Personal Qualities that will help you in the markets While Forex trading doesn’t require qualifications or experience to start up your trading career, there are some character traits if which you are strong in, will help you grow much more quickly as a professional trader. Some jobs demand physical strength and stamina, like concreting or general laboring, others require academic acumen like lawyers or mathematicians. For trading, the strength needed is centered on a psychological level. Compulsive behavior will not be tolerated, if you are prone to getting easily addicted to things like smoking and drinking, and you bring these traits to the trading desk, the market will crawl into your head, exploit these weaknesses, then chew you up and spit you out after taking your money. Discipline The level of discipline you will need to exercise for trading success will be sickening at times and may force you to go against every instinctive bone in your body. Can you set out a plan and then stick to it no matter what? Can you let your head rule your heart in even the most highly emotional situations? You’re going to need to in this industry. This quality is the one that you’ll have to infallibly master to experience any level of long term success. Temptation Investment Minded It’s alarming how many Forex traders seem to forget that this business is an investment endeavor. They jump into the market with so many dollar signs spinning in their eyes are traders with unrealistic exceptions of the market blinded to reality by the illusion of vast profits obtained in the quickest time possible. Anyone with this approach gets taught a speedy, sharp lesson as the market eats them alive. Their greed is their undoing and we can learn a lot from their mistakes. You simply cannot enter the markets with a greedy intentions. If you are truly serious about reaching the goal of full time trading, you have to approach this as an investment opportunity. That means engaging with low risk, high probability situations with calculated positive returns. If you want the Forex market to be your casino, guess what – the house wins. Patience If you don’t have this naturally, you’re going to have to develop it pretty quickly. The market is open 24 hours a day, five days a week and is littered with alluring “opportunities” all the time. The majority of these so called opportunities don’t offer high probability success and are fraught with unnecessary risk. The traders who can’t handle waiting for the perfectly right moments end up jumping in at even the sniff of a potential profit will only often jump in at a bad entry price, only to find if they waited like they should of, a better entry price could have been taken advantage of. gbpusd-trade Impatient people end up falling into a vicious cycle of constantly chasing price, I’ve seen this happen over and over with ‘trigger happy’ traders. This is not the way forward, being patient and waiting for a genuinely perfect time to strike is your greatest asset. What is your job description as a Forex Trader? trader setupDo you know what the core focus and sole purpose is for a trader? It’s not to “make money”, and not even to find the best information. These are simply a bonus to doing the job properly, but they are not your main responsibility. Your ‘job’ as a Forex trader, or even a stock market, commodities, equities trader etc., is to manage risk and be dam good at it. You can have the best trading strategy in the world, but if you can’t master the skill of risk management, all the strategic edges in the world won’t save you from losing in the long term. The only way to avoid this pitfall is to remove the thought of making money from your trading and instead place all your efforts on learning to be the best at managing your risk at all times. You must be able to do that in every situation and under any level of stress. By driving yourself to be an excellent risk manager, the profits will roll in naturally. This is why our Forex Price Action course puts so much emphasis on money management techniques. We focus primarily on money management models that are positively geared toward the primary goal; aim for high returns on low risk investments. Our philosophy is simple, why chase after a thousand breadcrumbs when you can wait for a single, larger “slice” of the action. The Forex Price Action 2 hour work week Let’s get to the crux of the problem with the “full time trader” myth. The image conjured up by most people, and encouraged by industry stereotypes, is of someone sitting at a computer desk with four screens surrounding them filled with charts with support/resistance levels, indicators, and pivot lines etc, and a buzzing feed of Bloomberg news in the background on a 50 inch plasma screen TV. This person is clicking away at lightning speed opening and closing trades, only taking a break to pick up the phone call from their “secret source”. I can’t begin to tell you how much of a joke, and how far of a stretch from reality this is. Sure, traders like this do exist outside of Hollywood screens and the excitement seems appealing. Traders who use this stereotype as their benchmark for their trading standards are really just on a constant seesaw of jubilation and gut wrenching stress. I don’t know about you, but I don’t have time for BS like that in my life, and I am sure you don’t either. That’s why we like to approach the market with a more simplified approach that uses one screen and no more than about 2 hours in front of the charts, per week. The most important price on any chart is the “close of the day” price. This figure cements in the market sentiment for that given trading session and can be capitalised on using end of day trading strategies. End of day trading strategies can be used to identify high value trading opportunities where the odds for success are weighed more heavily in your favour, with a significantly low level of risk. If that isn’t enough, implementing such strategies only require you to monitor the closing price for each trading session. At a minimum your trading decisions can based on this data alone. You only need to spend on average 20-30 minutes each day looking at charts. The rest of the day you are free to do as you please – as long as it doesn’t involve jumping on to the computer to chase price and scalp your account to death! Chasing price up and down all day is just a good way to burn your money and waste your life away, especially when you can achieve so much more with only 2 hours a week on front of the charts. With the 2 hour trading week, you can still keep you day job and generate extra income from the markets at the same time. Are you caught up with the mentality of more trades per day equals more potential for profit? How many hours on average do spend in front of the charts every day? If you’re sick of putting all this time in and not getting anything worthwhile in return then it’s time you were introduced to a more practical approach to trading that shows you how to really find potential opportunities. When you realize that the real goal should not be to become a “full time trader”, but rather a professional trader, then our Price Action strategies that yield success and security from just 2 hours a week of trading time will fit perfectly into your plan. If you are really committed to learning how less = more in the markets, check out our Forex War Room membership package.
Posted on: Wed, 05 Mar 2014 09:23:45 +0000
Trending Topics
Recently Viewed Topics
© 2015