How To Trade Blog: April 2021

Monday, April 26, 2021

Can We Make Money From Forex Trading If Consider It As A Side Job?

You are a busy person, aren’t you? You have a lot of stuff to deal with in your life, don’t you? But you are very interested in the opportunities that the forex market offers. And you wonder why not take advantage of Forex trading while doing your daily job.

You have read a lot of documents about trading. And it seems to be a “profession” that takes a lot of time. So the question here is: can you consider trading as an “overtime” job? And does this have a negative effect on your trading results?

My answer is: you absolutely can make money from trading Forex. In fact, this is even beneficial for your trading results.

In today’s article, I’ll discuss with you how to streamline your Forex trading with your other daily job as well as take advantage of it to turn you into a better trader.

How to trade Forex smoothly when your job has a lot of work to solve daily

Regardless of what you think or read about Forex, it is not necessary for you to sit in front of the electronic board for hours every day. The way I trade only requires 30 minutes to 1 hour in total for a day no more.

You may wonder: “How is it possible?” The answer is simple. Focus on the daily candle. Even if you have a full-time job or you have to go to school all day, etc., daily candlesticks are the perfect solution here. By focusing on daily candlesticks, you only have to look at the electrical board a few times a day.

How to trade Forex smoothly when your job has a lot of work to solve daily

Daily candlesticks are the most important candles of the day, of course. Because it shows how prices move in a whole trading day with only 1 candle. If a good signal appears, you will see it on the daily candle (D1) right after the New York trading session closes. This makes your Forex trading job very simple, fast, and easy.

If you find that the candle matches the criteria set out in your trading strategy, place an order, and turn off the electronic board until the next day. Let the market do its part, do not interfere or expect anything. If no candlestick is feasible, your job is to turn off the electronic board and turn it on the next day.

This is basically a way of using daily candles to maintain your trading (effectively) while ensuring all other daily tasks. And in my opinion, the daily candlestick is the “most reputable” candle, which you should focus on the most, out of all other candles on the chart.

Why do you need to stay clear of the electronic board?

Focusing on daily candles and datum when the New York session closes is a way to help you secure other jobs. Besides, it is also a great way for the vast majority of people to trade and increase the chances of success in this forex trading job.

The point to note here is we humans tend to want to trade a lot and easily fall into the “addicted” state of transactions. When you have other work to do all day or are busy with studying at school, you seem to have a natural dose of antibiotics to help avoid this situation.

Why do you need to stay away from the electronic board?

So don’t feel like you (will) miss out on many opportunities in the market because you’re busy doing other stuff all day. That feeling is greed and fear. You should feel glad that you will not be stressed when you get caught up in the market and lose money for it.

As I have shared many times, daily candlesticks are the “most reputable” candles. They are likely to bring the highest profit compared to the other candles after it. Weekly candles and monthly candles give us too few opportunities when a month only has 4 weeks. And I’d rather lose money with quality opportunities.

The less you are affected by the market, the more you can avoid shooting yourself in the foot.

Being “distracted” can help your Forex trading job have better results

You don’t have to be lurking in the market all the time, and you shouldn’t be.

Nobody can trade successfully if they sit all day in front of the chart screen. It will make you trade too much. And you will easily fall into the situation of losing money continuously. So if you don’t have a job or any other hobby that helps you stay clear of the market, then you should consider getting one. Because if not, and you continue to sit and watch the market for hours, you can easily become a trading addict.

You should think that your current (or upcoming) job is a good way to “force” you to get off the electrical panel. Most of the up and down price movements in the market are meaningless. It is a waste of time spent on them.

Being "distracted" can help your Forex trading job have better results — Being “distracted” can help your Forex trading job have better results

A career, a job, or a school is like a shield that helps you avoid a lot of meaningless movements of prices in the market. You absolutely can (and should) make your trading suitable and not interfere with your other daily tasks. It even helps you trade better.

All you need to do is understand and accept the importance and significance of the daily candle (D1). Just focus time and energy on it.

Summary

It’s great that trading forex turns out to have no effect on your daily routine. Conversely, when you do such transactions, you increase your chances of success and earn (a lot) money with forex trading.

