There is an ancient Oriental saying that says “Good things take time” and seriously productive investments do too. As a foreign currency trader I have discovered that the more patient you are the more capital you make from your trading.
Forex strategy trading is all about making smart choices at the perfect time. In this article I would like you discuss how you can develop the necessary amount of patience for prosperous foreign exchange trading.
It is not about amount but the grade of your trades: It is impressive how a multitude of folks out there believe that by taking more trades they will generate more profit. I have actually found the complete opposite to be true. A lot of individuals will differ in opinion with me on this but that’s ok.
I solidly think that the more trades you take the more times you expose your account to risk and the more room you have to make slips. In average I take about only 5-10 trades per month and I pay attention to on higher time frames.
What is the reason? Because the big money is in the higher time frames. All the hedge fund managers, money managers, and institutional traders are looking at them. Because of this more money can be generated in a daily or 4 hour chart than a 5 minute chart.
I think it is really intriguing how many of my fellow traders who trade lower time frames make less profits or the same revenues I make but with about 2 times more work from their part. Efficient fx trading can only be obtained through working smarter not harder.
Concentrate on the process not on the profits: I have always stated that if you focus on how much revenue you are going to create you will not concentrate on trading profitably and making smart decisions.
The other day I was reading one of my most treasured books called “Market Wizards” by Jack Schwager. One of the traders he interviewed for the writing of his book commented one thing that had a really strong effect on the way I see forex currency trading.
The name of this trader is Paul Tudor Jones. He is a legendary futures trader and he once said “everything gets destroyed a hundred times faster than it is built up. It takes one day to tear down something that might have taken 10 years to build”
This is unquestionably true for foreign currency exchange trading. If you don’t know what you are doing and your risk management is off you might just blow up your trading funds (that maybe took you years to save) in a matter of hours. This is why every single trader has to focus on the process rather than focusing on the profits. Remember that playing a solid defense will be more productive than playing a firm offense.
A profitable trading strategy plus patience and discipline is all you need to be successful: Most Forex traders have a hard time focusing on one strategy and due to that, they lose more money than they produce.
A lot of my friends and trading partners come to visit me to my office for the reason that they want to see how I trade and most of them are completely puzzled after a couple of days. They hope to see me trading all day long, working hard at it, and always looking at my computers.
Instead of that they are staggered when they know that I only place about 1-3 trades per week and manage them as the days go by. Then the rest of my week, I am working out, going out to places, spending quality time with my family, or on vacation.
The reason why I am able to do these things is because I have centered all of my energy on becoming more effective and trading smarter, not harder.
You can do this as well by focusing on higher time frames, taking fewer trades, and focusing on the process instead of the profits. Stay tuned as we will publishing more Forex strategy trading helpful hints very soon.
To your trading success,
Professional foreign currency Trader & coach
Jay Molina is an advanced Forex trader that helps other investors around the world to learn about the Forex market and its rewards and risks.
For more forex strategy trading tips, visit the link: http://www.myfxinvestment.com