Author: Chris Miles

7 TRADING LESSONS TO LEARN FROM FILMS

Posted on by Chris Miles

7 Trading lessons to learn from films

The dreaded burnout is a very real fear for anyone trading in currency pairs, young or old, novice or experienced career trader. It’s something you’ve really got to keep an eye on, checking in with yourself and your mental and emotional state regularly so you know you’re still thinking and acting clearly, and not buckling under the pressure.

 

When you’re trading, you’re constantly bombarded with stressful situations, many of which just appear out of nowhere, so you’ve got to make immediate or difficult decisions all the time… which is sure to take its toll over time, affecting your outlook, your temperament, the way you think and the way you react in times of trouble.

 

Overtrading, too many losses, extreme market conditions, unrealistic expectations of what you’re going to achieve – all of these can lead to burnout if you’re not careful, but one of the best ways to stop this is, quite simply, by taking a break!

 

Of course, trading is exhilarating and exciting, which is why you want to do it all the time, especially when you’re first starting out. But it’s important to take a step back regularly, so you can unwind, relax and get away from all the stress… something that will only prove beneficial to your trading when you do go back to it, don’t forget.

 

That being said, just because you’re not trading doesn’t mean that you have to turn your back on your passion altogether and there are countless movies and documentaries out there that are sure to be of interest from a trader’s perspective. So, with that in mind, here are a couple you might like to check out.

 

Rogue Trader

 

This 1999 movie starring Ewan McGregor tells the true story of Nick Leeson, who once upon a time worked for Barings Bank as general manager of the trading floor on the SIMEX exchange. It charts his stratospheric rise to the top – and his fall from grace. Nick goes on to hide some massive losses, eventually climbing to more than £800 million.

 

While the flick was not well received by critics (and it has a rating of 30 per cent on Rotten Tomatoes), there are some lessons that can be taken away from it, as an FX trader.

 

It’s certainly an excellent reminder, for example, to keep emotions in check and not get too cocky or overconfident, as well as knowing when to quit… and actually going through with it. Chasing money lost is never a good winning strategy, after all.

 

Floored

 

Rewind even further to 2009 and you’ll find Floored, a documentary film focusing on the trading floors of Chicago and charting how computerised trading changed the way the business operated. Those traders unable to evolve and adapt to the new world order were left to fall behind, their skills no longer relevant.

 

This could well be just the cautionary tale you need to make sure you stay up to date with all the latest technological innovations and advancements, so you can see how they might help you with your trading.

 

It’s important to keep an open mind where your trading strategy is concerned, after all – and remember! Nothing lasts forever, so the ability to remain flexible with your approach could prove invaluable in the future.

 

This film also represents a great opportunity for new traders to gain some helpful insights into life as a trader and how it can affect people and the various aspects of their lives.

 

Margin Call

 

2011’s Margin Call (with an A-list cast including Stanley Tucci, Jeremy Irons and Demi Moore) takes place over the course of 24 hours at an investment bank on Wall Street at the start of the 2007/2008 financial crisis.

 

The investment firm discovers that its portfolio is entirely worthless… so the question is: Hang on and implement damage control (if possible), or sell the assets before the news hits the headlines?

 

One of the biggest takeaways from this film for traders is to never borrow money to make a trade. Only trade with what you can afford to lose, or you could find yourself in a pretty big hole.

 

But, for traders, it’s also important to be aware that fluctuations in the markets can and will happen – and the key is how you react when tides have turned and how you weather those storms.

 

Gains and losses are a natural part of the cycle, so always keep your trading strategy in mind and stick to the plan, no matter what happens. There is no room for knee-jerk reactions when trading, after all.

 

Traders: Millions by the Minute

 

This is a two-part BBC documentary focusing on FX trading in London, New York, Amsterdam and Chicago, including both city-based professionals and those trading from home, showing how they juggle trade and home life successfully.

 

For new traders, in particular, this would be a hugely beneficial watch, as it will show you just how involved everything is and what you need to do in order to see the successes you’ve always dreamed of.

 

The Wolf of Wall Street

 

No list of trading movies would ever be complete without a mention of The Wolf of Wall Street, starring everybody’s favourite Leonardo DiCaprio as Wall Street stockbroker Jordan Belfort.

 

If you haven’t seen it yet, it’s an incredibly entertaining, exciting and fast-paced film that’s a great watch even if it’s just for the sake of pure enjoyment, but if you’re looking for some takeaway lessons to benefit your trading strategy and approach, there are lots of those as well.

