10 Reasons My Forex Trading Has Been Profitable

I asked myself the following question today, "what is the most valuable advice I can give to someone trying to become a consistently profitable trader?" 
Before I get into it, let me just say that I've only been consistently
profitable for 4 months.  I am by no means ready to say that I am a
totally competent Forex trader.  I am also not saying that I have
mastered the art and I don't need to learn anymore.  I feel like I've
made decent progress towards my goal of becoming a full-time trader but
I still have a long way to go before I quit my day job.  If I had to
state a percentage of my goal completed, I would say I'm at 40%.   I
may be able to accelerate this figure this year but unfortunately I
realistically see myself working for the man in 2007 and perhaps 2008.  

I've
compiled the following list of 10 things by quickly brainstorming.  It
tries to answer the question, "What is the most valuable advice I can
give to someone trying to become a consistently profitable trader?"

1. Develop a written trading plan.  This is an absolute
   must.  Don't attempt to just discretionary trade, this is for
   experienced traders.  If you are not yet profitable, you need limits
   and rules that will help you in developing discipline. 
2. Search for the Holy Grail.   There may not be a holy grail
   but it doesn't mean that you can't look for it.  Continue to explore
   systems, indicators, and anything else you can get your hands on.  It
   will help you in developing as a trader.
3. Read, Read, Read.   Keep reading anything you can get your hands on.
4. Keep a detailed log of your progress.   I keep a record of
   all of my trades and I have monthly P/L graphs that are constantly kept
   up to date.  You need to know if you are making progress and this is
   the only way you'll know.
5. Determine realistic stop loss and limits for the timeframe you're trading.  The key word here is realistic.  Don't use 25 pips stops if you are trading daily charts.  You have to be realistic.
6. KISS.   Keep it Simple Stupid….  Keep your trading
   systems as simple as possible.  Remember that indicators are just
   derivatives of price.  The more indicators you have on your charts, the
   harder it can be to make a decision. 
7. Don't randomly trade throughout the day.   Find the
   specific times of day that you can realistically expect your system to
   be successful.  Don't open trades at 3 pm EST, this is just setting
   yourself up for failure.  Pick a time frame and stick to it.
8. Focus on 1 currency pair.   Don't concern yourself with
   all the different currency pairs.  Pick 1 and follow it closely. 
   You'll be surprised how easily you can get into the flow.
9. Do back testing.  Back testing may use data from the past
   but it can help you learn more about the system you are testing and
   about trading in general. 
10. Whatever you do, don't impulse trade.   This is easier
    said than done but it is an absolute must that you try to prevent
    yourself from impulse trading.  This 5 minutes of recklessness can hurt
    you enough to leave you on the sidelines forever.

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