FOREX Traders can and will do many things under pressure and in many cases are blinded by the information and signals that their FOREX Technical Indicators, FX Charts and FX Currency Fundamental Analysis has set before them.
Following my failed trades on many markets including FOREX, Stocks and Futures, I’ve looked back and noted my many digressions from my Trading Plan. Trades that had I seen clearly the information presented to me by my Technical Indicators tell the tale of trades that I would not have taken the trade or at the least would have traded in the other direction.
Haste is the folly of the ill prepared and pressure to succeed in trading is the pathway to failure. I said that to myself many times, I’ll repeat the same to you now, do I listen? Now I do but in the past I just didn’t hear myself. Even now, I go off on a tangent and try to predict the future trends, jumping ahead of my FOREX Technical Indicators. Yesterday was no different; it was my “Get my head back on straight day” as I tried to jump the gun and traded on the EURUSD and Cable pairs prior to trade confirmation. The results were not as predicted, stopped out on both for a loss.
Oh, just a bit of history in case you didn’t know, “Cable” is the name for the GBPUSD pair, the British Pound vs the US Dollar. It was called the “Cable” because it was traded early on from NY and London via the sub-sea Atlantic Cable, hence the name.
So if there is wisdom to be gained by our failures, it is as I profess to you now (based on experience with losses with several zero’s on them); take time with the FOREX Market, or any Market that is in front of you, learn her habits and cycles; success will come when you are in rhythm with the moves she makes.
Learn by reading, explore new ideas through inquiry, and understand the nuances of market fortunetellers and beware their traps for you are the decision maker for your future and these are the true keys to your success. Of course, no FOREX Market education is complete without the time you spend in front of your computer screen trading the FX. Start with trading the FOREX on a Demo Account available from several brokers, then progress to a Mini or Standard account and trade “Real Money” but do it from the very smallest trade setting you can take.
Yea I know, bla bla bla; you’re not making any money for the time you spend in front of that screen. On a FOREX Standard Account, one point is ten (10) cents US. That’s a thousand points for a measly one hundred bucks! You’ll all of a sudden find out how much work it is to make that Benjamin but you’ll be glad you spent the time. Right now, 93% of all traders lose their initial investment and refund their accounts 3 times on average before they figure it out. Want to be that statistic? Trade bigger lots in the FOREX Market without a Written Trading Plan you understand and follow, and without the experience trading “Real Money” in the FOREX market. If you’re like me, I hate losing and you’ll find that trading 0.1 lots in the FOREX market is like trading big money after a bit, losing 20 or 40 bucks will sting, maybe not in the pocket book but in your “Traders Psyche”. Trading the small lots lets you learn how to handle the Psychological Stresses of Trading without the financial burden.
Now not everyone will follow my suggestions here and not everyone will lose their account. So tell me, are you willing to chance that? It can happen fast, like going to Las Vegas on a “salesman’s fling”, you’re going to stress your account before you have a real feel for the FOREX Market.
To trade the FOREX Market or FX as some call it; you must have the knowledge, courage and stamina to proceed with confidence into the FX Marketplace. But you don’t have to do that fast; Jessie Livermore suggested “being a moment late was better than being very wrong” and that’s the plane truth of it all.
So for the trader, courage comes with the knowledge and experience of paying attention and trading; stamina with your tenured ability to wait for the right moment, and additionally, confidence is your understanding that for every missed trade there is another soon to be at hand. Missing a signal is never the problem the newly initiated make it out to be.
Bob Dylan once said, “Don’t put your hope in ungodly men, or be a slave to what somebody else believes. If you need somebody you can trust, trust yourself.” These are words of wisdom for all of us to remember. He however never meant to imply that you have to learn all of this on your own through trial and error.
Trading is a skill that just about anyone can learn. You can take years of bump and thump trading like I did at first or you can spend a little time with a mentor like myself and many others out there to propel you forward in your learning experience. Can you learn Brain Surgery on your own? Some will say sure, it’s a skill, takes knowledge and experience. That may be true but I’m not sure I’d want the doc looking inside my head if he just read it once in a book and practiced on frogs. I’d want the guy who had someone experienced in the business of looking inside someone’s head to look into mine. FOREX Trading and actually trading any Market, stocks, Futures, Bonds, Derivatives, Options, they all take a bit of training and a strong measure of experience to get good at trading them.
To get GREAT, it takes experience, stamina, knowledge and sometimes a bit of help from a friend.
Here’s to BECOMING a GREAT FOREX TRADER!
Happy Trading from your friends and mentors at www.BlueHeronWealthManagement.com
Thanks for taking the time to read our words, which we hope contain some wisdom that many can share and benefit from. Have a wonderful week.
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