However, trying to make a trading strategy work will only lead to destructive behavior, such as emotional trading. Similarly, trying too hard to find trading opportunities is a good way to lose money on subpar setups. In fact, I wrote a post that features several of his books. When I first started trading Forex, I remember spending countless hours studying setups over the weekend.
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I would often come back to my trading desk multiple times on Saturdays and Sundays. Then on Monday, more often than not I would end up taking a completely different trade setup only to watch the original trade idea move in the intended direction without me.
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It happened because I was trying too hard. As soon as I stopped over-analyzing trade setups and trying to make them work, my profit curve started to rise. Now I spend maybe 20 to 30 minutes per day looking at my charts—the exception being the charts I post on this website , of course. As counterintuitive as it may seem, learning to not try so hard was one of the things that completely changed my trading career for the better. Successful Forex traders have taken note of this, which is why they let the market do the heavy lifting for them. The concept of thinking in terms of money risked, as it applies to Forex trading, is no exception.
Think about your last trade for a moment.
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Did you define the exact dollar amount at risk before putting on the trade? Or were you more focused on the number of pips and the percentage of your account at risk? The convenience of Forex position size calculators has made it so that we never have to consider the dollar amount being risked. This convenience has caused a huge oversight. In it, I talk about the need to think in terms of money risked vs. This is because pips and percentages carry no emotional value.
So when you define your risk on a trade as a percentage only, it triggers the logical side of your brain and leaves the emotional side searching for more. The best Forex traders know this. Such a statement would contradict my own experience. What I am saying is that no successful Forex trader needs a win today to pay the electric bill tomorrow. No trader can sustain that kind of pressure and become consistently profitable.
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That type of environment will only foster destructive emotions such as fear and greed. Embrace the challenge and focus on the journey to becoming a successful Forex trader and the money will follow. All successful Forex traders know when to walk away and take a break. Those who are truly passionate about trading Forex know how hard it can be sometimes to walk away from the market. Walking away can be especially difficult following a trade. This is because our emotions are running high and often get the best of us. It feels like things are finally starting to click. Walking away at this time can be tough.
The natural tendency after a winning trade is to continue trading. Taking a break after a win will allow your emotions to settle. So the next time you have a winning trade, pat yourself on the back and then walk away. I would immediately start going through all my charts looking for a new setup with the intent of recovering what I just lost. Instead of seeing a loss as a reason to hop back in the market, take it as a signal to look at what you could have done differently.
Top Forex traders know this and have learned how to control these emotions. The very first step in controlling your emotions involves walking away for a bit. Not all brokers offer New York close charts, but you can go here to get access to the same style charts I use. This is when I do the bulk of my analysis anyway since I trade the daily time frame, so it makes sense to take a breather until then. They do it because it sells. Successful Forex traders know this. The only way you can fail at becoming a successful Forex trader is if you give up.
This sounds obvious, but it amazes me how often I see perseverance and grit left off the list of reasons why a certain trader became successful. That brings us back to the first section of this post where I mentioned passion. You must have a burning desire to want to succeed as a trader.
Not because you want more money, but because you love trading. Sure, there are various tips that can help you, but those who have achieved consistent profits are not untouchable. Embrace the journey, because there is no finish line. Even those who have achieved consistent profits have more to learn.
I think the better question is: can you become consistently profitable trading Forex? The answer is a resounding, yes! The key is to focus on the process and forget about trying to strike it rich. Focus on the process, stay disciplined, and the profits will follow. For instance, is a billionaire who works 16 hour days and is generally unhappy more successful than someone who makes six figures a year but only works 6 hours a day and loves what they do?
The second individual is more successful in my opinion. Did any of the traits above come as a surprise to you? Can you think of an attribute of successful Forex traders I left out? Save my name, email, and website in this browser for the next time I comment. Thank you very much Justin this is great staff picked up a lot in the easiest way possible thanks to this article!!!
Dr Bennett Sir I call you Dr because whenever I read your article something get cured and I become more healthier trader. Your teaching are life changing and bank account changing. I love you man.
God bless you. Wow, thanks for the kind words. And from my perspective, comments like yours keep me going as running a website this large is no easy task. Being a beginner at anything means you have a steep learning curve ahead of you. Trading is certainly no exception. Instead, hone in on one thing at a time. Become a master at identifying key levels. Then study pin bars until you know them inside and out. Trying to learn too much at one time is a recipe for disaster.
I just want to say a big thank you to you Justin. I am making amends and soon will share my story.
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God bless bro. You making an impact in the way I trade. Keep the good work. Thanks for the valuable summary. The only good thing I dare to say great of the 9 is never give up. Getting the other 8 slowly but surely. Now, the more I trade the more I like myself because I am honest to face myself. Hey Justin, can you recommend trading books to read! Also, thanks for the Market Wizard recommendation! Thanks a lot justin for your insight and posts. Paper trading, utilizing very small lots, a big desire to learn from your mistakes and sticking to the same strategy and improving on its execution and management skills are key ingredients of success.
Coach what about the desire for more informative material not just irrelevant information that is up on google and other sites in the internet? I learned trading Forex at Online Trading Academy.
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Do you have any opinion about them and their method? Thank you! Thank you Mr Bennett, I always love your posts and set up because no matter how experience you are, you will surely lean and gained from the post. Thanks Justin for sharing your thoughts and daily setups…. Thank you Justin, I read the article and I see many things reflected from the experience I have had in these three years operating, I follow it a year ago and my way of thinking and operating has taken a total turn and most importantly productive.