Forex trading question is – what turned my trading around as a beginner in Forex trading to become better trader?
There were times when I feel like giving up and sometimes I have give up for few months and returned back to trading. I did not know does the trading can give me money or trading is useless where you only lose the money.
The only who earned money was the broker who earns 100% through spread on each trade you open.
It passed long time trading and losing the money in the market until something turned my thinking around and seeing trading in different way.
Way of trading, thinking and acting has changed in better direction where the trades have start to give better results.
I have made conclusion that the only thing changed was the experience I had acquired through time. I saw the trading with different eyes and I have confirmed what I was reading on the Internet from others.
Here is Forex truth and my findings what do I think that you need to change if you want to see better results.
Limiting My Emotions Helped to Become Better Trader
At the start of trading career I did not care to much about the emotions that are influencing the trading. I even did not know anything about emotions in trading and that they are affecting me.
Through time I have read that the fear and greed are among the influential emotions in trading. And it has shows as the truth because when I dissect the trading problems into small problems I see emotions influence.
Emotions are messing with your head and change they way you see the market. It makes you act differently on the trade you would execute on demo account, without emotions, in a correct way.
But on the real account everything changes. I see each trade differently and when I want to open the trade I start to wonder will I lose the money or not. And is my trading signal good enough because I do not want to lose that money.
From the other side I start to check the market and when I see trending market where the price is heading in one way I am eager to enter into that trade. I want to be in so I do not miss all that money. But I also think when the trend is over so I know when to exit with profit. If I enter into trade will the price reverse and I will I lose all the money.
Take a Rest
When I have changed the way I think and when I push back emotions influence I start to see the market more clear. My decision does not make me feel differently and when I open the trade I open it like a robot.
If the market moves against me I have set stop loss with acceptable loss. When Stop Loss activates I just start to move forward looking for another trade.
If the trade is wining I just start to search for another trading signal.
But this way of trading I cannot hold for to long. If I stay to long trading I start to lose my focus and when that happens I see trading signals less clear. I see more trading signal which most of them become very bad signal.
Then I make a rest and move away from the market. I am away from the market until I feel ready. And being ready is to see the trading signal like a robot.
I have stopped caring to much about the trading and trading results become better. I still care about the trading but it does not affect me.
Download FREE PDF file where I have listed the points which I am caring about.
I had very high expectations at the beginning of a trading career. I had a plan to retire with my 30 or at least quit my daily job and only focus on trading the Forex. At that time I was around 23-24 years old and I was on a college.
It was really big goal and I have started to do my best to reach trading results. But it did not happen.
My trading results where bad and I could not become consistent Forex trader. I was losing the money and losing very fast. I have open trades with large volume where the one or two bad trades wiped whole trading balance.
If I have open more trades with smaller lot size I was over trading which led to the same result. Eventually I have lost my account balance.
Change Your Thinking to Become Better Trader
And that was the time when I have done same trading mistakes in a circle. Sometimes I have give up from trading and after few months returned back to trading.
When I changed my thinking in way where the trading will not be my only career and it will be side job income I have started to care less. My trading results were not focused on earning a lot of money.
I could open smaller trade with smaller gain and eventually my trading account started to grow. Because I did not care to much on the account balance my trading results were pilling up and money started to flow.
I have set another goal that was realistic and it was to have 6-7% per month of gain. If I have enough money on the trading account I could double it up each year. And by using compound effect I could become millionaire in a 10 years.
That is the road I am right know on and I will maintain the same goal for the future trading. You should think about doing the same if you are struggling and you want to see some progress in trading to become better trader.
Not Having too Much Open Trades That Exceeds Margin
I have already said that the the problems were too much open orders and too high volume on each trade. When you open too much orders or with too high volume you spent Free margin too fast.
That way you do not leave any space for the trade to breath and if the price move against you, your trade will close with stop loss.
Each trade you open must have space to breath, at least for the daily average pip range on the trading pair you are trading. When you give enough space for the trade, the price will go up and down without hitting your stop loss.
What turned my trading around to become better trader was not opening too much trades. One or two trades that leave me Free margin at half or even more. I have reduced the volume to the lowest possible so my trades can be losing without losing to much money on my trading account.
Even with smaller number of trades and with less trading volume on each trade I have managed to be profitable and satisfied with my income.
The reason was in my larger account balance which provided me enough trading balance and enough profit even with the small volume, like micro lot size.
One thing you need to remember from this part of the post is that you need balance that will give you enough profit with few percent. Large balance will allow you to have wider stop loss where you can open less number of trades but also to have enough profit when the trade close.
You will avoid over trading with to much trades open and you will avoid Margin Call which is activated if you do not have enough Free Margin.
My Trading Charts and Strategy Made me Become Better Trader
All above said would not turn my trading around to become better trader if I did not change the way of using the charts. By that I mean charts without to much indicators and charts with clean bull and bear candlestick.
I am using white background with white and black candles. You can check my Metatrading 4 chart settings where I have show how to setup charts on the Metatrader 4.
The trading strategy I am using is the price action where I search for certain candlestick patterns that have proved in the past.
When I combine clean charts with price action I have clean chart with clean trading signals. That way I have bypassed the messy charts with many indicators.
I have tried many trading strategies and EA to get the best result but I could not stick to any to long. In the period I have used them I did not make any profit.
Only when I have continued using the clean charts and clean trading strategy with the risk management my trading results were improved. My trading turned around and I have seen results which were the findings I was looking for.
What I can suggest from my experience to turn your trading around and become better trader is do not chase for quick money. You should not chase the idea becoming rich over night by trading on the Forex market.
That way of thinking will pull out the worse from you regarding trading. Eventually it will lead you to lose all of your money you have invested.
You need to focus on smaller goals, control emotions, invest in the trading knowledge, use the trading strategy with trading plan, control your risk on each trade and plan to trade for longer time period.
I have made FREE PDF for you where you can download the list with points which turned my trading around and give me steady income. You can use them and test do they help you or you can use them and modify in a way that suits you.
For beginners who does not know how and where to start with trading
In the workshop I will tell you
what steps to do in order
to transform yourself into a trader