For this weekend reading, we have a nice article from our trader Daniel who was probably inspired by the motto of our FTMO T-shirt 🙂 Daniel shares some helpful tips on how to target a trader's discipline and have a proper attitude when trading. Enjoy!
Trade what you see, not what you think.
I have to admit that I have blown several accounts before realizing that FOREX is a random market and only a consistent strategy will give me an edge.
I started trading approximately 3 years ago. My friend Gary was involved with trading and had invited me to look into it. At first, I was sceptical, but as I spent some time delving into the opportunity, I paid heed that FOREX is the vehicle that would give the financial freedom that I desire.
There is about $5.3 Trillion being traded every day in the markets, I don't need that much.
My goal is to secure a small portion step by step which will then empower me to donate more to my church, community and my homeland. I do believe that one is not truly successful until he understands the importance of blessing others.
I am foremost grateful that FTMO will give me access to some capital.
I know it will be a marathon, rather than a sprint.
I am not trying to get wealthy in just one day as the FOREX market is very volatile. My goal is to at least an average 1% daily.
Any professional trader can unequivocally agree that trading is more of science than an art. In other words, it is 10% skills and 90% psychology.
In fact, it has been proven that a trader can have a winning strategy, but turn into a losing strategy if the right behaviour is not in place.
As a trader, I will develop patience and a sixth sense to win in the FOREX.
I will trade from zone to zone, given that price tends to retrace before continuing its bearish or bullish momentum.
Below is a detailed listing of all the necessary steps that I will take:
- I will not over trade and do not revenge trade. Once I meet my goal for the day, I am going to stop trading.
- I will not get too emotional, cut losses short. I will isolate any illusion as the market makes no guarantee.
- I will wake up on time to first pray and analyze the market before trading. Failing to plan, is planning to fail.
- I will stay disciplined, focused and have patience as Rome was not built in one day.
- I will certainly stay out of the market if unsure where to go or wait for any impulsive movement.
- I will trade from zone to zone 4H and 1H. I will avoid 1 minute-chart as it is very distorted and misleading.
- If or when I lose a trade, I will unswervingly seek to understand why and ultimately avoid any repeats.
- I will follow the trading plan as it will lead to financial freedom.
- I will research and check for any price unusual volatility factors such as news or any other external factors.
In conclusion, trading is not as difficult as most assume but as humans, traders tend not to be impatient, led by greed and irrational.
Thus, with the right attitude and the proper knowledge, I can see that trading being a success and a tool to generate income and make a difference. Here is to our long-lasting partnership.