Forex Trading Strategy - Decelerate to Go Fast
I originate from an auto racing background for the reason that sport there is a stating that goes, "sometimes you have to slow down to go fast." This saying definitely applies to Foreign exchange trading too.
In auto racing, like trading, most rookies think that greater you press the pedal, the faster you will go. This can be true when driving in a straight line, but racing, just like trading involves many turns. Think about a typical trading month in forex. The month starts with non-farm payroll (NFP) on the first Friday and through this week price often behaves in a certain way. Throughout the second week of each month, after NFP, currencies will frequently change course and behave in an entirely different manner. Now look at a typical trading day. Can there be such a thing? Yes, occasionally there is more price movement, but this movement rarely moves in a straight line. As rookie traders we often put logic aside and focus on speed in the end make an effort to trade every move we see and every gut feeling that people have. A rookie forex trader, much like the rookie race car driver, often forgets or doesn't appreciate that it is how you manage your vehicle, as well as your account, in the curves that determines the way you finish the race.
I've written before about one of the ways you can decelerate when trading currencies online, I call it taking two weeks off. Take a rest from trading and define why you desire to be an investor, what your expectations are, and whether or not those expectations are realistic. Ask may well person for those who have reasonable goals and expectations inside your forex trading. It is easy to forget that the guy by having an interesting accent is trying to market us something and that we forget to inquire about ourselves if what we are listening to forex success is reasonable. Forex marketers want you to think in going fast because the faster they enable you to get thinking, the faster you will purchase.
A different way to decelerate in forex trading is to assess the timeframe you are deciding to trade. Sure, there is a lot more adrenaline and excitement trading a lower time period, but fast timeframes require fast making decisions. Decelerate and trade a higher time frame which means you may have additional time to judge the chart, choose where you wish to trade from, making better decisions. I showed countless traders how easy it's, and low stress it may be, to check on a chart two times a day rather than twice every minute.
The finish goal of any forex currency trading technique is to grow your account. Account growth may be the ultimate way of measuring success, not adrenaline. Take fourteen days off and understand why you need to trade after which decelerate and find out how fast your trading success will come. Your ability to deal with those trading twists and turns can make all the difference.