 

All the entertainment aside, perhaps the main lesson you can take from The Wolf of Wall Street is to make sure that you have a very clear vision of what you want to achieve, why you want to achieve it and how you plan to go about doing it.

 

Without a proper plan and strategy in place and knowledge of how the markets work, you will find it hard to navigate your way through the world of FX trading.

 

Billion Dollar Day

 

Another BBC documentary, this time from 1986, which follows various currency brokers and traders, providing some amazing insights into forex. Despite it being nearly 40 years old, the film is still a firm favourite among traders, so definitely well worth a watch.

 

From an educational perspective, Billion Dollar Day shows you just how important it is for you to know how to manage your losses.

 

All the professional traders featured in the documentary sustain losses and it’s absolutely inevitable that you will too… but it’s all about how you bounce back from there without letting it affect you that will determine the success of your trading career.

 

Boiler Room

 

Boiler Room (2000) tells the tale of Seth Davis (played by Giovani Ribisi), a 19-year-old college dropout who runs an unlicensed casino from his house… until he’s offered the opportunity to join brokerage firm JT Marlin as a trainee stockbroker. But all is not as it seems…

 

There are lots of investment lessons that can be taken away from Boiler Room, but one of the most pertinent perhaps is to make sure you don’t lose sight of what really matters and what life is really all about.

 

In the film, the characters find it hard to claw back their losses and the effects of this are far-reaching (without giving too much away), taking its toll in all areas of their lives. For the majority of traders, this won’t be too much of a threat – as long as they’re practising excellent money management and have a trading strategy to stick to.

 

But it’s also a great warning to make sure that you’re not becoming entirely consumed by your trading career. Striking a good work-life balance is essential and you’ll find that taking time away from your currency pairs will only benefit you in the long run and you’ll be better placed to trade well when you do pick it back up again.

 

Remember that there can be too much of a good thing, so make sure you’re scheduling regular breaks and spending time with friends and family. You’ll return to your desk fully refreshed and with a brand-new fresh perspective.

 

Looking for a funded forex trading account? Check out what FTUK has to offer and get in touch with the team today to start trading when you like, where you like.

 

You can join any of our funding programmes and start gaining proprietary trading experience immediately. Our traders come from all over the world – all you need is internet access and a robust trading strategy to get going.

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10 HABITS OF EFFECTIVE FOREX TRADERS

Posted on by Chris Miles

10 Habits Of Effective Forex Traders

Successfully navigating the forex market is never a matter of luck or chance. Experienced forex traders have a relentlessly disciplined approach, which helps them avoid the pitfalls and maximises their chances of doing well. Here we have a look at the most effective habits you can adopt to make that move from novice to a professional funded trader!

 

  1. Have a watertight risk management strategy

Forex trading is not as simple as emulating a formula, and expecting profits to drop into your pocket. Even highly experienced traders sometimes experience losses; they accept this as part of the game plan. The key is to minimise the risk with a clear strategy, which you stick to no matter how your luck is turning.

 

Knowing your risk tolerance means being honest about the amount of capital you have to play with, and how much you can afford to lose. It is essential to work this out in advance, and remain consistent in your approach. Make an assessment of your income, outgoings, and savings, and work out what percentage you can comfortably risk losing.

 

  1. Learn to manage your emotions

Professional forex traders are experts and looking at a situation objectively, and not making subjective decisions which are based on a gut reaction. Amateur traders are often led by fear of making a loss, or a greed for greater profits. These are two primitive and powerful human emotions, which we are all prone to at times.

 

The key is to learn to put these emotions to one side, and take a more analytical approach. Always refer to your risk strategy before making a decision, and consider whether it is within your safe parameters. Remember that the markets can be volatile, and profits can very quickly turn to losses.

 

If you are an impulsive person by nature, it can help to learn some mindfulness techniques, which ground you in the present moment, and reduce the tendency to speculate about the future. Even Olympic athletes employ mindfulness methods to help them thrive in the highly competitive sporting arena, so they are worth taking seriously.

 

  1. Be prepared to learn

Even old hands at playing the forex market make sure their knowledge and techniques are kept up to date. Learn as much as you can before you begin, from the wide range of books, seminars, courses, and online material that is available.  Read trade journals and economic publications such as the Financial Times, and get to grips with the technical stuff.

 

The more you know, the better you will become at predicting which way the markets will move, and this will give you a competitive edge. Good traders have a strong grasp of the current market conditions and are comfortable with carrying out performance analysis.

 

  1. Know your exit strategy

Of course, you should put a lot of thought into your entry strategy, but having a plan for your exit strategy is absolutely crucial. This will prevent you from making hasty decisions under pressure, which you will regret in hindsight.

