Foreign exchange traders specialise in making money trading in the forex markets but the job can be very arduous and demanding from a social and physical perspective.
To be successful you need to spend many hours sitting in front of a computer screen carrying out technical and economic analysis, refining your strategy and being constantly on the look out for new opportunities to improve your financial income.
Unfortunately, many traders find the stress too much for them and they start losing money because they can no longer concentrate fully on all the tasks they need to do to keep on top of the job.
If you feel you are slipping towards this situation where you feel you are losing your edge here are 5 tips to consider that will keep you ahead of the pack.
Tip #1. Take regular breaks
Sitting at a computer screen without regular breaks is not a good idea for either our bodies or our brains. Try to take 10 minutes off every hour, so that you work 50 minutes and then take a break. Use a kitchen timer to remind you when it is time for your break. During this time, walk away from the computer. You can fetch a fresh glass of water if you have nothing else to do.
If you are a forex scalper you will not want to leave the screen while you have an open trade, so in that case, you may prefer to take your short breaks after each trade, whether it is successful or unsuccessful. This gives you a chance to recharge your batteries before you go back to your charts with a fresh mind.
Tip #2. Mix with other people online
Most foreign exchange traders work in a very solitary environment. Families usually do not understand the process and can resent the time spent at the computer. It’s great to have someone who knows what you are talking about and can share in your triumphs or commiserate with your losses.
For most of us, this means joining one or two online forums. Don’t waste your whole day there but check out your favorite forum during a slow period or at the end of the day. You can pick up useful tips, make friends and maybe help others out too.
Tip #3. Keep a daily check on the economic calendar
Keep in touch with forex news and upcoming announcements by checking the economic calendar at the beginning of each day. Make sure you know what news reports are expected so that you can take account of them in the timing of your trades. This gives you a much better feeling of control than if you are constantly in danger of losing a trade because of some event that you did not foresee.
Tip #4. Exercise regularly
Starting your day with a workout or a run will get the blood circulating and help to keep the mind sharp. Taking a walk is another way to break up your day and give you fresh air.
5. Have a happy social life
Anyone who has been trading for any length of time will tell you that if you want to avoid burnout, you must have a life away from the screen. This means spending time with other people either at home or outside it, and leaving the house for whole days or even weeks from time to time!
Since there is no trading at weekends it should be easy to have a family and social life at that time, but it is easy to spend the weekend in forums or reading news and trading tips. Remember that you are in this for the long term and give yourself some time out.
Finally, watch your diet. If you find you are living on pizza eaten at your desk, it is time to make some changes. It is scarily easy for foreign exchange traders to drift into bad food habits that will soon take away your trading edge.