<WikiFX Malaysia Original – Editor: Fion>
In the journey of being a trader and/or investor in the currency markets, we often face two major uncertainties.
Firstly, is our capital safe？
Secondly, how can we make stable profits？
WikiFX is here to take the first weight off your shoulder. We are a forex broker regulator inquiry app that screens, investigates, and rates brokers on their legitimacy to make it easy for you to find the right broker whom you can entrust your capital with. For more information, please log onto www.wikifx.com or download our app on either Google Play or Apple Store.
Now, let us address the issue:
Do you feel stuck in the loop of making profits just to cover losses？ What is more frustrating than devoting all the hard work just to juggle your account between breaking even and covering losses？
Here are a few tips that could (hopefully) help you get unstuck from this loop:
(1) Ask yourself “Why are you trading？”
Many traders come into the market thinking of making X amount of money within the day. Oftentimes, this is the catalyst that causes them to be sucked into the black hole of over trading, forcing trades, or taking trades that are not in alignment with their strategy, which in turn contribute to unnecessary losses.
A better mindset is to trade for passion while seeing money as a by-product only, as if we are playing the Monopoly board game. Despite knowing that the money is fake from the get-go, you are determined to play the game well to win it. Trading should be treated that way with strategy as a priority and money as the result of playing the game right.
(2) “Following the trend” is not what you think it is
This is a saying that gets thrown around in the trading industry like a no-brainer. However, the depth of this statement is seldom talked about. Hence, many traders find themselves in losing strikes even if they were following the trend regularly.
The missing piece of the puzzle is the entry point. Following the trend is correct but if your entry does not make sense, you would often get stopped out and later find the market moving in the direction that you initially projected. A good way to improve this problem is to identify where are the losers and their stop losses within a specific trend.
For example, bullish momentum is spotted on GBP/JPYs daily chart. When it starts to retrace, typically followed by bearish candles that enter into the next targeted zone, there is where you could start looking for a low-risk-high-reward sniper entry within a smaller time frame.
(3) Make it personal
There is a myriad of trading styles within the industry. No matter how promising someone elses trading strategy is, even if they are trading gurus or legendary icons like Jesse Livermore or George Soros, you cannot blindly copy and paste their methods and wish to achieve success with such shortcut approach.
You could learn from them but ultimately you need to curate a trading strategy that suits both your lifestyle and personality. This is important because you need an edge that you can consistently execute upon with comfort as well as confidence.
Here are some questions that you can ponder:
Do I want to sit in front of the screen all day long？
Is my win rate better in scalping or in swing trading？
What is the lifestyle that I am looking to achieve？
Does this strategy make me sleep well at night？
If you cannot live up to your strategy with precise execution, all the effort or so-called hustle is just vanity. You have to carve a path that is created by you, for you, to get far in trading.
<WikiFX Malaysia Original – Editor: Fion>
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