 

How you determine your exit plan will depend on your level of forex experience, what your risk tolerance is, and whether you are looking for a long-term or a short-term trade. There is no need to develop a complex strategy if you are a novice trader; in fact, a simple strategy can be just as effective.

 

One of the most common methods employed by traders of all levels is the stop-loss order. This is an order placed before the entry point, which automatically triggers an instruction to sell, once a predetermined market price has been achieved.

 

This avoids the temptation to chase a higher profit and risk it turning into a steep loss, and provides a safety net against serious and damaging losses should the markets experience volatility. Stop-loss orders are flexible, in that they can be moved to a higher or lower position after being placed.

 

  1. Track your performance

Use a journal or a spreadsheet to keep track of your daily profits or losses, so you can analyse your performance over a period of time. This will help you to see if your strategies are working, or if they need tweaking or rethinking. Look out for which currency pairs are performing best, and what your most successful time zones are.

 

Review your records on a regular basis. If your results are disappointing, see if you can identify the reasons for this. If you are on a successful run, pinpoint what you are doing right and build on that. This is a technique that all successful forex traders employ, to help them keep on top of their game.

 

  1. Keep up with economic news

Top forex traders know how to read the forex markets, to give them a head start and spot opportunities at exactly the right moment. There is no need to be put off if you don’t have an extensive knowledge of economics; even an understanding of the underlying economic forces that drive the forex markets will be beneficial.

 

For example, because the US dollar is the most popular and frequently traded currency, any news relating to this will have the most impact on the markets. Look out for data relating to inflation rate changes, interest rate rises, Gross Domestic Product (GDP) data, the Consumer Price Index (CPI), and the unemployment rates.

 

Another factor to keep an eye on is the balance of trade between nations. In other words, if a certain commodity, such as oil, is in high demand, then countries which are major producers will be likely to have favourable exchange rates at that moment in time.

 

Most professional traders use the economic calendar to keep track of the latest data releases which influence the forex markets. This is a great habit to get into, whatever your level of experience. All major economies produce their own versions, which can usually be downloaded free of charge.

 

  1. Be proactive and flexible

Take a proactive approach and check up on your positions every day. If you have losing positions, always refer to your risk management strategy rather than crossing your fingers and hoping for the best. On the other hand, just because you are on a successful run, it is not always the best strategy to keep the position open, or increase the size.

 

Sometimes, the markets can experience a period a volatility that few people predicted. In this scenario, be ready to pivot your strategies to protect yourself from damaging losses. While a consistent approach works best in stable conditions, at times you need to move quickly to adapt to the market.

 

  1. Develop a niche

Some of the best traders thrive because they have honed their expertise in one specific area, which allows them to keep ahead of the game, and gain a competitive advantage. This makes sense, because it is impossible for any one individual to be an expert in all the diverse factors that move the forex markets!

 

For example, some traders specialise in scalping, which is the practice of making a series of short-term trades, usually with a few hours or even minutes. Although only small profits are to be made with each trade, the volume of trades placed throughout the day can mean the profits add up to a more substantial amount.

 

For those who cannot devote themselves full time to forex trading, swing trading may be a more suitable area of proficiency. The trader will typically hold a position for days or even weeks, so they do not require the same level of concentration and vigilance as day or scalp trading.

 

However, swing traders still keep a careful eye on market conditions, especially if there has been a new political announcement, or turbulence in the general economic situation of the major currencies. It’s all about having an understanding of the big picture, and keeping up to date with the financial press.

 

  1. Use technical analysis tools

Experienced forex traders study charts to help them spot the right opportunities. The most commonly used charts are line charts, which allow the trader to see at glance the closing trade price for each currency, and to see the wider pattern of rising and falling prices within each currency.

 

Bar charts provide more specific information, with a focus on smaller time scales than line charts. They can be useful to identify if it is a good time to sell or buy. The bars are colour coded to make them easier to read, so the viewer can see at a glance the opening price, the closing price, and the highest and lowest price achieved for each currency.

 

  1. Have a good work-life balance

Finally, if you find yourself waking up at 2am to check your positions, it might be time to question your work life balance. It is impossible to trade effectively if you are tired and burnt out, so make sure you keep on top of your sleep and exercise routine, and eat healthily.

 

The forex markets trade more or less 24/4, so it can be easy to get drawn into a vortex. However, stepping back and having regular breaks will make sure you are bringing your best game to the table when you do trade.

