When you start out as a trader you sometimes have the feeling that you have to learn everything at once. And for the most part this is true. However, the more time you spend on cementing the core essentials or the absolute basics, the easier it will be when you move on to more advanced topics.
The Core of Forex Trading Re-Engineered
This video shows you that there is more to the core of forex trading than you might think when you first get into trading. There is more to trading than just following indicators or strategies. How successful have you been selling at every supply level? Or using a limit order at every support or resistance? Probably not so successful, because it simply doesn’t work like that. The forex market is exactly what is says it is, an actual market.
Cementing the core of forex trading
One of the most important things when starting to trade is to keep thinking logically. Simple concepts like that price will not go up forever, or that price can react from a certain area because it holds value; often seem to be forgotten. There can be various reasons for this, like psychology or the inability to grasp that the forex market works just like any other market place. So you need to figure out why things happen. Be curious, ask the ‘Why’-question all the time or use a story of another market place to make the price action more tangible, like Navin mentions in the video.
Spend a lot of time getting educated on the basic technical things like support and resistance, supply and demand and trends.
Dare to ask yourself what kind of trader you want to be and whether the strategy you’re using now is suitable for you. You need to know your strengths and weaknesses to determine which time frame suits you best and which style. Can you deal with the prospect of having a relatively low win percentage and thus quite a few losses, but when you win you win big? Or are you more conservative and steady?
All these questions are important to ask yourself. And the sooner the better. They will help you focus on the core things you need to work on most.