Stop Changing Your Forex Strategy
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Many traders get trapped into the cycle of changing their Forex strategy every day or week. What they don't realize is that it's not just about the indicators and system - it's about you as a trader and your ability to trade.
When we make mistakes it's natural to make course corrections. As traders though, even if we do everything correct we still have bad trades and losses, it's just the nature of the game. Why not view it as a sports game, sometimes we get a goal (winning trade) and sometimes we give up a goal (losing trade)?
It is healthy to make some course corrections but if you are the type that keeps changing every week, a good challenge for you is to keep the exact same strategy for 1 month. Even if you start to hate certain indicators, stick with it and then after 1 month you can change them. This exercise will make you a much better trader and get you out of the habit of over-optimization.
You may also start to think deeper about what your strategy is really about. If it's just some indicators changing color or a moving average cross with a twist, you may want to re-evaluate. It's important to be very honest with yourself. Every big move is a result of a moving average cross, but not every moving average cross leads to a big move. We are wired to recognize patterns and sometimes we see what we want to see.
Looking back at the charts it's easy to see the patterns, however in real-time it's not so easy. After trading your strategy for a month to the best of your ability you will really get to see whether it has potential or not. Especially if you are trading 1 hour or smaller timeframes, there is a lot that will happen in the month. You will experience trends, ranges, choppiness, etc. |
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Author Resource:-
You can successfully learn how to trade forex in a live forex trading room with expert traders.
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By :
Alex Harper
Submitted
2011-06-24 15:55:57 |
Article From Article Mayhem
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