No matter how prepared you are, you will most likely make mistakes in Forex Trading. These mistakes mostly happen if there is too much information going around at once. Then, you become overloaded, frustrated and panic follows. There are times when mistakes happen the least you expect it or when your guard is down. Aside from that, there are also random mistakes like tapping the wrong button and you get to have the sell order instead of the buy order or you enter a wrong trading size. Even with automated strategies, you can still encounter such mistakes in the program or the parameters.
Therefore, it is much better if you could run a pre-trade routine that will determine possible mistakes and minimize the errors that you may encounter throughout the day. Depending on the market, you can add additional steps to the ones mentioned below. Running a daily routine only takes a couple of minutes. You must really do it as it will save you some money and frustration too.
Check your Economic Calendar
Economic events deemed as having a high impact can create gaps and spikes which results in slippage on stop-loss orders. As much as possible, you should avoid trading for a few minutes during scheduled news events. Checking your economic calendar before starting to trade is very important. Take note of the scheduled news events and avoid trading during these times.
Check Your Trading Platform
Try to launch your platform and make sure that all your quotes are streaming and not lagging in any way. The programs should also be running as smoothly as possible. Almost all brokers out there are capable of providing reliable feeds, but still, you aren’t so sure that problems will never arise. If you think that there is something wrong with the data feed or it looks inaccurate, don’t gamble with your trades.
Trade With The Right Broker and Trading Platform
For instance, in MetaTrader, you can log in to multiple accounts just by using one platform. In this case, ensure that you are trading in the right account. Be careful and check if you are trading in a demo account or the actual live account. You don’t want to end your day thinking that you had a profitable trade only to realize that the account you used is a demo account.
Take Down Trading Notes
On the chart, you can write text notes that state the impact that the news released has created on your trades. If you get too engrossed with your trade, you might forget these high-impact events, which will surely cost you so much. Do not forget to write them on your chart. In case the event happens later that day, you can scroll over and write the note just near the time of the announcement.
The Automated Strategies Several Times
Even for day traders who are trading manually, they still have several automated orders in Forex trading. For instance, you can use stop-loss orders when targeting the right moment to enter a trading position. Just be sure that these stop-loss orders are setup appropriately.