Fix This Trading Problem
There is a trading problem that if not dealt with, you will lose. It is that simple.
When people decide to trade, they always begin with the intention to act like a professional trader.
They aim to win and make profits where they can quit their day jobs and live the life of a successful trader.
Since the entry barrier to Forex trading is small, many being their journey there. Many end their journey there. This applies to day traders and swing traders.
I have the pleasure of speaking/emailing with many traders. Out of all my contact, I have never met anybody just starting out who is not taking the time to learn how to trade.
At the very least, they understand trading 101, where to find their charts and what a broker is.
Journey usually begins with learning about technical analysis
Almost every trading platform comes with so many indicators that it is impossible to cover them all in this article. To these traders, the indicators are what they will use to reap many profits from the markets.
They learn how a few indicators work, buy books on technical analysis, spend hours on chart time…in short, they are approaching their trading education like a professional. The smarter ones even stay far away from the trading forums that litter the internet.
Moving averages. Gann. Fibonacci. Trend lines.
These people study these in great detail thinking that the more they know, they better they will be.
- Some keep it simple trading trend line breaks in the direction of the overall trend.
- Some trade pullbacks
- Some even get into the complicated market profile and Elliot wave counts.
These traders can talks circles around you with what they know.
That is all they know.
They don’t know about winning
In their quest for technical perfection, they miss out on the key ingredient to trading success.
They may use a handful of indicators that give them bang on technical readings but that is not enough. Ever hear:
“It’s not the sword that wins the battle. It’s the Warrior who’s wielding it.”
Who wins the battle is the one who is better prepared. Not in the sense of being the best swordsman but how they have mastered themselves.
In trading, it is the discipline to follow a proven trade plan that you have written out and tested that determines the outcome of your trading career. There are people out there who know how to trade but will never profit long term.
The act of trading is simple
It is not easy and what makes that true is the one variable that many don’t work on.
For the next 20 days, follow your day trading rules and swing trading rules to the period.
- Don’t take marginal trades.
- Sit out when you should.
- Take your profits and adjust your stops according to your plan.
If you have trading software such as Ninja Trader where you can automate your trading, even better. You can automate your take profit levels and have your stops and targets entered automatically upon trade entry.
When you learn to trade, understand it is not only trading you want to learn about.
You also want to learn about yourself. The best place to start is with trading discipline.
Follow your trading plan.
Fix this problem with trading or your failure is guaranteed.