Master One Forex Trading Strategy at a Time
Do
you want to become a MASTER of your Forex trading strategy? If so, you
will need to have laser-beam like focus, you cannot waver and change
strategies every week like many amateur traders do. Bruce Lee was
arguably the best martial artist of all time, and guess what? He was not
born the best martial artist of all time. He earned that title through
dedication and focus…he learned to become a MASTER of his craft…if you
want to succeed in Forex you will need to do adopt the Bruce Lee
mentality…
Forget everything you have learned up to this point in your trading career,
because if you truly want to master a new Forex trading strategy you
really need to wipe the slate clean of all the confusing indicator and
software based trading systems you have likely used thus far. One of the
biggest problems that plague traders who are trying to adopt a new
approach to the Forex market is that they seem to bring a lot of
preconceived notions and failed trading concepts with them. If you
really want to excel at Forex trading and adopt a fresh new trading
strategy, you need to focus on one strategy or way of thinking and stop
allowing previously failed trading methods to influence your current
perspective on the market.
• Train your Brain
Learning
to master one trading setup at a time will help you properly train your
brain to become more disciplined and objective, two characteristics
that you absolutely must possess if you wish to excel at forex trading. The process of truly mastering and “owning” one forex trading setup
at a time might take months or even years to accomplish, but your
chances of making money are increased dramatically by doing so. After
you completely master one trading setup you will know almost instantly
whether or not your setup is present, there will still be some
discretion involved, but owning and mastering a setup means that you
have fine-tuned your sense of discretion when it comes to deciding which
trades to take and which ones to pass on. Many traders search long and
hard for some “holy-grail” trading system that allows them to avoid
having to develop their discretionary trading skills, unfortunately for
them, professional trading inherently involves a fine-tuned sense of
being able to discern between A, B, and C grade trade setups.
The discipline and objectivity that you will require as a result of learning to master one forex trading strategy
at a time should spill over into other areas of your trading such as
managing your risk and remaining calm and collected. When your thoughts
are scattered on multiple trading strategies and (or) you have little
confidence in the strategy you are currently using, you are obviously
not going to make very wise trading decisions. Learning to master and
“own” one forex trading strategy at a time will solve both of these
problems because your focus will not be scattered amongst multiple
strategies and you will naturally gain confidence in each setup as you
master them one by one. Essentially, our goal in mastering one setup at a
time is to reduce variables in our trading, many traders do the exact
opposite when starting out by actually increasing variables through
analyzing greater and greater amounts of technical and fundamental
market data. Yet, the reason most traders lose money is not because they
aren’t analyzing enough data, it’s because they over-trade,
over-leverage, and analyze TOO MUCH data.
• Learn to Think like your Mentor
Obviously,
if you are looking for a new trading strategy or mentor, what you were
doing before was not working for you. Thus, it is paramount to your
success as a trader that you adopt the same trading philosophies that
your new mentor or trading strategy teaches, wash your mind of what you
have learned thus far and completely immerse yourself in this new
approach to the markets. In regards to what we teach here at learn to
trade the market, this means learning to master one price action setup at a time, as this is how I initially found success in the forex market
and so it is also what I recommend all my students do. As I have stated
previously, after you master one price action setup you can move on to
master another, until eventually your forex trading arsenal is fully
loaded.
• Specialization is the Universal Key to Making Money
What
do most people that make a lot of money in this world have in common?
What do Tiger Woods and Bill Gates have common? Or how about George
Soros and Venus Williams? At first you might say “nothing” besides the
fact that they all make a lot of money. But what is the fundamental
reason, behind all else, that these people and others like them make so
much money while the rest of the world struggles to get themselves out
of bed in the morning? One word; specialization.
People
that make a lot of money focus in on one thing that they are passionate
about, and they do it over and over and over until they achieve the
result they are looking for. Simply put, you cannot really make a lot of
money at anything in life if you master nothing. All of the people in
the above example have literally “mastered” one thing, sure they had ups
and downs along the way, but they did not let that bother them, instead
they transmuted this negative energy into motivation and pressed on
because they believed in what they were doing. Had they got involved and
distracted with numerous other side-projects or interests they simply
would not have achieved what they did. In forex trading we need to focus
on one price action setup at a time and become a “specialist” in it,
get to the point where you find yourself being someone that other
traders look to for advice on the setup that you “own”. Become an
authority on each price action setup before you move on to the next,
there is no sense in doing anything half-ass in this world, and trading price action setups is no different.