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10 TRADING PITFALLS TO AVOID

Posted on by Chris Miles

10 Trading Pitfalls To Avoid

Everyone learns by making mistakes, in forex trading as in life. But by having a heads up on the most common pitfalls that befall traders, you can learn to steer yourself safely away from the danger zones. Here is a guide to ten of the most common mistakes that even experienced traders make, and how you can avoid them!

 

  1. Jumping in with no strategy

Novice traders can tend to jump in with too little preparation, but this is little better than gambling! You must make a trading plan before you make any serious moves on the market. This will help you to minimise your risks, and avoid making decisions under pressure.

 

Your trading strategy should be determined by how much time you have to devote to trading, how high your profit targets are, and how much money you are prepared to lose on each trade. This last point is usually referred to as ‘risk tolerance’; in other words, it is the degree of variability you are prepared to accept in return for your investment.

 

It is advisable not to risk more than 1% or 2% of your total capital per trade at first, until you have gained more experience. Ultimately, how much you are prepared to risk depends on your personal financial circumstances, as this will dictate your comfort zone when it comes to withstanding losses.

 

  1. Overtrading

At first, many new traders think the more, the better. However, forex trading is very much a game of quality rather than quantity, and less is more in most cases. Start with one trade at a time, and don’t be tempted to hold on to a losing position in the hope that it will turn around. Learn to be disciplined, and stick to your exit strategy. 

 

It is rarely advisable for a novice trader to throw themselves full time into forex trading, in the hope of making a living from it. You will put too much pressure on yourself to make money, and this is never good news in the unpredictable world of trading. Remember, even skilled traders make losses, and consistent profits rarely happen in a short timescale.

 

  1. Letting your heart rule your head

Forex trading is rich material for psychologists, because on the one hand, it requires cool analytical logic, and on the other hand, it requires a certain amount of intuition and quick thinking.

 

Add into the mix the primal human emotions of fear and greed, which come to the fore when we are in danger of losing, or in sight of a lucrative reward, and it is quite fascinating for those on the outside looking in! Once you are in the thick of it, it is essential not to let your emotions get the better of you.

 

Of course, you need to stay alert to the risks of a losing position, and allow yourself to enjoy the satisfaction of turning a profit, or you would be somewhat missing out on the point of trading! The key is to question your decision-making process and every step, to check that your actions are aligned with your trading strategy.

 

If you are on a losing streak, don’t be tempted to keep repeating the same mistakes over and again in the hope of recovering your losses. Take a break, and look over your records to try and pinpoint where you are going wrong. If you have a run of success, allow yourself to enjoy it, but don’t become overconfident, as this could soon lead to poor decision making.

 

  1. Not keeping records

It is important to keep track of all your trades in as much detail as possible. This could be in a paper notebook, or a digital spreadsheet. At first, this might seem like an unnecessary encumbrance compared to the thrills of making your trades, but over time you will thank yourself for your efforts.

 

This is because detailed records allow you to analyse your performance. If you make a run of bad trades, look over your records to try and identify a pattern to see where you went wrong. Likewise, if you have a flush of success, work out what you are doing right, and fine tune your strategy.

 

This is not to say it will guarantee success every time, but forex trading is all about checks and balances, and small changes can go a long way. Review your trading journal once a month, regardless of how well you are doing.

 

  1. Not keeping up with data releases

The forex markets are highly dynamic, and move quickly in response to news releases. Some traders build their whole strategy around economic data releases, but this is best left to the more experienced. That is not to say that economic news is not important in forex trading.

 

The biggest factors to keep an eye on include the interest rate, the inflation rate, and the unemployment rates of the major economies, or for whichever currencies you choose for your trading pairs. Bear in mind that the US dollar is the most popular and widely used currency, so any US-based news is likely to impact the markets the most.

 

Keep an eye on the demand for the major commodities that the countries of your currency pairs produce. If the demand is currently strong for a certain product, then the relevant currency value is likely to rise, and conversely, if demand drops off, it will generally fall. Be aware that this can be influenced by seasonal and geopolitical events.

 

It is important to bear in mind that the major players on the forex market will have already made their moves ahead of any influential data releases, so the markets may not move in the way that you expect them to. Therefore, it’s best to wait a few hours to let any turbulence settle down before placing your trade.

 

  1. Setting numerical targets

If you set yourself a numerical goal, such as reaching a certain percentage of success ratio, or a profit target, you are setting a giant bear trap for yourself. This is because at some point you will make a decision that is not based on your strategy, but is based on reward, or to be less polite about it, greed. This will cloud your judgement, and it is self-defeating.