Try it out if you are not trading like that. I believe that the result you get will not only increase the amount of money in your account but also that you will not have much stress and have a lot of time and energy to perform other tasks.

I hope you have a good trading day.

The post Can We Make Money From Forex Trading If Consider It As A Side Job? appeared first on How To Trade Blog.

source https://howtotradeblog.com/make-money-forex-trading-job/

Thursday, April 22, 2021

To Become A Forex Trader You Need The Power Of Perseverance

Fighter pilots are an occupation that requires exceptionally high skills that ordinary people like us find very complex. However, for those who do that job, it’s all just the work habits they have repeated hundreds or even thousands of times. Surgeons, magicians, etc., or highly skilled careers are the same. Let’s relate this to our job as a Forex trader.

Surely, outsiders also think that this is a very complex job with all kinds of theory and confusion, with lots of information back and forth, etc. They do not understand how we can make money from that “super messy mess”.

What do the people in the examples mentioned above have in common? That is perseverance.

You’ve probably read a lot about (good) habits that are the “key” to help you succeed with forex trading and virtually every field of your life. But perhaps not many people know how to establish these good habits and maintain them. In today’s article, I would like to discuss this issue.

Growing your account is like building muscle

Persistently going to the gym, even if that day you don’t want it at all, will give you the result. You will get stronger (both body and soul) and your body will be more good-looking. Persevering healthy eating, staying away from alcohol, tobacco, etc. will also give you the result. You will be healthier.

For those of over-sized bodies with too much fat, it is very difficult for them to practice healthier eating, or go to the gym hard. Because they HAVE HAD a lot of bad habits like being lazy, eating unhealthy foods, and creating “junk” in the body.

For people who are healthy and lead a healthy lifestyle, they feel comfortable and at ease doing the right exercise, jogging, and eating. Because they have persisted for a long time with these habits, making them an integral part of everyday life and becoming part of who they are.

Growing your account is like building muscle

Similarly, if you persevere to get up early to go to school or work, you know that it will soon become a habit. On the contrary, if you get used to staying up late at night, it can also turn into a habit. And changing is difficult and time-consuming. Sleeping and getting up early helps you become a healthier and more active person. So obviously we should take advantage of perseverance and repetition to form good habits.

Persevering learning and cultivating yourself turns you into a more knowledgeable, more successful person. Thereby, you can earn more money than those who are not willing to learn.

Napoleon Hill wrote in his “Think & grow rich” as follows: “We are what we think about and do”, so you have the right to decide for yourself good or bad habits, based on perseverance in the action.

If you smoke every day, it quickly turns into your bad habit. If you persevere and discipline your capital/risk management reasonably, persistently trade with your strategy, and do not indiscriminately trade, etc., you have been forming extremely good habits for trading. And the result will come very quickly. You will become a successful trader and investor, not only in forex trading but also in stock or real estate trading, etc.

Persistence in building habits of a successful Forex trader

Perseverance and sticking to your trading strategy helps you to control and master it. Only then, you may really know whether it works or not. Changing trading strategies constantly, finding, and hastily testing new strategies that “other people” tell you that they can bring you a lot of money, will cause you great damage in both short term and long term.

How do you know if a strategy will work if you don’t really understand it, master it and spend enough time to test it? You might ask me how long is enough? My answer is at least 06 months.

Persistence in building habits of a successful Forex trader

Perseverance in risk management is very important. Always fix the risk amount in the dollar (not the percentage %) for each trade. This helps you control your losses within a tolerance limit, both on your account balance and emotions. Many traders often change their risk levels. Maybe only after 1 or 2 winning orders, they are ready to bet bigger, then lose all the profits and even burn out their accounts.

Maintain your risk level in place, even after a (big) loss or a (big) win. This is a very important key to the difference between a professional Forex trader and an amateur.

Persistently monitoring your trading orders and recording daily trading reports (a form of transaction log) are the things you should do to have good and effective trading habits. These things do not take you much time. It is also quite boring and is probably the most “paperwork” stuff you have to do as a Forex trader.

Maintain your risk level in place, even after a big loss or a big win is very important

Most traders do not do these things. They do not review on orders that have ended. They do not look back at the mistakes to make corrections or the right things to promote. And they become easily undisciplined and fail to create and maintain good trading habits to succeed in the market.

