7 Steps Checklist for Profitable Forex Trading

forex trading checklist

If you’re a trader or investor and looking for ways to start making a profit out of a trade, then Fuad Ahmed has the right piece of advice for you. Mr. Ahmed, a currency trading expert in the following paragraphs is going to prescribe ways that can easily make trading a profitable business.

Fuad Ahmed, tells that after receiving queries from a number of people, he realized that traders and investors were eagerly seeking advice from an expert and wanted to be shown the right way to trade better. Here, Mr. Ahmed has compiled a list of steps that can be followed to guarantee profitable and better trading.

  1. Choose a Trading Strategy.

This might sound like a cliché and redundant too, as all the investors who jump in the arena to trade, do not do it blindly but follow a strategy. What needs to be emphasized here is the selection of right strategy per your trade requirements.

Each investor has a different level of expectations from his trade. Therefore, Fuad Ahmed suggests traders test multiple strategies before finally switching to one and also find what benefits each one is delivering to him. Selecting a strategy helps traders in risk management too, which happens to be a vital aspect of forex trading.

Many investors often make a mistake and remain confused about their right strategy. Mr. Ahmed, doesn’t support using many at a time but, he does stress over the proper analysis and testing of many techniques to know one’s own potential as a trader and find out which one suits his style and expectations best.

It’s recommended that a trader should aim at making one strategy his final choice, however, he should test others before selecting one to remain doubt free and happy with the trading results. One of the most important factors that traders overlook in the beginning is their emotional state. A healthy emotional state can always give better results than a stressed one. A good strategy can always reduce the level of tension for the trader and hence give him better results.

A strategy also disciplines a trader in a good way, boosts his confidence and instills him with energy to make better deals.

  1. Understand and define the Entry and Exit criteria.

Why would an investor willing to trade want to be told about something so basic? Entry and exit are two primary and basic steps that every trader knows about, yet these are so essential that only their mention is not enough rather they need to be put stress upon.

No matter what level of trading you are at, you need to develop an entry and exit strategy as these are two very basic steps but have the entire trading game based on it. A trader must have a regular strategy that can put him in a routine and allow consistency in trade.

  1. Keep Trading your focus and not just money making.

Many traders fail to make a good amount of money in the market because of their directionless. The reason for most traders losing huge amounts of money is their too much focus on money. A trader needs to first learn the dynamics of the market, understand the art of trading and then go ahead.

The key to generating profit out of a trade is keeping your focus directed in the right direction. The desire to make too much profit gains put a lot of emotional pressure on a trader. He gets his mental health affected and remains too stressed to trade better.

To achieve consistency in the trade, a trader has to remain realistic about his business and not expect too many returns in the initial phase, his focus should rather be learning the skills to trade than merely be concerned about making money.

So, in order to remain consistent in your results, a trader should stay committed to one strategy at a time and check all prospects of it. His concern should not only be making money in the beginning but rather devising a good strategy to fight stress, generate may be low profit but in a consistent manner.

  1. Not trading is also an option.

As it has been talked about that for a trader, the main concern should be the achievement of consistency in his trade, not trading can be a solution for him for a while. It’s the easiest one can adapt to make money at a constant pace in the market.

A trader should be clear in his head about the times he needs to trade and when not to trade to make use of this strategy. By taking a break from the trade, a trader can better analyze the market and know his own edge.

Another profit that a trader achieves when not trading is that he does not lose money during the meantime. Not trading for some time clears a trader’s head from all kind of stress and enables him to think with an open mind. He becomes more closed to his goals and is able to work on his pre-defined strategy.

Many traders overlook the viability of not trading, but it’s sometimes essential to take a pause and monitor everything until the right moment to initiate a trade has arrived. They can wisely choose the right deal for themselves and enter it.

  1. Become a disciplined trader.

 Discipline is one thing that every trader knows he must have in the business. The first step to making a profit in the forex trading is consistency, while to achieve consistency, the step to follow is becoming disciplined and organized.

Many traders at times do get the desired consistency but fail to sustain it.

Here are some tips from Fuad Ahmed, that can make traders find the discipline they seek.

Be sure of what you want, choose your trading style wisely keeping it parallel with the market needs.

Make a trading plan and keep it in accordance with your trading strategy.

Choose a forex journal too.

  1. Understand What Success Means.

The first thing that a trader needs to do is ask himself what success means to him. He should know whether he is happy with a 100% profit returns in one month and none in the other or he is more relaxed with a 30-50% profit rate consistently every month. The chances of profit nicely improve when traders learn to slow down the pace of trading and do it smartly.

  1. Develop a strict daily trading routine to develop positive trading habits

Trading success really is dependent on developing the proper trading habits and continually reinforcing them. However, most traders develop negative trading habits and reinforce those instead. They do this by getting lucky on a few trades they have entered on a gamble by either over-trading or over-leveraging. Once they win on one or more of these gamble-trades, they have reinforced a negative trading habit that is very hard to break.

If you wish to become a consistently profitable trader, there will be a need for a consistent trading routine that doesn’t have a gamble like an approach. A trader should induce positive ways into his trading and put off negative ones.

Trading properly is actually a habit. One learns all the ways that make him a good trader and by consistently following the scheme and applying all the techniques becomes habitually a good trader.

There is no perfect funda to guarantee profitable forex trading, but according to Fuad Ahmed, consistent trading is the only gateway to profitable trading.