1. Minimize your risk
I’d suggest closing all your Forex positions. The major currencies aren’t likely to make any significant movements over the holiday break due to several banks, hedge funds and other financial institutions rounding off for the year and a couple ofworth of gains aren’t worth the hassle of having to check price movements while you’re buying gifts for your friends or travelling out of town to visit family relatives and loved ones.
2. Review and reflect on your trading metrics
Just because you may have ended the year with a profit or loss doesn’t mean it’ll be an automatic win or loose next year. In order to keep on doing what’s working and stop doing what isn’t, you have to review your trading journal for the year. You can determine whether the Forex strategies that you used were correct for the environment, what processes can be improved and adjusted, and if there were any psychological issues keeping your from the proper execution of your strategy or making the proper adjustments. Probably aiming for unrealistic goals due to greed and impatience or not achieving enough goals due to fear. Creating a trading journal can produce useful data which can be transformed to effective information to improve trading results.
You can also calculate some helpful but overlooked metrics like average return on risk, improving stop losses and take profits, longest draw-downs, average monthly ROI etc.
3. Make goals for the coming year
Now that you have an idea of your strengths and weakness, start listing down your goals and expectations for the year ahead–keep’em simple and realistic. Everything in life is achievable if there’s total dedication of the mind to it.
Goals like, “I won’t take any impulse trades or trade set-ups that don’t include in my plan,” “I’ll identify a trending market before running my trending EA,” or “I’ll only take high reward-to-risk trades” or i will make sure i trail all my profits and be satisfied with whatever i get from the market” are Forex goals that are realistic and measurable.
Don’t focus on the profits–focus on the process because while you can’t control what the market gives you, you can certainly control how you manage what it gives you to keep losses small and maximize profits. With these simple steps, success is inevitable as soon as the opening bells ring in 2015!