Perseverance is the catalyst of successful trading

A fighter pilot begins learning in classes. He then practices virtual piloting on computer screens. And eventually, after years of learning, he practices with real fighter planes.

A professional Forex trader also starts with courses. He studies online, meets these and those teachers, finds himself a suitable method then trades on a demo account. And later, when he feels confident enough, he can start trading on real accounts. From there, he gets along to live with the trading career.

Without patience, you cannot become one of these two examples or perhaps every other example of success in life. I have a simple formula for you: perseverance = habit = result.

The "formula" of a successful Forex trader — The “formula” of a successful Forex trader

Be patient with your trading strategy. Stay persevered in risk management. Consistently maintain your composure after every order whether you win or lose. That is you are giving yourself the best opportunities to make money in the long run.

Most traders lose money as a result of not having perseverance with good trading habits. Instead, they establish bad habits such as non-compliance with their trading strategies, undiscriminating risk management, excessive trading, etc.

Conclusion

The good news is you have the power to choose what you will focus on. You can choose to establish and repeat good or bad habits (you already know what they are).

In trading, you just need to fight yourself, not anyone else, or any other force. Train to be better than yourself yesterday on your way to becoming a successful forex trader.

The post To Become A Forex Trader You Need The Power Of Perseverance appeared first on How To Trade Blog.

source https://howtotradeblog.com/to-become-a-forex-trader-you-need-the-power-of-perseverance/

Saturday, April 17, 2021

How To Use The Piercing Pattern Effectively In Forex

This is a candlestick pattern that offers great confidence every time it appears. This is a sure warning candlestick pattern that the market will recover in the future. That’s how traders talk about the Piercing candlestick pattern in Forex.

In this article, howtotradeblog will introduce you to this special bullish candlestick pattern. Along with that is a guide on how to use it in Forex so that it is most effective.

What is a Piercing candlestick pattern?

In Forex, Piercing Pattern (also known as Rising Sun) is a special Japanese candlestick pattern consisting of 2 candles. The first candle is a strong bearish candlestick. The second candle is a green candle with the opening price lower than the first candle closing price. Also, the length of the second green candle should be at least ½ of the body of the first candle.

What is the Piercing candlestick pattern in Forex?What is the Piercing candlestick pattern in Forex? — What is the Piercing candlestick pattern in Forex?

This is a strong bullish reversal pattern in the market. They usually appear at the end of a downtrend and serve as a warning signal for a strong market recovery in the future.

Market sentiment and the significance of the pattern

The whole market sentiment plays out in this pattern as follows: Initially, a red candle with a long body appears, showing that the market’s downside is still in progress. The sellers are still dominating.

However, when the next trading session opens, a gap down appears showing a breakout of support left by the previous session (closing price of the 1st candle). However, instead of continuing to decline, it suddenly turns up, creating a green candle that closes more than half of the previous candle. The creation of this pattern shows the price breakout and warns that the sellers have used up their full strength, creating confidence for buyers to push prices up again.

Meaning of the Piercing candlestick pattern in Forex

When combining 2 candles in this pattern, you will receive a Hammer candlestick pattern. This is a familiar strong bullish signal. The higher the price of the second candle closes compared to the first candle, the stronger the bullish signal will be.

On price charts, the Piercing pattern usually appears at the bottom of the market. They give traders a strong belief that the price will rise again.

The pattern usually appears at the bottom of the market

How to trade Forex effectively with a Piercing pattern

Here, I will show you how to open a Forex order effectively when this pattern appears on the price chart. This is just a reference trading strategy using the Piercing pattern. For high precision trades, you need to combine it with other trading signals.

This pattern is a strong signal that the price will rebound. So you should open BUY orders with it only. You can open orders with the stop-loss and take-profit as follows:

+ Entry Point: As soon as the price completes the Piercing candlestick pattern.

+ Stop-Loss: At the wick of the second green candlestick in the Piercing candlestick pattern

+ Take-Profit: when the price touches old resistance levels that have been formed in the past.

How to trade Forex effectively with a Piercing pattern

All the knowledge that we have compiled is just theory. In order to be able to trade like a successful trader and bring real profits, you need to practice hard to sharpen your ability to trade in real terms. So get familiar with the Piercing pattern today on a Demo account to verify it first.

