5 Forex Trading Lessons I’ve Learned in 2015

I realize it’s been ages since I put out a trade review, so I decided to take a look at ALL of my forex trade ideas this year and list down the hard lessons I should keep in mind for next year.

I had a tough time consistently putting on trades in 2015, partly because of coffee shop duties and partly due to being a scaredy-cat when it comes to risking real money, especially around major market events. Guess I forgot that volatility can be a forex trader’s best friend if you’re prepared enough.

Anyhoo, I’ve managed to dig up my trading journal and have tracked down the trade ideas that I did make throughout the year. A quick look tells me that I had more canceled trade ideas than Star Wars has fans! Okay, maybe not. Still, after spending an afternoon going through my trade setups while sipping my hot, freshly-brewed java, I have narrowed down the main forex trading lessons that I need to remember going into 2016:

1. Focus on attendance first.

You simply can’t take advantage of opportunities you don’t know about. No matter how many non-trading-related tasks you have, you have to put in the necessary hours to familiarize yourself with the markets and stretch your trading muscles.

When you’re always updated (or at least aware) of what’s happening in the forex market and you keep your trading skills sharp, then you’ll react better to opportunities when they come along. Unless, of course, you have an EA that does all the work for you. In this case, please contact me via my Facebook, Twitter, or this post. Kidding (maybe).

2. Consistency is key.

I only have to look at my shortlist below to remind me that I haven’t been consistent in my trading efforts this year. Next year I think it would help a lot to consistently churn out new trade ideas. For one thing, this could train me to spot trade opportunities quicker, keep me on my toes for emerging market themes, and practice my existing trade strategies. It also doesn’t hurt that consistency would provide me a better foundation for measuring my trading progress.

3. It’s okay to put on multiple trades.

A lot of my canceled trades listed below stemmed from either being too cautious ahead of a major event or simply not wishing to add to my risk exposure when I already have something cooking. Next year I’d like to remind myself not to shy away from taking multiple trades, especially when I have my risk management plans in place.

4. Don’t wait for that perfect trade.

Not the first time I’m putting this out there, but still a good reminder for next year to not be afraid to make mistakes. I’ve missed out on A LOT of good trade opportunities in 2015 because I wanted that perfect trade. You know, good retracement entries; nice, round numbers; and perfectly visible break-and-retest scenarios.

Unfortunately, a lot of opportunities came in the guise of shallow retracements, slow breakouts, and solid trends that you were sure would end tomorrow (most of them didn’t). Next year I’d like to focus on execution rather than planning so I’ll be more confident about taking less-than-perfect trade setups.

5. Plan the trade. Trade the plan.

Bottom line is that I have to take more trades, so I can have a better chance at turning those trades into winners. Definitely not an easy task for someone who’s struggling with taking on risks.

How about you? What trading lessons have you learned this year?

2015 Trade Ideas:

Thanks for reading this review and hope you’re having a good holiday season!

XOXO,

Huck

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