Can You Really Make Money Forex Trading?
Welcome to a new blog post. In this one I will be talking about how I improve my Forex trading and how I think you can too. This will be general advice and hopefully advice that you can apply to your own trading. I am no trading expert but I have been trading for a few years now and had many mistakes to learn from.
Trading is something that needs full commitment and constant improvement from traders. If you are not progressing as a trader you are failing. Progression can be as simple as taking a break instead of trading and losing more money or drinking a glass of water in the morning instead of coffee. All these small things can have an affect on your trading and your overall percentage capital growth. Progressing as a trader takes time and commitment from not only yourself but the closest people around you. If you really want to progress as a trader and get to where you want within the markets, you will need support from the people around you and possibly other traders if you can find some. Trading can be a lonely career and can be profitable and create a higher quality of trading if you can find a trading buddy that either trades the same way you do or the opposite. Bouncing ideas off each other and having competition between each other, is an extremely strong catalyst to improving your trading faster. Actively seek out competition and be grateful for it. By embracing competition you stay at the top of your game. On the other hand, some people I know say that if you have competition you should be pushing harder. Competition means you are not leading the pack in your industry and not dominating the competition. I know Grant Cardone talks about this a lot. Even though this is not directly applied to trading, it’s applied to the markets because if you have a losing trade, there is someone in the world that has just had a winning trade and got your money.
Know that you know what system hopping is and you have an understanding of it. Are you or have you ever system hopped or know someone that does this? Sharing knowledge can really help you and also the people around you, so please if you know someone who is looking to gain experience or become a better trader, share your own experiences and try to help them.
To stop system or strategy hopping, you firstly need to realise the reason why you’re system hopping. Is it because all your trader friends are? Is it because you’re just a new trader and you’re testing new systems out? Or is it because you’re searching for that perfect system? You need to understand why you are doing it so that you can address the issue head on. The easiest way I have found to do this is to understand yourself. Know what type of trader you are and the type per person you would like to be. Take time from your day to understand yourself and figure out what drives you. Find out what you're good at and what your weaknesses are. You need to understand yourself and be able to work on yourself in an effective way to make sure you can progress as a trader over the long term.
Once you know what kind of stage you’re at in your trading career, then you can figure out the other key steps In finding that system that fits your best. One of those key steps is to know what kind of trader you are. Personally I like to have time to do the things that I want to do, therefore I can not be trading the 15 minute charts. I also like to have only a few trades on at one time, that’s why I trade the daily chart. Figure out what you want from trading and base your system around that. What you need to do is find a system that you like and stick with it. Stick with it for 3 months without learning or trading any other systems. If you start losing money, keep going. Trades go through winning and losing streaks, you never know if you are on the edge of a massive winning streak, just keep going. Make sure you are keeping risk management as a high priority.
If you still think the system is bad then move on and learn something else, just make sure you really tested the system. Now I’m not saying it takes 3 months to test a system but something that happens when people system hop is they are looking for that special system that never loses. They will look back at the markets and in hindsight, get an 80% win rate and 300 pip moves. Then when they move to live trading, the first 3 trades are losses and they move onto the next system. Make sure when you trade yourself, that you keep your expectations realistic and do not expect to make 100% a week on your account. Setting goals is very important to becoming a profitable trader. Setting goals and reviewing them as often as possible. I suggest having monthly, quarterly and yearly goals. This keeps you focused on the short term, midterm and long term goals for your trading strategy. Focus on getting that first month of profitable trading.
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I have a trading community where I post all my trading setups so if you are interested In joining, please use this link: https://discord.gg/gP4DNwe
Thank you for your time and I hope to see you in the next blog post.