 

Remember that successful forex traders always make their moves based on risk management, and careful position sizing. Chasing the dollars is not their priority, as they know that profits are a side-product of a solid trading strategy, rather than a goal to pursue at all costs.

 

  1. Overthinking your trades

Of course, it is important to have a strategy, and educate yourself about the complex world of forex trading. However, it can be easy to fall down a rabbit hole of overthinking each move, and analysing charts constantly in the hope of increasing your profits. Remember, it is always discipline and sticking to a strategy that will win out in the long term.

 

If you find yourself meddling with your trades after you have placed them, and waking up in the middle of the night to study data releases, it is time to take a step back. Maintaining a healthy work life balance is important in the world of trading, to help you keep a sense of perspective and to avoid becoming too emotionally invested in your trades.

 

  1. Taking too much leverage

One of the attractions of forex trading is that there is a low barrier to entry. You can get going with a forex funded account even if you have relatively modest amounts of capital to play with. However, high amounts of leverage (or loaned money) mean that the risks are greater. It’s much safer to start small than to over-leverage.

 

Study risk to reward ratios to weigh potential profits against potential losses for each trade. For example, a 1:2 risk to reward ratio means that the potential profit is double the potential loss, which is a positive figure. Many novice traders ignore or overlook the importance of risk to reward ratios, but it should be a key part of your strategy.

 

  1. Taking inconsistent position sizes

Your position size always needs to be in proportion to your account size, and aligned with your overall trading strategy. Just because you have spotted a promising opportunity, it doesn’t mean that you should automatically increase your positions, and certainly not by any drastic amounts.

 

  1. Not working with a demo account

Demo accounts exist for a very good reason: they are there to let traders try out their strategies before risking real money. This is doubly important for newbies. Please do not be tempted to skip this step, no matter how keen you are to get going.

 

Even if you think that your strategy is watertight, you will still not be familiar with the nuts and bolts of using the account, and may be prone to making basic keying or admin errors. The demo account will give you experience of operating in live market conditions, and work through any problems before it actually affects your account balance.

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PURE TECHNICAL ANALYSIS TRADER REACHES THE TARGET

Posted on by Chris Miles

PURE TECHNICAL ANALYSIS TRADER REACHES THE TARGET



How long have you been trading for?
3 years
 
How long did it take you to become profitable and how did you become consistent?
It took me 3 years of study and practice to be profitable and I became consistent thanks to the strategy I built in the last few years.
 
What trading methods do you use? Elaborate on your trading style.
Generally it is only technical analysis, my strategy focuses entirely on the study of the chart taking into consideration areas of high demand, minimums, maximums, candlestick language etc. I usually mark the area that for me has a high concentration of demand and depending on how the price touches the area I open a trade. I manage the loss / profit ratio very well making sure that my profits are always three times higher than my losses.
 
What has been your biggest hurdle to overcome?
Myself. It is very hard to discipline yourself, to follow your own rules and not to violate them by following your emotions. There have been some really tough times where I almost gave up on seeing that I couldn’t make progress.
 
What has been your best moment in your trading career?
Realize that I have built a profitable and constant strategy and consequently have an alternative way of having an income.
 
Why did you choose FTUK?
It was suggested to me by a friend and so far I have found the company very serious and willing to help the customer with anything. The thing I like is that there are rules. Basic rules that a disciplined trader should already have. The target milestone is decent as well as the maximum losses that can be made.
 
What would you say to other traders starting out with FTUK?
I would say that it is the right place to invest if you take trading seriously, especially if you already have advanced knowledge and a good strategy.
 
What are you goals long term in trading?
My goals are to improve the strategy, maybe try new ones, be more profitable and consistent.
 
Feel free to share anything else with us!
I would like to thank you for the opportunity given.
GET A FREE RETAKE!Any evaluation account opened in May will get one free retake! Join our evaluation today and trade stress free with a free retake if you fail.

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HOW TO BUILD PSYCHOLOGICAL RESILIENCE

Posted on by Chris Miles

How To Build Psychological Resilience

While FX trading can be a big thrill – and it’s certainly an exhilarating way to spend your time – because of the nature of the markets, it carries with it a big element of risk, as well.

 

Of course, this is partly what makes it just so exciting, but where there is risk there is stress – and, as such, traders would do themselves a real favour by making sure they’re fully equipped to handle the pressure… or they could find their mental and emotional health and wellbeing starts to suffer, as a result.

 

This, in turn, will lead to even more negative outcomes on the trading floor… a truth universally acknowledged is that an emotional trader is a losing trader and you’ve got to keep those emotions firmly in check, at all times, win or lose, if you’re going to see the successes you’ve been dreaming of.

