One of the biggest mistakes that aspiring Forex currency traders make over and over again, which keeps them from reaching their full potential in the market, is interfering with their trades after they enter them.
Any trader who has been trading for a long enough period of time is guilty of becoming over-involved with their trades and with trading general. I’m included. However, eventually after enough trial and error I figured out that interfering with my trades once they are live and over-analyzing them is almost always the wrong thing to do. I’ve boiled down how I stopped interfering with my trades into three primary points which I will share with you below.
• Master an Effective Trading Strategy Like Price Action
You need to master a high-probability trading strategy that is also simple, for me the most logical strategy was price action trading. I learned to master price action trading to the point where I knew what I was looking for in the market without a doubt. After you truly master an effective trading strategy like price action, it means you know almost instantly whether or not your edge is present. This is the first step to becoming a successful price action trader, and if you actually do this, it will mean that meddling with your trades after they are live is not a good idea because you have identified your edge and traded it with a preemptive plan when you were the MOST objective and clear-thinking. Messing around with it anymore is only going to lower your over-all probability of success.
• Don’t let Emotion Control Your Forex Trading Decisions
Messing with trades once they are live is almost always an emotional reaction to the markets. Emotion is the enemy of successful Forex trading. Your trades should be pre-planned, as well as your trade management. The only time you should interfere with your trade is if you have pre-planned to do so, meaning you have a pre-planned trailing stop routine or other exit strategy. But, most of the time traders interfere with their trades it is an emotional activity that leads to inconsistency and reinforcement of bad trading habits. Read here about how price action can help cure emotional trading problems.
• Set and Forget
By using “set and forget” trading techniques traders can learn to “let go” of their trades once they are live. This strategy removes all temptation to interfere with live trades by accepting before-hand that you are the most logical and objective BEFORE you trade, not during or even after it. So, the advantage that the set and forget forex trading strategy gives to traders is that they can go about their normal lives and let the market do the work. This is of course assuming that they have mastered an effective trading strategy like price action. Once you have truly mastered your trading strategy you can learn to enter the market at high probability times and walk away from your computer until your next pre-scheduled trading time. This is the most stress free and effective way to trade Forex with price action.
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Good trading as always – Nial Fuller
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