A big problem that new traders of Forex face is in knowing exactly which strategy and technique to use from the many hundreds that they will encounter.
For most, seeing instant performance from a strategy is validation enough to start using it. As soon as the performance dips then the trader will simply abandon the system and move on.
This quest for the holy grail of trading systems is a path that countless traders have embarked on previously. As of yet, not one has found it.
The truth is that there is no ‘single’ system that can offer the consistent high profits that most people who arrive at the doors of the Forex markets expect. What is more, to look for one is simply foolhardy.
Any trading strategy that you pick up and consider trading deserves at your time. In fact it deserves more than that: it deserves that you invest the time to master it. Perhaps the biggest fault of many new traders is that they fail to ever properly invest the time to learn, let alone master a strategy.
The expectation is that as soon as it hits a loss it is simply junk and won’t ever work. These traders then abandon their systems and spend countless hours searching for the next route to instant profits.
Of course not all strategies deserve as much time as others.
It is however important that before you abandon your trading strategy that you ask yourself whether you understand it fully? For many new traders it is clear they understand very little about the mechanics of what they are trading. This is frequently a costly failing.
To trade well you need to understand the mechanics of your trading strategy inside out. If you can’t say ‘hand on heart say that you do’ then you are probably missing out.
Focus plays an important role when trading. With it you can filter out the noise around you and gain a clarity of perception. This will help you to identify setups and opportunities in the markets. It is also important when it comes to defining the boundary of your efforts. In particular it is applicable when it comes to trading your strategy.
One excellent way to improve your focus is to limit yourself to a single Forex strategy and focus on each individual element of it. Start with looking at the setup and validation. Then define the best entry levels and stop positions for each trade. You will soon find that you gain a greater understanding which in turn will help you to more readily master your strategy if you follow this approach. This is one of the biggest secrets that has been used by the true masters to get to the top of their profession.
The top traders around the globe really do know how to trade. They don’t enter the market without a plan. They master their Forex trading strategy. They demo trade so they know exactly how to execute their positions. Their skill lies in being able to look at the broad picture and establish a course of action prior to entering the market. Once they are in an open position they simply go through the motions of their plan.
So is mastering your strategy a reality? Well yes. While retaining a focus on a single strategy you can also look for ways to improve it. Defining simple mechanical rules to trade with is just one way in which you can help to remove subjectivity from your trading and improve performance. A key part of becoming a master of your strategy is to think smarter. This involves looking for ways in which you can ‘tweak’ your approach and in doing so, improve your overall level of performance.
At all times YOU have to take personal responsibility for your trading results. This is true no matter what strategy or system you use. Always remember that the performance that you achieve ultimately rests with you. Even when using exactly the same strategy, two traders can produce significantly different results with one outperforming the other. Why is this?
The most likely explanation is that one has take the time to refine and master each element of the strategy so that they know it like the back of their hand. If you want to mater your Forex trading strategy this is exactly what you need to do too.