Clearing the Forex UK Dead Weight
If you have found that your trading system is not working then you should take the time to get rid of the dead weight. You also have to take steps to keeping the dead weight away from your portfolio. There are 6 easy steps that you should follow to do this. These steps will help you get rid of the bad trades and increase your overall profitability.
Have a Forex UK Profit Plan
You know that you have to have a trading plan, but there are times when the plan you have is not the right one. You should do a test to figure out if this is the case. Imagine all of your trade stops are hit tomorrow. How much of your account will still be there? If you cringe at the thought then your trading plan is not working and you need to revise it. You should also revise your risk management plan as it is not working too well.
Get Rid of Old Positions
Look at all the positions you have open and identify the ones that are not making you money. A lot of traders open too many positions and lose track of some. If this has happened to you then find these open positions. If they are not making a profit close them and take the loss no matter what it is. If the position has not become profitable there is no point in holding onto it.
Only Choose Good Positions
Most traders think that this is what they are doing anyway. The positions you open should have a clear path and you need to know which direction they are going. Trading with price direction is one of the best ways to make money.
Take the Time to Review
Many traders get caught up in the excitement of trading and do not take the time to sit back and review. You should set a time based on your trading strategy and review all your trades and finances. You need to think about trading as a business and keep it as organised as a business would be. When you review your trades you need to pay attention to what has done well and what has not. You then need to tweak your plans to include more of the successful trades.
Target Your Information Sources
There are a lot of places where you can get information for Forex UK trading. However, you should not use all the sources. It is best that you find sources that suit your trading and come in an easy to read fashion. Always look for a source that gives you the exact information that you need. There is no time to sift through useless information.
Have a Budget
Having a budget is something that most traders do not think about. New traders are told to use capital that they can lose without worry. However, this does not mean you should be frivolous with the capital amount. Budget how much of the capital you should be spending on trading and if you reach the budget see where you are going wrong.