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
EUR/USD eases to near 1.0700 ahead of German inflation data
EUR/USD is paring gains to near 1.0700 in the European session on Monday. The pair stays supported by a softer US Dollar, courtesy of the USD/JPY sell-off and a risk-friendly market environment. Germany's inflation data is next in focus.
USD/JPY recovers after testing 154.50 on likely Japanese intervention
USD/JPY is recovering ground after sliding to 154.50 on what seemed like a Japanese FX intervention. The Yen tumbled in early trades amid news that Japan's PM lost 3 key seats in the by-election. Focus shifts to the US employment data and the Fed decision later this week.
Gold price bulls move to the sidelines as focus shifts to the crucial FOMC policy meeting
Gold price struggles to capitalize on its modest gains registered over the past two trading days and edges lower on the first day of a new week, albeit the downside remains cushioned.
Ripple CTO shares take on ETHgate controversy, XRP holders await SEC opposition brief filing
Ripple loses all gains from the past seven days, trading at $0.50 early on Monday. XRP holders have their eyes peeled for the Securities and Exchange Commission filing of opposition brief to Ripple’s motion to strike expert testimony.
Week ahead: FOMC and jobs data in sight
May kicks off with the Federal Open Market Committee meeting and will be one to watch, scheduled to make the airwaves on Wednesday. It’s pretty much a sealed deal for a no-change decision at this week’s meeting.
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