It is true that trading successfully is not easy and that to get to a point where it becomes regularly profitable will take time and commitment. Exposure to the market and trading with diligence will automatically build the skill set required to get to that point, but it doesn’t, in fact shouldn’t, involve a whole lot of blood, sweat and tears. Never become fixated, or obsessed, by trading. It must not dominate you. It is simply a tool towards achieving financial growth, and like any new skill set, mistakes are made along the path to mastering it.
An important part of trading successfully in a stress free manner is to simplify it. It is very easy to overcomplicate things; there are almost an infinite variety of strategies and markets. Don’t feel you have to try and target everything. It simply isn’t possible. By far the most effective approach is to be very focused on just a few markets and one time frame, that which fits with your lifestyle and other commitments. Within a focused area of the markets and employing a single time frame there can be many opportunities. You don’t have to be, in fact should never be, trying to trade everything.
Your trade journal will tell you which markets and strategies have been most fruitful; pare down your operation to concentrate on those. Always remember that knowing when not to trade is as important as knowing when to trade. If you have a lot going on and you’re trying to target a lot of markets and currency pairs then you’re working too hard and making life difficult for yourself, which is likely to be reflected in the results. It’s a question of targeting and then working to your strengths. It will not only be more profitable but also more fun.
In fact simplifying your trading should be a goal. Try to achieve a point where market analysis, risk management, execution and money management become second nature, and then you will have the freedom and time to concentrate on your trading goals, i.e., the ‘deeper’ reason(s) you took up trading in the first place, not simply that you just wanted to try and make more money.
Keeping your trading pared down, simple, but effective, is the most efficient way of getting the most from it. Remember that less is more in trading. One way of achieving this is to use the End of Day time frame as part of your strategy where opportunities are clearly defined and minimum time is required from the trader. It’s ideal for those with busy lives and other commitments and for whom trading is a means of supplementing income rather than a way of life.
You will often find that the pros have a very simplified approach to their trading, one that they’ve honed to perfection!
Editors’ Picks
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
Google starts indexing Bitcoin addresses
Bitcoin address data is live on Google search results after users realized on Thursday that the tech giant started indexing Bitcoin blockchain data. However, mixed reactions have followed the tech giant's reversed stance on the cryptocurrency.
A Hollywood ending for fourth quarter GDP
The latest revisions put Q4 GDP at 3.4%, the second fastest quarterly growth rate in two years. Much of the upside was attributable to stronger consumer spending, yet fresh profits data affirmed it was a good quarter for the bottom line as well with profits up by the most since the Q2-2022.
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