Learn Forex Trading

When you trade currencies in Forex you need a clear trading plan that you can follow strictly. Once you have that plan you need to execute it strictly without any hesitation. I believe everyone understands it.

What many people don’t understand is that you need to let your trade to mature. There is a story told in Forex trading circles: one beginner trader came to the experienced and successful trader and asked a question: “Why do you shut down your charts once you execute your trade as if you have lost interest to it?”

I think every trader can remember himself/herself sitting for hours in front of the charts and observe every tick. Now ask yourself this question: Can you make the price go wherever you want just by looking at it? Then why do we stare at the screen as if we are trying to hypnotize the price movement?

Therefore the old trader told the following story to a young one. There were father and son, they were farmers. They have plated some seeds into the soil. The young boy the next day ran to the field to dig out the seeds and see if they started to grow. He did it everyday. The result was predicable – he did not grow anything.

The same thing is in Forex trading. After you spend time analyzing the market and made a decision to execute the trade, it doesn’t make any sense to watch the charts in hope that price will go in the direction of your trade. Let the trade mature to find out if it was a winning trade or losing one

So do your analysis as best as you can. Define the entry points. Define the stop loss and take profit levels. Calculate the position size and risk. Once the price comes to the entry point, execute the trade. Then leave it to mature. Go do something else. Come back after some time to see the results of your trade. This approach will save you time and psychological energy.

Bookmark It

Hide Sites