The Slow and Steady Long-Term Approach

Filed under: Learn Forex Trading |

Picture 2It seems that everyone is in a big rush to get where they are going these days (especially if you visit a big city!). However, this is not necessarily the way to riches in the world of forex trading. Sure – there is a lot to be said for buckling down and working hard. To some extent, to begin with, this will be extremely beneficial to you if you want to trade the forex markets. You should try to learn everything that you can about the markets, including their history, how it works, and about trading methodologies. However, once you have done your homework (and this might take several months or more) and have chosen a trading methodology that suits you, this hard working approach might actually prove to be counter-productive. Let me explain…

 

You see, if you sit at your charts all day analysing the markets, a strange thing can happen. It is a bit like walking in the snow for long periods. You get ‘chart blindness’ (similar to ‘snow blindness’). You start to see things that are not really there, and take setups that you really should not be taking. You lose objectivity, and get addicted to taking trades. This is not trading – it is gambling, and the two should be mutually exclusive.

 

So how do you overcome these potential pitfalls? Be lazy! That might sound like a strange thing to say, but if you get some distance from the markets, and only check your charts, say, four times per day for ten to fifteen minutes per time (that is a maximum of an hour per day), you will be much more objective and the really good setups will jump out at you – screaming at you… “TRADE ME!!!!”. However, when you look at your charts all day, these same setups only whisper amidst a thunderous symphony.

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