4 golden nuggets of forex trading insight from nial fuller
4 Golden Nuggets of Forex Trading Insight from Nial Fuller
Earlier this week I was thinking about all the emails that I get from traders who are frustrated and confused about how to succeed in the markets. I began to realize that most traders simply think way too much about trading and thus drastically over-complicate the process of trading and making money in the markets. So, I began to write down some pieces of insight that I have learned along my journey as a Forex trader. After about five cups of really strong coffee I condensed my scribbles down to the following four pieces of trading insight that I think you will find quite helpful…
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• Forex trading success is defined by consistency
One of the first things that struck me during my caffeine-infused contemplation this week, was that most beginning Forex traders simply put too much pressure on themselves right out of the gate. It seems as though everyone wants to be a “pro” trader right away. While this is indeed a noble goal to have, it is just not realistic to assume you will easily be able to make a full-time living as a trader right away.
I think you need to ask yourself, “What’s wrong with just supplementing my income each month?” Honestly, what is wrong with that? Many beginning traders seem unhappy with just making some extra money each month to supplement the monthly income from their jobs or to slowly build up their trading accounts. Thinking you will be able to quit your job and trade from the beach after one month in the markets is analogous to thinking you will be able to perform open-heart surgery without ever going to medical school. I urge you to realize that your chances of success as a Forex trader are far greater if you will accept slower and smaller but more consistent gains each month, rather than trying to go “pro” without any training, fortitude, or money behind you.
The classic fable of the “Tortoise and the Hare” is a good analogy to trading; the tortoise wins the race in the end because he is slow but consistent, whereas the hare decides to take a nap and losses his focus on the race. In trading, if you lose your focus on being consistent and instead try “betting the farm”, you are sure to end up losing to those traders who behave more realistically and consistently than you.
• Good trading should be effortless
The ironic thing about trading is that the harder you try the more you tend to struggle. Think of it like a pit of quick sand, everyone knows what happens when you move around and struggle in quick sand; you sink faster, whereas if you stay still you buy yourself more time to hopefully get out of the pit.
Traders who have their strategy or system mastered and who are totally comfortable with the risk they place on every trade, are not stressed or overly-anxious, and their trading is thus effortless. If you have a detailed and effective forex trading plan that you actually follow, you will already know exactly what you are looking for in the market, what you could lose on any one trade, and what your entry and exit strategies are. Since everything is predefined, there will be no catalyst to cause you to struggle and meddle with your trades; otherwise known as trading emotionally.
Good trading should not only be effortless, but also somewhat boring.