Trading For Beginners: 4 Key Trading Processes & How To Set Them
You’ve been a forex trader for a little while, but you still consider yourself a beginner.
Perhaps you’ve developed your trade strategy, and you’ve stuck to it. Maybe you’ve even carried out a few successful trades, and you’re looking to embed this success, let it take root in your practices and become a consistently profitable trader. Perhaps you’re even looking to make this your full-time job.
But trading is tough, and the reason that so many new or inexperienced trades give up too early can be boiled down to several simple factors. One of those is not setting the correct targets.
Knowing and understanding how to set targets will help you know what it takes to survive your first year(s) as a trader and how to carve the path to consistency, profitability, and scalable success.
And, once you understand the basics of trading processes and the psychologies involved, imagine just what you could achieve with access to highly sophisticated information, educational resources and a global community – just like what our Forex trading for beginners platform provides!
So let’s start.
Start With Realistic Expectations
Before we get into the processes and how to set them, it’s essential to understand the impact of setting achievable, realistic expectations at the outset of your journey.
Many new traders come into the sector asking questions like, “how long does it take to turn £1000 into £1,000,000?” This is the wrong approach.
Sure, setting goals is a critical factor in building your path to consistent trading, and considering how to make a significant return on your accounts is possible – however, this will not happen overnight, despite what some may tell you on social media, however with the proper education and time, this is achievable.
So the expectation that you should set, instead, is “how can I protect my money?”
And while this seems obvious, it’s crucial to acknowledge and realise that your first year in trading won’t be an instant trajectory into making a lot of money. You may not even make any. If you break even, you’re already doing better than 90% of new traders out there.
Having the wrong expectation from the outset is a sure-fire way of causing yourself to quit early and forming negative behaviour patterns from the start of your career. Set realistic and achievable goals, which will create positive, successful trading practices. The money will follow.
Keep a Trading Journal
Understanding Your Processes
Many traders spend a lot of time finding the best entry – and then once they’re in it, they lose control and don’t know how to handle the trade itself.
Knowing how to set processes precisely is crucial for all traders, especially those just starting. It’s occasionally overlooked but forms a critical factor to the long-term success of a trader’s career.
And if you’re new to the world of trading, understanding these processes is the first step.
1. Education
Every Forex journey starts with education. This is an essential step in acquiring the relevant knowledge to allow you to navigate the twists and turns of the Forex market.
Alongside self-teaching using reliable training tools, we recommend seeking the tuition and advice of a Forex mentor. Learning from a mentor who is both consistent and has experience coaching numerous students is a vital part of any successful trader’s learning journey.
By choosing an educator with a wealth of teaching experience, you can avoid ill-qualified advice that could be costly and produce inconsistent results. Traders that actively forecast their own trades in advance are likely to be able to give you the forecasting skills that are essential to an effective trading process.
2. Routine
Forex trading is nothing without routine. Your daily routine ensures an efficient use of your time so that you can achieve your desired results.
By creating a structured approach to task management, you will be able to fit your trading commitments alongside other tasks or activities.
Just like you would in a 9-5 job, you have to set yourself realistic daily goals that are both achievable and measurable.
3. Forecasting
The difference between a consistently profitable trader and a trader that struggles to maintain profits amidst the ever-changing Forex market is the ability to forecast.
Forecasting allows you to prepare for the day ahead and reduce any emotional responses to market changes that could lead to poor decision making.
Being able to read the market takes time, but with the support of Forex trading professionals, you can begin to learn how to navigate the market alone.
Like any challenge you need to overcome, a failure to prepare could mean preparing to fail.
4. Goal Setting
Having a goal to work towards is key to keeping a focused approach to your trading.
For example, the American sprinter Michael Johnson once said: When he goes to a supermarket, he takes a shopping list so that he knows exactly what he is going for. He goes directly to it and gets what he wants.
Whereas, many other people go into the store, buy a trolley full of items, some of which they don’t need and come away not getting the important things that they went there for.
Outlining your goals clearly and establishing actionable steps to achieve them, whether they’re big or small, is the only way to give yourself the chance to reach them.
Whether you choose to break your goals down into smaller goals or give yourself incentives for when you reach any goals, knowing the practical steps it takes to get there is all you need.
The Bottom Line
This is also something that an experienced provider of Forex trading courses for beginners – just like the team at Guerrilla Trading – can assist with. Whether that’s providing access to a global community where you can air your experiences or concerns, or learning from highly relevant and professional educational resources.
Investing in a trading course for beginners, especially in the first months and year(s) of your journey into Forex trading, can be invaluable to how you can scale, grow and improve your practices.
And once you understand the basics of target setting, just imagine what you can achieve!
So why not get in touch with our experts today, or take a look at our Forex trading for beginners resources, for an in-depth, accessible platform that takes your trading to the next level.
