Sunday, February 26, 2012

Why Share Strategies?

We get this question pretty often from readers? And the reason we feel traders should be open to discussing approaches is so that they can better improve their abilities. Trading is a continuous learning experience, and to think that you’ll be trading the same simple setup five years from now is probably naive. All traders are continually working on different aspects of the game, and in order to stay sharp and continue improving, one needs to continually refine and adapt.

We Pipsters are always going on and on about the conditioning of the individual. We firmly believe that fundamental and technical abilities are both necessary in order to be a successful trader, yet the fact is an ability to succeed is no easy task that can be rendered through simple memorization of both fundamentals and a technical approach to trading.

A truly successful trader in this game is much like a truly successful athlete. Of course there are millions of guys who can kick a soccerball or shoot a basketball. There are thousands who can do it particularly well.

But the ones who come out on top are able to perform with regularity. It’s when they can perform with regularity that they earn the stripes that go with being a professional. And doing it consistently is more than a matter of mental preparation than physical preparation.

The mental part of the game is the part that absolutely gets most traders.

The mental part of the game is the last part of the game any traders want to work on.

And the mental part of the game is the part that separates those who are consistently earning a living from those who are forever trying to fine tune the magic ‘formula’ that will make earning pips easy.

Yes, we’ve all met them before… the guys (and gals) out there who’ve been doing this for years, constantly testing charts and setups looking for some sort of tell all scenario where the gut wrenching decisions need not be made. They want it to be as simple as turning on a car, and it’s never going to be that easy. There is always going to be the issue of the market looking to cause chaos in order to shake up the market and keep things in balance.

A truly refined professional who has worked on the mental part of the game realizes that the strategy is simply ONE of the keys to success, and that any approach to trading requires the steadfast mentality to see a system through — to test it properly; define it’s weaknesses; and finally, to put it into action and trade it according to plan rather than dismantling the plan at the first sign of distress.

Trading is a probability game. There is no knowing the direction of the market. There is no setup that is going to work without fail time and time again.

One of our best pieces of advice that we offer to new traders who are not successful is to sign up with a Forex Signal Service that has a proven track record, and study the approach and behavior of these professionals. Professionals do not always come up, but you’ll see first hand how well they’re able to manage their accounts over a long stretch, which is inevitably the key to performance.

The only way to succeed as a professional in this highly competitive arena is to become ‘forever’ a student of the game, and to appreciate the mental makeup that is necessary to become the sort of trader who can put his or her hard earned testing to practice in live action markets and not fold under the pressure of that very formidable drawdown. Study the Forex basics, understand the value of good free information and Forex tips provided on this site, and work to develop an understanding of the mental makeup of a successful trader.

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1 comment:

  1. eToro is the #1 forex trading platform for rookie and advanced traders.

    ReplyDelete

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