 

Of course, stress can also be useful from a trading perspective and it can help traders be more disciplined and make fewer mistakes. However, it can become problematic, particularly for new traders who don’t have much live trading experience… and this is when it starts to take its toll.

 

So what can be done to ensure that you can keep a level head as you trade? Keeping your cool is an absolute must, no matter how well you’re doing – so here are a few top tips to help you build that all-important psychological resilience and make advances in your career as a trader.

 

Give yourself a break

 

Striving for perfection never did anyone any good and it’s important to acknowledge that you aren’t always going to get it right – and to forgive yourself when you do get it wrong.

 

It can be tempting to go over and over something in your mind when it happens and often this can lead to internalised feelings of negativity, which can result in even more stress and anxiety… which won’t do your trading any good either.

 

Over-thinking is the art of creating problems that don’t exist, or so the saying goes, so when something does go a bit awry, don’t focus on it too much. See if there are any lessons you can take away from the experience to improve your trading… and then simply move on.

 

Get organised

 

It’s easy to feel overwhelmed when you have so much to do, but strong organisational skills can make you feel a lot more in control. This will help you think with a clear head, you’ll be less likely to miss something important and allow you to make well-timed and rational decisions based on your trading strategy.

 

First of all, think about when you’re at your most alert and when you have the most natural energy. Identify this and then make sure you schedule your most important tasks at that time, so you can concentrate more effectively.

 

Avoid taking on too much at first, especially if you’re new to trading, as you could stress yourself out even more, making it harder to achieve what you want. Take everything one task at a time, perhaps with the most important jobs first, and you’ll feel more on top of everything and far more focused on your overall goals and ambitions.

 

Be proactive

 

If you are feeling stressed out right now, sit down and ask yourself why. It’s unlikely that any problems you’re facing will sort themselves out, but an action plan to help you address the issues can make you feel empowered, allowing you to see what needs to be done and where.

 

Your solutions may not be quick fixes, but they’ll do the job in the long run and before you know it, you’ll be back on that winning streak once again.

 

Learn how to relax

 

You’re sure to find yourself challenged at some point in the future, so it’s important that you know how to practise self-care and what you can do to help yourself relax, unwind and give yourself some time to breathe.

 

Self-care comes in many forms so it’s up to you to decide what that means and what you would find relaxing, but there are some initial steps you can take to improve your mental and emotional health and wellbeing, such as getting in a solid sleep routine and sticking to it, getting more exercise, staying well hydrated and following a healthy and well-balanced diet.

 

Be flexible

 

Any strong trading strategy will enjoy an element of flexibility – an absolute essential in a world that constantly changes and evolves. It’s vital that you’re flexible and adaptive when you’re forex trading, so you can make well-informed decisions swiftly as new information comes to light, whether that’s the latest economic report or a seismic political event.

 

Don’t be swayed by what happened yesterday or the day before. Approach each new trading day with a fresh perspective and an open mind, reviewing the market that you see before you, not the one that you saw yesterday nor the one that you think you’ll see tomorrow.

 

Of course, you can – and should – make trading predictions based on the patterns and signals you identify in your own analysis… but don’t be afraid to backtrack and change your mind if you think it’s necessary.

 

If you stick to your guns and you don’t see the outcome you want or thought you would, it can easily weigh on your mind and impact the rest of your trading decisions.

 

Practise mindfulness

 

Mindfulness is something of a buzzword right now, with the need to prioritise mental health and wellbeing at an all-time high following the pandemic. In essence, it’s the art of bringing your attention to the present moment, fully anchoring yourself in the here and now – and it brings with it all sorts of interesting and useful benefits.

 

These include helping to relieve stress, lowering your blood pressure, improving sleep, reducing pain, improving emotional regulation, giving your mental acuity a boost… all sorts of benefits that could prove really helpful from an FX trading perspective.

 

Practising everyday will give you a really strong weapon in your arsenal when it comes to building psychological resilience with a view to winning big on the markets.

 

You don’t need any special tools or resources to get going with it and it’s very accessible for newcomers to meditation. Simply find some space and alot yourself some time. A few minutes at the beginning will be enough to get you started. Either sit or lie down but make sure you’re comfortable and then start bringing your attention to the present moment.

 

The easiest way to start doing this is by paying attention to your breath, noting the sensations as you inhale and exhale. You can also do a body scan, where you check in with the different parts of the body, noticing how they feel, any areas of tension, any sore spots, anywhere that feels sensitive and so on.

