After a long time again a bit of practical theory. Early entries and early exits from shops have kept me busy for a while now. We have been addressing this topic at Forestraders for a while now as a challenge, and another step to improve FTs way of trading. Having been quite successful \/not perfect\/ in determining a longer and medium term direction, I have been focusing on this fine tuning for the last few months, in addition to the trading itself.
\nThe solution \/not perfect\/ has shown itself in self education. As I processed the theory and history of forex, I came across more aha moments that moved the solution to this problem along significantly. <\/p>\n
There are a number of factors that can contribute to such a trader’s decision.
\nDistrust in one’s own system, trading mindset, too much masturbation over various factors \/news, reading forums, internet\/, constant fear of loss, early exit when the trend breaks \/correction\/.<\/p>\n
The most common reasons based on experience could be identified as follows:
\n– we simply don’t know what we are doing. We trade with real money before we know ourselves and at the same time have a system in place that best suits our nature. Most of the time we make the actual trading very complicated and sit back, looking at the open position as if we are pushing it in our direction with our eyes as well. Unless we also learn to really implement the known fact of entering a trade and forgetting about it, we will continue to get out of trades early. Of course, we can’t predict ahead of time which trade will go in our favor in the long run, but if we let the market work for us, we’ll be closer to success. Catching and especially sticking \/with\/ long-term trends gives us the chance to get rich without stress.
\nAnd this is what we have approached in FTs by fine-tuning the theory of trend phases, and more importantly, by gradually applying it to real trading. This has allowed us to fine tune the aerial view on longer TFs and so you only need to adjust your MMs \/each individually\/ to tolerate moves against your open trades without stress. If you add to that the judicious selection of different currency combinations \/portfolio\/, then it is literally a guarantee of long term sustainable trading without stress.
\nAll this simply applied to the selection of currency pairs based on comparing and combining indices. That top view we do at the beginning of the year based on annual MPPs is our long term map. It has been working since the beginning of FTs academy, it is just hard to believe it and especially to follow it all year. <\/p>\n
– we are too impressionable, we don’t trust ourselves and we succumb to different information. Today it’s very easy to be influenced by FB, internet forums and believe in beautiful successful deals. Most of you already know very well that it’s a one-off taken out of context and no one knows exactly what the real business account of the author looks like. Even so, we already have the worm in our head and are following the “new successful guide”. Suddenly, everything gets complicated and once again it erodes our confidence in ourselves, and we’d rather get out of the business. A few days later, we find that our store is right where we planned to close it. The lesson here is: plan your trades in peace \/weekend TOP.\/ and then just enter and forget.<\/p>\n
– Another reason could be the trading psychology \/thinking\/; our expectations when entering forex markets are usually very unrealistically high at the beginning, and we want to get rich immediately. The truth is that only about 10% of traders survive and stay trading, and even make a living trading in FX markets, in the long run. If you want to be one of them, you have to do \/even behave\/ the exact opposite of what the other 90% do. – Confidence in your own system \/way of trading\/ vs. life experience before entering the market. Whether you like it or not, your mindset about money, trading, wealth also has a big impact on your success in trading itself. If you are skeptical and negative, and don’t believe that you can actually make a living trading, and even get rich, then this also affects your early exits from trades. Maybe you are not even aware of it, and it is your subconscious mind that is influencing your trading decisions. That’s why we always say at FTs that it’s not enough to study just the markets, but more importantly study yourself. Always start looking for fault from yourself if your trade fails. Over time, you may \/definitely\/ find various errors in your thinking as a trader. When you choose a teacher, choose him\/her by results and actions, not by talk and marketing. <\/p>\n So how do we prevent premature exits from stores? By continually self-educating and fine-tuning FTs trading style \/even if it’s only minor cosmetic adjustments\/ we are increasingly making FTs trading more stress-free. There is no other option than success!<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" After a long time again a bit of practical theory. Early entries and early exits from shops have kept me busy for a while now. We have been addressing this topic at Forestraders for a while now as a challenge, and another step to improve FTs way of trading. Having been quite successful \/not perfect\/ […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[55],"tags":[],"class_list":["post-7585","post","type-post","status-publish","format-standard","hentry","category-blog-en"],"yoast_head":"\n
\nBehaviour is the result of thinking.<\/strong> Your mindset influences your habits, and your habits are essentially what will make you succeed or break you in the marketplace. So it all starts with having and maintaining the right trading mindset. You should take for granted that only slow and steady can win this race, and that a low frequency approach is the way to make money “fast”. The faster you try to make money, the more you lose. Our famous LESS IS MORE. Business success is the result of focusing on business performance; consistently doing all the little things right every day, so that you don’t have any huge swings in your own curve. Consistently, without stress. <\/p>\n
\nOf course, writing it here is easy, but the actual observance already requires strict self-discipline. Have a clear business plan and strictly follow it. From years of experience, I have found that preparing a TOP\/Weekly Business Plan\/ calmly is clearly the best thing we can do for success. Have clearly written which trades \/ currency pairs\/ we are going to trade, which direction and where we are going to get in, where we are going to get out, and possibly where we are going to buy.
\nStrictly adhere to this plan all week without any further masturbation. We should learn to definitely forget about everything else. Experience shows that we really don’t need all that other stuff. Any movement in the market is dealt with by our MM and portfolio. The cardinal sin of our trading is watching the screen \/graphs\/ too often, especially at lower TF and here we cannot filter out \/manage\/ our emotions. If you are not busy then find a hobby \/cooking, healthy eating, sports, self development\/ and forget about charts.
\nUsing SL is for those who don’t know what they are doing and don’t believe in their trading plan. That last sentence is really very strong and bold, and a lot of non-FTs-ers can take it out of context and use it against me, but that’s their problem. You can certainly use sliding SL, or BE, but it’s all up to the individual. <\/p>\n
\nWe all know we can’t control or dominate the market, but many traders are desperately trying to do so all the time. We should trade what the market offers and not try to trade what we expect.
\nEverything that goes up must also go down at some point, and vice versa. Just adapt MM to this idea of ours and you can’t lose this game. <\/p>\n