The post How To Use The Piercing Pattern Effectively In Forex appeared first on How To Trade Blog.

source https://howtotradeblog.com/piercing-pattern-forex/

Thursday, April 15, 2021

What Is Rising Three Methods Pattern? Effective Trading Strategy In Forex

Rising Three Methods is a pattern of bullish trend continuation. This pattern is very useful in an upmarket. In this article, I will introduce you to this special candlestick pattern. Along with that is how to trade Forex effectively with this pattern.

What is a Rising Three Methods pattern?

This is a bullish trend continuation pattern consisting of 5 candles. The first candle is a strong bullish one followed by 3 bearish candles but with a short height and ended with a bullish candle. This is a warning signal that the price will continue to increase in the future.

Structure and characteristics

The Rising Three Methods pattern has the following recognizable characteristics:

+ The first candle is strongly bullish and has a long body.

+ The next 2 or 3 candles move downwards in a sloping direction, but not beyond the first candle.

+ The last candle must rise sharply and go beyond the closing price of the first one.

+ If a gap appears between the 4th and 5th candles, the effectiveness of the pattern will become higher.

Psychological movements within the Rising Three Methods pattern

This pattern signals a continuation of the uptrend. It often occurs during uptrends. Often after this pattern, the market will continue to go up strongly.

After the market creates a bullish candlestick, some traders begin to take profits. At that time, the buyers temporarily give up the game to the sellers. However, prices go down at a slow rate. After 3 sessions, the decrease is still not equal to the increase in just one previous session, showing that the selling force is not strong enough and the market confidence is still there.

Next, a very long bullish candlestick appears, confirming the continuation. It creates confidence for those who are hesitant and pours a bucket of cold water down on those who have just placed SELL orders in the previous 3 sessions.

Psychological movements within the Rising Three Methods pattern

How to trade Forex with the Rising Three Methods pattern

Here, I will guide you on how to place orders effectively with this pattern in Forex. This is a signal of a continuation of the uptrend. Therefore, please focus on opening BUY orders when the Rising Three Methods pattern appears.

+ Entry Point: As soon as the price completes the Rising Three Methods candlestick pattern.

+ Stop-Loss: At the opening price of the first candle.

+ Take-Profit: when the price touches old resistance levels that have been formed in the past.

How to trade Forex with the Rising Three Methods pattern

Notes when using this pattern in trading

+ When trading with this pattern, it is best not to trade at strong resistance zones because these zones create strong resistances that limit the possibility of the uptrend continuation.

+ Some traders often prefer to open orders before the completion of the 5th candle to get better buy points. However, with this entry way, you need to react quickly to sudden market fluctuations. Therefore, this may not be suitable for new traders.

Above is an article about the Rising Three Methods pattern provided to you by howtotradeblog. Get familiar with this pattern on a Demo account before switching to live trading with it.

The post What Is Rising Three Methods Pattern? Effective Trading Strategy In Forex appeared first on How To Trade Blog.

source https://howtotradeblog.com/rising-three-methods-pattern-forex/

Wednesday, April 14, 2021

Falling Three Methods Pattern And How To Trade Forex Most Effectively

As one of the popular trend continuation patterns, Falling Three Methods is the favorite signal of price action traders. In today’s article, I will introduce you to this special pattern. Along with that is how to effectively trade Forex when it occurs.

What is the Falling Three Methods pattern?

This pattern is a special Japanese candlestick pattern. It consists of 2 to 3 weak green bullish candles that fit neatly in 2 strong red bearish candles.

What is a Falling Three Methods pattern?

Its name means that before the price continues to drop sharply on the last candle, it usually recovers slightly, creating 3 slightly green bullish candles. This is a very effective trend continuation signal for you to consider opening a SELL order in a downtrend.

Structure and characteristics

The Falling Three Methods pattern has the following recognizable characteristics:

+ The first candle is strongly bearish and has a long body.

+ For the next 2 or 3 green candlesticks, they indicate an upward rebound of the price, but not beyond the first candle.

+ The last candle must drop sharply and go beyond the closing price of the first one.

+ If a gap appears between the 4th and 5th candles, the effectiveness of the pattern will become higher.

