplaceable when entering trades. If you get a suitable signal, select a couple of indicators to confirm it. This will simplify the decision making process.
Moreover, there are indicators that alert you about important market events such as reaching a desired price on a chart. This way you don't have to constantly monitor your trades and you can timely react to price actions.
Other indicators can be used to calculate a suitable position sizing. A useful option for a novice trader.
Automate
Want to avoid constant chart monitoring but still want to close your trades on time? Use Stop Loss and Take Profit orders. Want to enter a trade without staring at your charts until the price reaches the right level? Use pending orders. Forex offers a range of options that will allow you to only partially participate in trading.
Well, the busiest ones can entrust the whole process to a trading robot. You just have to decide on the strategy and the appropriate risk and and profit levels. I’m sure, the trading robot you need already exists.
Don't Overcomplicate
Whichever trading system you choose, try not to overload it. Many novice traders try so hard to simplify indicator trading that price fluctuations are lost in multi-colored lines and patterns. As a result, it becomes simply impossible to get a high-quality trading signal.
Keep it simple. Think carefully about your trading plan and select several absolutely necessary tools that will become your irreplaceable assistants.
Most importantly, choose the right broker. Pick a company that allows you to use the programs and strategies you need. Forex trading will be easier if your broker is on your side. Good luck!