Trading in the Forex Market: Minding Daily & Monthly Limits
In the foreign exchange market, it’s important to be mindful of your trading activity. Particularly, focus on the frequency of your trading habit, the number of owned accounts, and the number of entered trades.
As a general rule, remember to always have a strategy, along with (at least) fair money and risk management skills. If you have yet to come up with a plan, it’s time to have one; persevere and take your Forex career seriously. To make it big as a trader, know that your attitude plays a role - practicing discipline in Forex trading is a must.
Daily Trading Limit
As of the 3rd quarter of 2015, the BIS (or Bank for International Settlements) reports that the daily trading volume can amount to transactions that are worth more than $1 trillion; this is a reminder of the strength of potential market volatility in every trading day.
Thus, you should always avoid undermining the importance of a limit for daily trades; decide on the most profitable moment to place trailing stops and stop loss orders. If your strategy reveals that it’s time to call it a day after the standard practice of a 3-trade placement, you must follow through (except if you’re a scalper or guerilla trader). Remain disciplined; even if the current market conditions seem to work in your favor, avoid making another entry.
Monthly Trading Limit
Like in the subject of the daily trading limit, learn to be attentive to your monthly trades. With regard to your daily trading activity, prioritize the regular (e.g. every 3 days, weekly, and bi-weekly) evaluation of important tools in your trading account: amount of previous trades and risk capital.
Especially if you’re aiming for long-term success as a Forex trader, it is essential to make sure that your trades are manageable. Know that monthly winning positions aren’t always about immediate profit. If there’s a need to accept (small and insignificant) losses, avoid hesitance; be focused on a major financial goal.
Smart, Successful, and Seasoned
According to the experts, making it big as a Forex trader depends on you; although keeping tabs on your regular trading activity is very important, your commitment to your chief goal drives your career’s fate. It’s up to you to take the initiative of preparing an impressive trading strategy. Generally, you are free to adopt a strict or a happy-go-lucky trading style, but know that you need to be (and stay) disciplined; be attentive of trading limits for the attainment of a bigger win.