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.

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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?
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
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.

The job of a Forex trader should include boredom
The job of a Forex trader should include boredom

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.

You need to trade as “if”
You need to trade as “if”

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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