There is an old Far east saying that says “Good things take time” and completely prosperous investments do too. As a foreign exchange trader I have discovered that the more patient you are the more profit you generate from your Forex trading.
Forex strategy trading is all about making wise decisions at the right time. In this article I would like you take a look at how you can acquire the necessary amount of patience for profitable foreign currency trading.
It is not about amount but the grade of your trades: It is impressive how a large number of folks out there believe that by taking more trading positions they will generate more revenue. I have actually found the exact opposite to be true. A variety of people will differ in opinion with me on this but that’s ok.
I firmly believe that the more trades you take the more times you undress your account to risk and the more room you have to commit accidents. In average I take about only 5-10 trades per month and I focus on higher time frames.
What is the reason? Because the big money is in the higher time frames. All the hedge fund managers, money managers, and institutional traders are looking at them. Due to this fact more profits can be generated in a daily or 4 hour chart than a 5 minute chart.
I find it really interesting how many of my fellow traders who trade lower time frames make less profits or the same revenue I earn but with about 2 times more work from their part. Efficient Forex trading can only be accomplished through working smarter not harder.
Focus on the process not on the profits: I have always stated that if you focus on how much revenue you are going to make you will not focus on trading productively and making smart conclusions.
The other day I was reading one of my favorite books called “Market Wizards” by Jack Schwager. One of the famous traders he interviewed for his book mentioned one thing that had a tremendously strong effect on the way I see foreign currency trading.
The name of this trader is Paul Tudor Jones. He is a legendary futures trader and he once said “everything gets destroyed a hundred times faster than it is built up. It takes one day to tear down something that might have taken 10 years to build”
This is completely true for foreign exchange trading. If you don’t know what you are doing and your risk management is off you might just blow up your trading capital (that maybe took you years to save) in a matter of hours. This is why each and every trader needs to focus on the process instead of focusing on the profits. Remember that playing a strong defense will be more valuable than playing a firm offense.
A successful trading strategy plus patience and self-discipline is all you need to succeed: Most foreign exchange traders have a really difficult time concentrating on one strategy and for that reason, they lose more money than they produce.
Many of my friends and trading partners come to pay a visit to me to my office because they wish to see how I trade and most of them are completely puzzled after a couple of days. They hope to see me trading all day long, working hard at it, and always looking at my computers.
Instead of that they are astounded when they know that I only place about 1-3 trades per week and monitor them as the days go by. Then the rest of my week, I am working out, going out to places, spending quality time with my family, or on vacation.
The reason why I am able to do this is because I have concentrated all of my energy on becoming more effective and trading smarter, not harder.
You can do this as well by concentrating on higher time frames, taking fewer trades, and focusing on the process instead of the profits. Stay tuned as we will publishing more Forex strategy trading helpful hints very soon.
From this article I have learn so many good as well as important things about Forex trading. Even I realized why I loose money most of the time when doing a trade. The key to success in currency trading is to be patient and to make wise decision at right time.
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