Psychological movements within the Falling Three Methods pattern

This pattern signals a continuation of the downtrend. It often occurs during downtrends. After a Falling Three Methods pattern appears, the market will often continue to lose points miserably.

When the market produces a strong bearish candle, some traders begin to take profits. The sellers temporarily give up the game to the buyers. However, prices go up at a slow rate. After 3 sessions, the increase is still not equal to the decrease in just one previous session, showing that the buying force is not strong enough.

Next, a very long bearish candle appears confirming the trend continuation. It creates confidence among those who are hesitant that prices will continue to fall. At the same time, it pours a bucket of cold water down on those who have just placed BUY orders in the previous 3 sessions.

Psychological movements within the Falling Three Methods pattern

How to trade Forex effectively with the Falling Three Methods pattern

Here, I will guide you on how to place orders effectively with this pattern in Forex. This is a signal of a continuation of the downtrend. Therefore, please focus on opening SELL orders when this pattern appears.

Open an order as follows:

+ Entry Point: As soon as the price completes the Falling Three Methods candlestick pattern.

+ Stop-Loss: At the opening price of the first candle in the pattern.

+ Take-Profit: When the price touches old support levels that have been formed in the past.

There will be many more advanced uses and effective Forex trading strategies when you know how to combine this pattern with other signals. Get familiar with this strategy on a Demo account today to check it out.

The post Falling Three Methods Pattern And How To Trade Forex Most Effectively appeared first on How To Trade Blog.

source https://howtotradeblog.com/falling-three-methods-pattern/

Saturday, April 10, 2021

Use These 7 Tips When You Lose A Lot In Forex

All traders have and will have experienced periods of continuous loss. It is an indispensable part of the trading career. But if you lose so much, it is time for you to review your Forex trading strategy and take responsibility for those bad results.

No doctor will be able to “fix” your problems and errors right away or help you instantly make money in the market. However, I do have suggestions for steps to get you back on track. This article is for you to end a long series of losses and make a step towards making a profit on a very recent day.

7 steps to do when you lose in Forex

Acknowledge that you are the main part of the problem

Our greatest enemy is ourselves. When you were born and raised, we have experienced a lot of different emotional states such as greed, fear, hope, regret, etc. All of them are basically what makes you lose in the Forex market.

So for the first step, you need to understand that you are the cause of the failures. It is not because of the broker, or because recently the world has been too erratic.

We need to master and control ourselves if we want to be a successful trader. This is a really hard thing for everyone. So most people who trade in the foreign exchange or securities market always go home with empty wallets.

Acknowledge that you are the main part of the problem

When you understand this, through a reasonable trading strategy and discipline to implement the set principles, we can gradually control ourselves and effectively trade.

Take a break for a while, temporarily stay away from trading

The next thing you need to do to “fix” the serial losses is to stop trading for a while. I’m sure you have thought about this. However, most people will trade more and more, even when they still lose money and still burn out their Forex accounts. They only stop until they decide not to enter this market ever again.

This step to accomplish is also very difficult. But this is where you need to stop to see everything to avoid losing control of your emotions. From there, you may know what you are wrong, how to fix it, etc.

Take a break for a while, temporarily stay away from trading

You can also trade with a demo account, which is also a good way to keep a feel for the market. Always look at reality, accept it and you will be on your right track.

Become a “boring” trader is a useful way to get rid of loss in Forex

Boring is one of the essential elements of trading. I have had a separate article about this. You can read it here.

Trading is not a walk to the mall, the entertainment hall, or the casino. You should not feel excited, impulsive, or full of emotion once you observe the market movements.

You should plan each order. It may lose or win, but it is not allowed to surprise or shock you. It is all about logic. You know and have accepted the loss or profit of each Forex trading order (by stop-loss and take-profit). Nothing makes you excited here at all.

Become a "boring" trader is a useful way to get rid of loss in Forex — Become a “boring” trader is a useful way to get rid of loss in Forex

Be more consistent and confident with your trading strategy

If you are having a long losing streak, you probably don’t have the right approach to your trading job. This goes hand in hand with my suggestion about trading boredom. Basically, you need to establish a trading habit in the long term. There should be no significant changes in the next few weeks, months, or even years.

