NiaTradingSignals

It has become plainly clear after a long time forex trading that trading is more of a mental challenge than simple trading systems.I have endeavored to only look for forex trading systems that are easy for me to understand. I realized that I needed to keep my mind in shape and wasn’t going for a phd in forex trading but just wanted to make a living trading forex.

For those who wish to sharpen their minds these are some of the ideas I picked up

1. Understand your Trading System

It is not enough to say that I bought a mechanical system that gives me buy or sell signals. You need to know why that trading methodology was chosen. It doesn’t mean that you understand the mathematics but at least be able to explain to your 10 yr old daughter that " I wish to buy gbpusd when the 10/20 cross over long and rsi 45 is up". If you cannot explain your trading system to your grandmother, then you don’t know what you are trading.

2. Find a Mentor

Forex trading is a very lonely business. It’s just you ,the computer and all your fears. It might seem like fun in the beginning but after about 2 months of trading on your own, you start developing bad habits. Find yourself a mentor.

I don’t mean one of the high priced forex mentors online,though they aren’t all bad. The mentor must be someone who understands the trading system that you wish to trade. Don’t have an expert in pivots mentoring you in moving averages .Two blind mice can only smell each other. If you can’t find one, create one. Join any or all of the forex forums and invite other users to try and also work on your system.

3.Break down your Trading System

Break down your trading system to it’s smallest components. If it has 4 indicators then learn what each indicator does and how its applied. You will be surprised how soon you will be able to know when to make proper trading choices.By knowing the components of your system you will then be able to identify problem areas in your trading.

4. Put yourself in a Position to Succeed Trading

a) Healthy Sleep and nutrition habits – It is foolhardy to trade in the European market session on a bottle of coca cola if you are in the USA. Try water and try to sleep early. Waking up at 2am in the morning ain’t funny.

b)Relaxation and visualization exercises. Mentally rehearse making winning trades and following your trading methodology.You want to convince your mind that you are already a winning trader everyday.

c)Positive self talk. What is wrong with encouraging yourself to make even better trades? Re frame your negative emotions to positive. For example instead of dwelling on a losing trade, tell yourself that a losing trade statistically brings you to a winning trade.

5. Keep a Trading Journal

It is important for you to know where you are now versus where you were before. A forex trading journal is critical especially for new traders. Record your progress however small in the journal. You will find that you are actually improving as a trader especially if you write your trades.

Happy trading everyone and lets meet at the forex forum

The Dollar vs Oil