Improve your trading system with tips and advice provided and also discover how a simple forex trendline tool can aid you in improving your trading system.

1. Improve Your Trading System
Through Knowledge And
Forex Trendline Tool

2. No matter if you are a new or seasoned
currency trader, there is always scope to
improve your trading skills.
So if you need help at improving your
currency trading system, here are a few steps
worth knowing.

3. Test strategy across all currency pairs

4. The first thing to do is to plan a sound
strategy, and stick to it while trading. This is
why the adage ‘if you fail to plan, you plan to
fail’ is so common, and especially important
in currency trading.
So it is important that traders first understand
the traits and characteristics of each of the
currency pairs.

5. This is because some of the currency pairs are
rather volatile and tend to fluctuate every
day. There are also some currency pairs that
are rather steady, and move slowly over long
time periods.

6. The next step is for the trader to determine
which currency pair is best suited to trade
with based on their risk parameters and
trading strategy. And the only way to perform
a test is to do a test run on various currency
pairs and select the currency pair that yields
the best result with your strategy.

7. Trade Duration

8. To improve in currency trading, traders have
to decide how long they decide to stay in a
particular position. This should be decided
based on the chosen currency pair and if the
position should be held for minutes, hours or
a few days.
The trade duration may affect the overall
profitability due to rollover charges that eat
into profits and other characteristics.

9. Trader needs to understand and strike a
balance between overall profit and trade
duration. Have they observed any
relationship between trade duration and
profitability?

10. Is there a trend where the longer a trade
duration, the greater the overall trading
profits? Is there any obvious and clear
relationship between these two components?
You get the idea; so a trader needs to find
the optimal trading duration to achieve best
overall profits.

11. Exit strategy

12. Not only do traders have to decide how long
they should stay at a particular position but
also their exit strategy.
This means they have to decide the rate of
crashing out of the trade when they are in the
winning position and the rate to cut losses if
in a losing position. Accordingly, traders
should decide on their stops and limits.

13. There are far too many exit strategies to
choose from. The best exit strategy is one
that will increase your overall profits with
lower risks.
How can this be achieved?

14. Consistent rigorous testing needs to be done
on your trading strategy with the various exit
strategies. How I wish I could provide you
with the best exit strategy, however the best
strategy does not exist.
Therefore, you’ll have to perform your due
diligence to test it out to know the answers.

15. Observing key support and
resistance levels

16. Traders should also incorporate currency
news to monitor market information and
technical support and resistance levels that
affect their positions as this helps improve
their trading returns.
Normally traders will employ forex trendline
as a useful tool to help identify key support
resistance levels as well as provide a visual
overview of the market condition.

17. Together with forex trendline tool and the
right analysis of the price charts, traders can
easily implement their trade entries or exits
in any trade.
Alternatively, one can simply lower a
substantial amount of risk by using scaling in
trade entries, scaling out trade exits or
shifting stop loss to breakeven points as soon
as these key levels are reached by the market
price.

18. Maintain a trading journal

19. Many traders tend to fail at currency trading
because they keep on making the same
mistakes. To learn how to be a currency
trader who make lesser mistakes, traders
have to maintain a trading journal or also
called trading diary to keep track of the
strategies that work for them and those
which don’t work for them.

20. The journal should contain important
information of their trading performance.
These include the date and time of taking a
trade position, the rate paid for taking the
trade position, the reason for the trade
position, the strategy for the trade position
and the date and time of exit of the trade
position.

21. Addition information that proves useful and
should be included in the diary is the rate and
reason for exiting the trade position, if the
trader had followed their planned strategy
and the profit or loss incurred in the
transaction.

22. Based on this compiled information the
trader can recognize successful trading
patterns and spot them the next time they
trade. This journal will also keep a history of
the mistakes they made and should be a
reminder to them not to commit those
mistakes again.

23. With the help of these tips, it is possible to
improve any trader’s currency trading system
for the better. I am sure you get the idea.

24. Many ideas presented here require the
currency trader’s due diligence to test their
strategy, bring some small little changes so
that their system can be optimized to bring in
greater overall profits. Also by using
appropriate trading tools, traders can fully
optimized the effectiveness and efficiency of
their trading process.