Ok, this core principle is the key to your success. Unfortunately, not enough traders take the time to develop it.
Mentality – This is a topic that never really reserves the attention and focus it deserves. To be honest with you, without it, you’re dead before you even get started. Take the time to sit down and really understand yourself: what motivates you, your emotions and how you respond to adversity, and what your goals are. The earlier you do this, the faster you will be on your way to forex success. Before you know it, you’ll be executing profitable trades like a robot, and brushing off your small losing trades.
Wednesday, April 22, 2009
2nd Core Trading Principal
Ok, so I have another fundamental core principal for you today.
Experience – This is the key to being successful trading the forex market. The more you trade and gain experience, the easier it will be for you recognize profitable opportunities. Furthermore, you’ll be able to quiet your emotions and trade objectively (or as close to it) without worrying about the outcome.
The tough part about experience is that you have to start in order to get. I know, sounds weird, but follow me here. You have to crawl before you walk and walk before you run. During this process, you will fall, cry, and probably want to give up. Any many, many people do. But once you lick your wounds, gain your composure, and get back up and make adjustments, you’ll be surprised just how quickly you’ll start seeing profitable results. The key is not to get down and really focus on learning the market and developing a strategy that finds a profitable niche you understand within it.
So don’t get down. When you fall, dust yourself off and try again.
Experience – This is the key to being successful trading the forex market. The more you trade and gain experience, the easier it will be for you recognize profitable opportunities. Furthermore, you’ll be able to quiet your emotions and trade objectively (or as close to it) without worrying about the outcome.
The tough part about experience is that you have to start in order to get. I know, sounds weird, but follow me here. You have to crawl before you walk and walk before you run. During this process, you will fall, cry, and probably want to give up. Any many, many people do. But once you lick your wounds, gain your composure, and get back up and make adjustments, you’ll be surprised just how quickly you’ll start seeing profitable results. The key is not to get down and really focus on learning the market and developing a strategy that finds a profitable niche you understand within it.
So don’t get down. When you fall, dust yourself off and try again.
Your First Core Forex Trading Principal
There are 3 foundational elements to successful forex trading: mentality, knowledge, and experience.
Technical Knowledge – The first to the puzzle is developing a solid understanding of how the forex market operates. Really take the time to study the different currencies, how they trade, and what consistent themes create market volatility. The foundation of your trading strategy will be rooted in support and resistance levels. This much boils down to understanding when to enter the market (low prices, with high intrinsic value) and when to exit the market (high prices, no more upside potential).
External Resources:
Forex Trading Elements
Forex Trading Education
Technical Knowledge – The first to the puzzle is developing a solid understanding of how the forex market operates. Really take the time to study the different currencies, how they trade, and what consistent themes create market volatility. The foundation of your trading strategy will be rooted in support and resistance levels. This much boils down to understanding when to enter the market (low prices, with high intrinsic value) and when to exit the market (high prices, no more upside potential).
External Resources:
Forex Trading Elements
Forex Trading Education
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