Every day, you spend a certain amount of time observing the market, identifying trends, resistance/support levels, good candlestick signals if any, and so on. Without the appearance of a good chance, turn off your computer and wait until the next time to turn it back on.

Be more consistent and confident with your trading strategy

Repeating these consistent habits in your trading strategy will help you avoid a lot of emotional impacts. You can keep your mind clear and have an objective perspective. Thereby you can avoid loss and mistakes when trading Forex in the long run.

Know your level of risk

For each of us, we have different levels of risk. No one is alike. How much will you accept to lose for a losing Forex order? If you can’t answer this question, this is one of the big reasons you are in a constant loss.

Successful trading is about managing your risk well. Many traders ignore it and don’t focus on it. Instead, they often think about how much money they can make. You must become a successful risk manager before becoming a successful trader.

Do not risk too much (compared to your balance) or especially without a stop-loss. If you are trading without a good sleep every night because you fear to lose that amount, then that means you will lose money very quickly.

Many people have very high winning rates, but with only 1 losing order, they could empty their accounts. Place orders with the amount in stop-loss that makes you comfortable. Do not go greedy to trade big to make a big profit. You can trade for the rest of your life. If you want to be fast, you must take it slowly.

Don’t look at low time frames

You should not (or cannot) impatiently seek trading orders anytime and anywhere. If you do, you’ll drive yourself crazy and burn out your account at the same time very quickly.

Many traders think that by observing time frames such as m5, m15, m30, they can increase the probability to find good trading orders. From there, they can increase the number of orders as well as increase the amount of money earned.

It is an illusion. Keeping track of low time frames means that you have orders with low winning rates and increase the risk of losing money on every poor quality order.

Don't look at low time frames — Don’t look at low time frames

Review your trading strategy

If you are trading with an unreasonable strategy, then you may have a bad “tool”. It makes you unable to make a profit, or even fall into a long-term loss.

A good trading strategy, in my opinion, must be simple first. You should not rely on too many tools and indicators. Nor should you watch too much news to decide whether or not to enter an order. Too complicated, too confusing, and too much multidimensional information will make you confused and inaccurate during trading.

However, you should not immediately assume that the Forex strategy you are using is wrong and ineffective when you lose. Consider yourself first. Think of your own mistakes before blaming the strategy. Maybe it’s not it which is ineffective.

Summary

If “unfortunately” you are in a series of long losses, I hope with this article, you can look back and improve your trading results. Trading is not a battle between you and the broker, nor between you and other investors. It’s the battle between you and yourself.

The post Use These 7 Tips When You Lose A Lot In Forex appeared first on How To Trade Blog.

source https://howtotradeblog.com/use-these-7-tips-when-you-lose-a-lot-in-forex/

Monday, April 5, 2021

Boredom Is Essential In Forex Trading

If you are trading in the right direction, then it should be boring. You should not do anything most of the time, and you need to feel really comfortable with this. In today’s article, I will explain my view why boredom is essential in Forex trading.

Why does boredom bring success to Forex trading?

Boredom is essential in Forex because it often means that you are making money in the long run. On the opposite, there are traders who are up (very) high and sometimes down (very) low.

A successful trader knows more or less than what he or she expects every day when it comes to trading in the market. They know what they will immediately need to do if X happens, if Y touches, or if Z forms, etc. They always have a plan, control themselves, and stand against up and down emotions. And so, basically, Forex trading, to them, is boring.

Why does boredom bring success to Forex trading?

Money is “attracted” by a trader who can control his/her body and mind, rather than someone who is inconsistent, illogical, indisciplined in their trading. Controlling yourself, for the most part, is very “boring” work. Because it is that you don’t let your emotions influence or even appear. Or we can say you must feel nothing at all times. The sooner you do this and maintain it, the shorter you will become a successful long-term trader.

Let’s discuss why boredom is essential in trading. From there, you may want to make this job boring. You will no longer feel excited, sad, or depressed anymore. It is also time you need to learn a new skill, counting money.

Trading is not your night-day entertainment

Often, many traders look for “entertainment” in the market, though they are not intentional. Trading can, of course, be fun, especially when you make a lot of money every month. However, feeling like being “entertained”, excited, and fun with trading is the wrong direction.

