Forex Tips And Techniques

There is a common misconception that select gifted souls are born to trade. In my experience , after working alongside scores of traders, I have yet to meet a trader who could naturally trade without any trading education and experience . I will readily admit that some traders are better equipped than others to assimilate the rudimentary methods of trading , and I would also add that a few traders have a hard time picking up on even the most basic concepts of trading. After all, we are all gifted with different sets of skills , and we are not all set up to be futures traders.

This contrasts markedly with some different occupations . For example, I have a friend who is a natural born golfer. For as long as I have known him he could hit a golf ball long and straight . He can shoot even par in any  weather conditions. He can even manage par when he is stone cold drunk , which in itself is a miracle. For unknown reasons , this relationship does not hold true in futures trading . Perhaps it is because of the natural illogic of trading methodologies , or perhaps trading does not necessarily lend itself to natural ability. I don’t have the answer to this question .

I am an hopeless optimist, and have found that most individuals who are willing to put a large amount of book work, a lot of practice, and dogged determination can can acquire the skills to trade very profitably . I must add one caveat, however: I have met a small number of people, a very small percentage, who simply were unsuited to trade, and it became noticeable very early in their training that trading just didn’t suit them . Again, this is a very small percentage .

It is my belief that successful traders are trained, seasoned and combine years of experience before they become truly leading floor traders. Unfortunately, trading on Wall Street is a very nerve racking field of endeavor and most traders exit the trading game before they realize their potential. Most leading investment bank trading rooms are filled with young traders, with a experienced veteran supervising operations of the trading room. I am 52 years old, and my limit for trading is about five hours. My mind tires and my concentration starts to wander , but the trades I execute are normally well thought out and years of experience keep me out of the lousy trades and help me to recognize the good trades.

And that is the rub. As a novice trader you are going to execute some bad trades, it’s inevitable and it is okay, if you learn from your miscues . On a given day, there are a variety set-ups that look good , but there may be one factor that exclludes that trade from being successful . Your ability to discern that single negative factor is what will make you a good trader.

I want to make one extremely important point, though. You don’t have to be a great day trader to make money in the market. If you have learned a good system, have the proper self-discipline, and can execute your system with a high degree of accuracy…you can be very profitable in your trading business . You don’t have to be great , just good. On the other hand, if you stay with trading for an extended time period you have the potential to be great. The downside to this situation is humorous, though. You will be the only person who knows you are great. Unless you are trading for a large investment bank, you will have to be content with knowing you are a great trader and leave it at that. But who really cares? As long as your futures trading account reflects the profitable results you are enjoying, isn’t that enough?

In summary, learn your system inside and out. In my trading, I also learn a number of different systems inside out. Practice the self-discipline required to make your trading profitable . Avoid entering trades based on emotion. Further, always strive to improve your trading, keep a journal of your trades, and review the trades that did not work out so you don’t repeat them. And most importantly, be persistent and dogged in your approach to trading, strive for perfection, even though perfection is nearly impossible. We all have the potential to be great a day trader, but most don’t reach deep enough to realize their potential. Be one of the few that reaches his potential.

I am still a full time e-mini day trader and educator and enjoy the profession as much as ever.

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