 

You’re sure to find that thoughts come in and out of your head as you go… this is inevitable! But in mindfulness practice, the idea is to acknowledge these thoughts but not dwell on them, returning your attention to the present moment time and time again.

 

The end result is reduced brain chatter, a more focused mind and lower stress levels… so if you have been worrying that your trading is being affected by your mental state, it could be beneficial to give mindfulness a try.

 

Maintain strong connections

 

You might not think that maintaining strong interpersonal relationships would have any impact on your trading results, but guess again. Trading can be a very solitary activity and you don’t want to isolate yourself.

 

Remember that people are inherently social beings and surrounding ourselves with others helps us to face up to challenges and pressures head on, to overcome any problems we encounter and helps us to grow from the lessons learned.

 

A fresh eye never hurts, either, so if you are struggling with anything – trading related or otherwise – asking someone for their point of view can help clarify your own vision and allow you to move forward with your decisions.

 

In conclusion…

 

Resilience is an essential skill that gives you the mental and emotional strength you need to succeed in times of adversity and hardship. It gives you something robust to fall back on as you overcome the challenges that lie ahead.

 

It is inevitable that you will experience stressors in the future, but resilience helps empower you to adapt and evolve, based on the situation you find yourself in. And that is sure to help you when trading currency pairs, delivering the wins you’ve long been after.

 

Interested in our funded forex account? Get in touch with the FTUK team today to find out more.

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LOW-RISK DAY TRADER REACHES THE PROFIT TARGET

Posted on by Chris Miles

LOW-RISK DAY TRADER REACHES THE PROFIT TARGET



How long have you been trading for?since 2006 but I had a long break from 2008 until 2020 How long did it take you to become profitable and how did you become consistent?Just under 2 years What trading methods do you use? Elaborate on your trading style.Technical analysis What has been your biggest hurdle to overcome?Self discipline. I had a lot of reinforced bad habits from years when I thought I was trading. What has been your best moment in your trading career?Getting to level 2. Instead of thinking I can do it, or believing I can do it, I now know I can do it. Just have to keep focused Why did you choose Forex Traders UK?Live accounts rather than demo What would you say to other traders starting out with Forex Traders UK?Take your time. Don’t force trades. Be absolutely clear about your entry criteria. Follow your rules. Keep learning What are you goals long term in trading?To replace my income working from home

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THE IMPORTANCE OF REST FOR TRADERS

Posted on by Chris Miles

THE IMPORTANCE OF REST FOR TRADERS

They say that the markets never sleep and, while there may well be a big grain of truth in this particular old adage, it certainly should not apply to FX traders… at least, those FX traders who actually want to make a successful career for themselves.

 

We spend a third of our lives asleep or thereabouts and, while it might well seem like it’s a bit of a waste of time when you could be out there earning yourself some cold hard cash in trading pairs, rest assured that sleep is absolutely essential if you want to remain clearheaded enough to make the best decisions for you and your portfolio.

 

As a first-time trader, it might be advisable for you to stick to short session day trading so you can get your eight hours a night and really get to grips with what trading is all about.

 

Once you’ve grown in confidence and have a better idea of what’s involved, you can think about night trading, as well… and this is when you’ll really need to prioritise a proper sleep routine, or your trades could start to suffer.

 

One trap that people often fall into is thinking that they’ll just go without sleep and it will all be fine. But when has going without sleep for a prolonged period ever yielded any kind of positive results?

 

You need to be sharp and alert to trade and lack of sleep can really get in the way of this, not to mention all the other detrimental health impacts associated with insufficient rest.

 

What happens if you don’t get enough sleep?

 

We all know how to lead a healthy lifestyle… get consistently good sleep, follow a well-balanced diet and get regular exercise. But, of course, hitting all three of these goals is often easier said than done and all sorts of different factors can affect our sleep quality, which can have serious repercussions if we’re not careful.

 

In the short term, sleep deprivation can lead to lack of alertness (not good for traders!), sleepiness during the day, poor memory and other cognitive processes, moodiness, increased stress levels, inability to deal with stress and so on.

 

None of this will help you hit your trading goals, so if you’ve been wondering why you’re not doing as well as you thought you would, maybe it’s time to hit the hay!

 

As for your long-term health, sleep deprivation is associated with all sorts of dangerous health conditions, everything from high blood pressure and diabetes to stroke, heart failure, heart attacks, obesity, depression and suppressed immune system function.

 

So, as well as making sure that you do your best as a trader, getting good-quality sleep will also help you lead a healthier life overall. It’s a win-win for all.