Based on my experience and observation, if you’re feeling entertained, excited, and fun, be careful. It is a sign that you are not trading properly. It will drag you to a long-term downward slope, both in mind and in your account balance.

Trading is not your night-day entertainment

You feel excited, nervous, angry, or discouraged, etc., every week on the market. If you are going through too many emotions, it is extremely dangerous in trading. Your state of mind should always be clear, calm, and somewhat boring every day. Try this for a period of 6 months to 1 year, you will see your trading results much better.

Don’t put yourself day by day, week by week in a state of excitement or upsetting, both of which are not good. Make your mood always consistent and somewhat “boring”.

The job of a Forex trader should include boredom

Trading is not about gambling or a game. It does not exist to entertain us. We need to do other jobs (office, business, etc.), complete all the businesses or plans of the day, and let the forex market do its own thing. We need other jobs besides trading. This is both to ensure a secondary (or primary) source of income, and to keep us from being “drawn” into the foreign exchange market and thereby making the wrong decisions.

The job of a Forex trader should include boredom. And you should not think of how to do more to improve it. If right now you feel your trading is boring, then congratulations to you, you are on the right track.

If you are making forex trading a major source of income, it is easy to get you into a “trading addiction” state. You need to trade too much constantly because of the pressure to make ends meet. Find a job, or some hobby (it is better if you can make money from it) to diversify your sources of income. This creates a stronger financial foundation, turning forex trading into an emotion-free ride.

Trading orders take time which is more than you expect

Small traders often don’t understand how long it will take for a good trade to appear. They ask themselves, they wonder what to do when the signal never shows up. And then they want, they need something to show up, and that thought makes them see the less obvious “opportunities”.

You just wait, wait forever but do not see the opportunity to appear. This feeling is uncomfortable. It will be even worse if forex trading is your main source of income, especially your only source of income. Turn this feeling into boring and indifferent. You need to understand that it will take a long time to wait for a good order. And if you open the computer and nothing is worth observing, shut it down and do something else. How boring!

Trading orders take time which is more than you expectTrading orders take time which is more than you expect — Trading orders take time which is more than you expect

You need to trade as “if”

I guess most of the readers in this blog are trading with small accounts to learn before starting with a bigger account. And you always want to turn this small account into a big account as quickly as possible.

This leads you to trading too much with too large orders compared to your balance, etc. It makes you lose money as quickly as possible or even burn out your account with just the first few orders, instead of increasing it. This type of trading offers a lot of drama, attractiveness, and stress. And I won’t be surprised when it costs you money.

I recommend this: “I am currently a fund manager with several million dollars in cash.” Just think that you have the right to manage millions of dollars in your account, that you are trusted by many investors who give you money, then you will surely trade more carefully. You always have to calculate the risk level for each order compared to the amount of capital in the account. This is also very boring.

Or think about relativity, the money you consider small (a few hundred dollars) is the dream salary of most people (actually). Yet you’re risking it with just one click. Think of a person who faces the sun to sell vegetables all day expecting to earn a few dozen dollars. Is it too good when you can sit leisurely by the computer and earn a few hundred dollars a month? It is equal to the salary of others working all month.

The principle of successful trading is the same. If you manage and trade well with a $2,000 account within 1 year, you can do the same thing with a $2,000,000 account. And what is the reality? $2000, $3000, or $4000 accounts often get burned out within a few months. Because they trade with so much excitement and hope. They try to make as much money as quickly as possible.

The excitement in trading often results in being more confident and bigger transactions (compared to a reasonable level for your balance). So if you are managing capital/risk well, not trading too much, you should feel bored when you see the market every day. The longer this feeling lasts, the more you shorten the path to success in trading. And then, the feeling of happiness will be much higher, deeper than that feeling of excitement.

To conclude

I would like to tell the story of two groups of traders. The first group includes newbies and novices. They have two choices: buying or selling. And this question always revolves in their heads. Selling or buying, buying or selling, or selling right after buying, what to do?

The other group includes professional traders. They also have two options: trading or doing nothing. The first day, they open the computer but see no chance. They shut it down and do another thing. So is the second day. And so on until they find the right opportunity to risk the money in the account. They quickly open the order and also turn off the computer.

Everything is boring, isn’t it?

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