Is trading mindset more important than trading strategy?

Trading FX strategy idea, letting the market come to you

Dec 15 • Forex Trading Articles • 556 Views • Comments Off on Trading FX strategy idea, letting the market come to you

Looking for methods to simplify your forex trading and destressing the complete process makes a lot of sense. You’ll be less likely to make mistakes which cause a consequential loss of money.

A common mistake many novice traders make is to chase the market, which can also cause overtrading and revenge trading, the double curse of many traders.

Tracking the market continuously, while obsessively searching for trading opportunities, can be an exhaustive and exhausting process. But you can quickly eliminate this potentially self-harming habit and obsession by adopting the mantra of “letting the market come to you”.

You can use various forms of automation to trade FX, you can buy and sell fewer securities, and use elementary trading methods and strategies. All three choices and adjustments will help you concentrate on your trading goals and perhaps help you develop a trader’s mindset.

If you consider using automation, you could adapt it to trade your strategy. With the MT4 platform, you can investigate the possibilities to code and personalise MT4 to take trades that match your exact criteria.

Instead of taking manual trades when your precise market conditions get met, the platform executes trades for you. This automatic process prevents you from hesitation and doubting your judgment, while your instructions still get transacted if you’re away from your MT4 platforms, or during your sleeping hours. 

For example, suppose you’re a swing trader who uses a two technical indicator trading strategy to trade several major forex currency pairs. In that case, you can instruct the platform to execute a trade when the indicators align. Let’s suggest when the MACD and Bollinger Bands meet your requirements. MT4 will carry out your exact instructions when the swing has ended according to your analysis.

Suddenly, with one adjustment to your overall approach, you’re not chasing the market as it rises and falls, and you’re not continually staring at charts waiting for something to happen. You’re now waiting for the market to come to you based on the traps you’ve set.

Consider yourself to be an angler on a lake. You’ve got all the necessary tools in your fishing tackle box. You attach the bait to your fishing line, you cast your line, you place your rod quietly by your side on the bank of the lake, and you patiently wait for the fish, just the one fish, to bite.

As an experienced angler you know you’ll gain very little by constantly re-casting, or by displaying impatience, and some days the fish won’t bite. But you’ve set out your stall, you’ve got your plan, and you’ll stick to it because most days you’re successful. But even the days you fail you’ll still enjoy the experience.

So, let’s adapt that angler metaphor to our trading. You have the right tools to do the job – technical analysis, fundamental analysis, and your MT4 platform is the equivalent of a fishing rod. Your bait is the two technical indicators you’ll use. You’ve also decided what risk to apply to the trade, and in comparison, the angler would consider where the fish are most likely to bite, perhaps based on his experience.

Unlike the angler, you don’t have to sit by the bank of the lake drinking tea or soup, while you wait for a bite as you quietly listen to music through your ear pods. You can walk away from your desk, put your laptop into sleep mode and get on with other stuff, checking on your orders occasionally through your smartphone MT4 platform, which you’ve programmed to alert you of any changes. And like the angler, if you don’t have a winning day, you can still enjoy the process of forex trading without feeling stressed.

Comments are closed.

« »