 

With all this being said, what can be done to help make sure you can strike the right balance between getting your beauty sleep and following your trading strategy to the letter? Here are some top tips.

 

Practise good sleep hygiene

 

Clean sleeping is where it’s at and, while it might sound strange, it’s not that tricky to achieve. Once you’ve made a few adjustments and put them into practice for a few weeks, they’ll become second nature and you won’t even think about it.

 

Sleep hygiene or clean sleeping simply means following good sleep habits – and consistency is key in this regard.

 

So, make sure that you’re going to bed at the same time each night and getting up at the same time each morning, whether it’s on a weekday or at the weekend. Your bedroom needs to be quiet and dark, preferably without any distracting devices in there, like your smartphone, TV or computer.

 

Your caffeine intake is also something to make note of. Avoid drinking caffeinated drinks before bed (preferably not after midday), or you could find you have disturbed sleep. The same goes for alcohol… only you know what your vices are and only you can do something about it. It’s simply a matter of deciding what’s most important!

 

Take your trading strategy into account

 

It’s easy for non-traders to get into a good routine when it comes to sleep, but the trading profession is 24/7 and, of course, you’re going to want to capitalise on this as and when you can… which is why traders often suffer in the sleep department.

 

When it comes to creating your own sleep routine and schedule, think about your trading strategy and come up with a schedule that you can maintain consistently. Sleep should form a key part of the strategy you devise, so work out what your ideal market hours are and then build your bedtime routine from there.

 

Embrace the power nap!

 

Naps aren’t just for little children, you know. Adults can also benefit from a quick snooze here and there during the day and, in fact, power naps can even help you sleep better at night, so you could really do yourself a big favour if you do indulge from time to time.

 

Taking short power naps can bring all sorts of benefits with them, although it’s important to make sure you don’t sleep for too long, or you could wake up feeling a little on the drowsy side. Anything between 20 and 30 minutes should be fine for a catnap, helping you take advantage of all the benefits of sleep, without any potential grogginess.

 

A little nap during the day can help drive improvements in your mood, your alertness, your short-term memory, your focus and concentration… if you are starting to feel frustrated with your trading and feel as though your performance is dipping, it might be time to go and catch yourself some 40 winks.

 

Still don’t believe us? Have a read of Sara Mednick’s book Take a Nap! Change Your Life: The Scientific Plan to Make You Smarter, Healthier, More Productive.

 

Other traders have found this programme to be an effective way of fighting fatigue. The book explains the five stages of sleep and what the benefits of each one are, as well as revealing how to assess your tiredness and devise your own sleep profile.

 

It comes with a Nap Wheel on the cover of the book, as well as graphs and charts, to help you work out when your optimum nap time is and how long you should be napping for. You can even use it to design your naps to help you in certain areas, such as creativity or even improving your memory.

 

Set up trading alerts

 

Living in the digital age brings with it all sorts of amazing advantages – and, for traders, trading alerts has to be one of the biggest of them all. You can set yourself up with trading alerts that use artificial intelligence to provide you with market insights, trade opportunities, market news and price alerts.

What this means is that you’re then able to get some quality rest without having to worry that you’re going to miss out on anything. Alerts help to free up your time a little, so you don’t have to spend hours trawling through the economic news to see what’s coming up. Just let technology do all the hard work for you so you can get the sleep you need!

 

Eat your way to sleep success!

 

If you’re struggling with trading-related insomnia and find that you can’t get good-quality sleep if you have trades open at night, why not try eating different foods that can supposedly promote better rest.

 

Kiwi is just one fruit that could potentially help you with your sleep, full of all sorts of amazing vitamins and minerals, including vitamins C and E, as well as folate and potassium. A recent study even found that eating two kiwis an hour before going to bed helps you fall asleep faster, as well as getting more sleep and enjoying better sleep quality.

 

Or what about having a nice glass of milk before bed? Milk contains tryptophan and melatonin, which both help you fall asleep and ensure you get a good night’s sleep, so this could be a great habit to get into if you are struggling with your sleep right now.

 

If you’re not keen on the idea of milk at bedtime, chamomile tea could have similar effects. Chamomile has apigenin in it, which is an antioxidant that binds receptors in the brain that have been found to potentially promote sleepiness and help reduce insomnia.

 

So there you have it!

 

As you can see, successful trading is all about a successful sleep routine as much as it’s about coming up with a winning strategy. We hope these tips help you nod off at night and that you start seeing the wins you’ve worked so hard for soon.

 

Looking for a forex funded account? Get in touch with the FTUK team today.

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