If it's not a fast market, trading on the FOREX or FX international currency markets can be a stressful time when you're trading the longer time periods. If you're anything like me, I love trading and I have to sit on my hands sometimes like a beginning FX trader because I'm waiting for a position to present itself. That tendency, to want to trade, is one of my Top Killer Trader Mistakes and is a constant battle for me to overcome. To help, I continue to review my FOREX Trading Plan and insure that I keep my entry and exit rules in the top of my mind.
If I'm trading the 15 min chart I don't jump to the 5 and 30 min charts to influence where I'm going, I do however, when I see a setup on the 15 min or other chart, I go to the hour chart to confirm direction and try a high probability trade on the FX based upon the trend at hand, at least the short term trend. I've helped develop some custom indicators which will enhance the probability of a good trade. But as usual the market rules the roost, so I stay vigilant.
I also have a tendency to get out of a position early so using FX trading rules helps me stay in the trade longer and make more money as the trade progresses. If I do tighten stops, like I just did on my long EURUSD trade and get stopped out (traded the one hour, gain of 512 points), I then do another top down analysis of the FOREX market that I'm trading and after determining if I'm in a consolidation or trending market I hunt for another FX entry on that pair or another.
Trading a FOREX consolidation market is tough but very rewarding if you're an active trader. Those that trade swing positions however have to wait for their next trending entry. Sometimes that's a hard thing to do so when you find yourself in that position, don't push the process, wait it out and follow your rules.
Happy trading, follow your rules and always use good money management.
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