When I first started Forex trading I would sit at my trading desk, have a quick review of the pairs I traded (GBP/USD and EUR/USD) and would then promptly start placing trades. Some worked out some lost, more often than not the trades would however lose and then the psychological issues would start. I would be more hesitant, start guessing price direction, start scalping and revenge trading. The net result equalled losses.

1. Relax - Remove any Stress Factors
After several months trading I learnt to relax, take the mental attitude that there was no rush to enter any trade as there would always be trades available, So I started taking my time before entering any trades. I also ensured that I removed all outside, non-trading influence from the start of my trading day, no-one was allowed to approach me and my office was out of bounds to anyone before 10:00 am, unless there was an emergency. No phone calls were taken or made to ensure I remained relaxed and I could get my mind set up for Forex trading. I started to understand what price action, news and other events had occurred over the previous day, week, month. I started to better understand probabilities during my trading time in the Frankfurt, London and New York sessions.

2. Chart Set Up with Support & Resistance Levels.
My charts are set up in a standard format. I trade off 5 screens with each of the 29 pairs I now trade set within a group of pairs. I have the long term S&R levels marked on each chart and only have to review the previous day's levels. I also mark the long term trend channels on each hourly chart and use the EMA 200 and EMA 60 to confirm direction from the weekly, through the daily to the hourly charts on my main pairs GBP/USD, EUR/USD GBP/AUD, GBP/NZD and GBP/CAD. All other pairs are traded ad-hoc throughout the day depending on news and currency strengths as they vary throughout the day.

3. News and Chart Analysis
The next stage is to review the news, not just the coming news for the day, but the bigger fundamental picture. What is happening around the world, major economic factors, political events, central bank statements, government and corporate news, generally seeking to understand any factors in the world, the UK, Europe and the USA that may impact on the currencies.

That one hour in the morning from 8:00 am to 9:00 am UK time allows me to get my mind focussed and in the trading zone.

When my mind is in the trading zone my trades flow freely and my success ratios are between 605 to 70%, depending on my selected pairs trending well my success ratios are sometimes even higher approaching 80% to 90% even in the high 90% area. When I cannot get my mind into the zone then I experience trading loss after trading loss, then I simply get away from the charts, do something else for a couple of hours, then come back to the charts and start over.

I hope this helps some of you understand the value of taking the time to get your mind in the zone.

The very best for now...