Traders spend endless hours analyzing various technical indicators. They continually go through enormous amount of financial data. Why is it all for? They all want to find the “correct” trade. In their mind a trade is correct when it delivers a profit. Conversely, when they lose, they feel like incompetent losers. Their main idea is that the more work you put into analyzing the market, the more profits you’ll gain. Is there an easier path? What does it really take to make consistent profits in the FOREX market? Why is it that so few people realize the potential this market holds for them? Read on. You’ll soon find the answers.
If you spend many hours in front of the screen, not making much in return, please stay with me. I know the solution to your problem. You can make your market analysis really easy and straightforward. Here is how you go about it in two simple steps:
1. Ask yourself this question: “In what timeframe do I analyze this market?”
Tough question, ha? Come on, be honest with yourself. I can’t really hear your answer. Regardless, I’ll make a wild guess. You probably analyze your market in a number of different timeframes. Perhaps even all of them! You choose the one in which you find a trading opportunity in the moment. Next you gather evidence to convince yourself that this trade absolutely will be a winner. This time you made your analysis really extensive. It won’t be as always. You can’t lose on this one. Well, trading this way, you set yourself up for a huge disappointment.
Instead, pick a single timeframe and analyze the market only from that perspective. Stop messing around and clouding the whole market picture. If you focus on one market dimension, you’ll greatly simplify your analysis. Find trading setups within the timeframe you’ve chosen. This way you’ll make the first step toward making consistent profits in FOREX. Now is the time to take the second step.
2. Ask yourself another question: “What exact criteria do I use to enter the market?”
So, what are they? How do you know that now is the moment to buy or sell? What set of indicators or chart patterns do you use? Are there really any? I can only tell you what most traders do. They literally rush into trading. They make trades simply to be in the market. If they don’t have a position open, they feel less of a trader. How in the world do they dream to make money trading? Even if they’re lucky and win once or twice, the market sooner or later, takes all their money away. Don’t let this happen to you.
It is essential that you specify EXACTLY what you want to trade. This may very well be a technical chart pattern or a confluence of some economic events. It doesn’t really matter what approach to trading FOREX do you use. Choose your edge consciously. Know the probability of success and the expected return from your trading method. With those in hand, you have now tripled your chances for success in FOREX. If you discipline yourself to trade only a specified chart pattern, all your previous market analyses may very well go into trash. Now you know what you want to take advantage of in FOREX. With patience, you’ll achieve your financial goals without much physical effort.
It’s all in your hands
You are the one, who is responsible for making trading decisions. You choose all your tools. Choose them wisely and you’ll succeed. The choice of a single timeframe should focus your attention on the patterns that exist within that timeframe. In this way, you’ll develop a more efficient market sense. With time, you should be able to make more intuitive trades. For now, focus on a single trading idea. Pick a pattern that you understand and can easily spot on your chart. Trade it exactly as planned. Don’t second-guess yourself. If your edge is present, act on it without reservation. If you practice those two solid principles of trading, your FOREX success is virtually guaranteed.
Thanks for reading.