Trading can be all consuming, if you allow it to be. It’s true that it takes time and commitment to get to a point with any new skill where you feel comfortable. Undoubtedly striving for perfection, for continual improvement, is an admirable quality, but successful trading does not require immersing oneself in a furnace of frenzied activity on a daily basis. The whole point about trading in the style of the ‘Lazy Trader’ is that trading is a means of supporting a life beyond trading, not for trading to become your life.
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!
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: US Dollar to remain pressured until uncertainty fog dissipates
Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.
GBP/USD softens to near 1.3600 as BoE hints further rate cuts
The GBP/USD pair loses ground to near 1.3610 during the early Asian session on Monday. The Pound Sterling softens against the Greenback amid growing expectations of the Bank of England’s interest-rate cut. Traders will take more cues from the Fedspeak later on Monday.
USD/JPY drops back below 157.00 on Japan's verbal intervention
USD/JPY has come under moderate selling pressure below 157.00 in the Asian session on Monday. The Japanese Yen lost ground to near 157.70 following Japan’s ruling Liberal Democratic Party's outright majority win in Sunday’s lower house election, opening the door to more fiscal stimulus by Prime Minister Sanae Takaichi. However, JPY buyers jumped back and dragged the pair southward on FX verbal intervention by Japan’s Finance Minister Katayama.
Editors’ Picks
USD/JPY drops back below 157.00 on Japan's verbal intervention
USD/JPY has come under moderate selling pressure below 157.00 in the Asian session on Monday. The Japanese Yen lost ground to near 157.70 following Japan’s ruling Liberal Democratic Party's outright majority win in Sunday’s lower house election, opening the door to more fiscal stimulus by Prime Minister Sanae Takaichi. However, JPY buyers jumped back and dragged the pair southward on FX verbal intervention by Japan’s Finance Minister Katayama.
Gold eyes acceptance above $5,000, kicking off a big week
Gold is consolidating the latest uptick at around the $5,000 mark, with buyers gathering pace for a sustained uptrend as a critical week kicks off. All eyes remain on the delayed Nonfarm Payrolls and Consumer Price Index data from the United States due on Wednesday and Friday, respectively.
AUD/USD: Buyers eyes 0.7050 amid upbeat mood
AUD/USD builds on Friday's goodish rebound from sub-0.6900 levels and kicks off the new week on a positive note, with bulls awaiting a sustained move and acceptance above mid-0.7000s before placing fresh bets. The widening RBA-Fed divergence, along with the upbeat market mood, acts as a tailwind for the risk-sensitive Aussie amid some follow-through US Dollar selling for the second straight day.
Top Crypto Gainers: Aster, Decred, and Kaspa rise as selling pressure wanes
Altcoins such as Aster, Decred, and Kaspa are leading the broader cryptocurrency market recovery over the last 24 hours, as Bitcoin holds above $70,000 on Monday, up from the $60,000 dip on Thursday.
Weekly column: Saturn-Neptune and the end of the Dollar’s 15-year bull cycle
Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.
RECOMMENDED LESSONS
Making money in forex is easy if you know how the bankers trade!
I’m often mystified in my educational forex articles why so many traders struggle to make consistent money out of forex trading. The answer has more to do with what they don’t know than what they do know. After working in investment banks for 20 years many of which were as a Chief trader its second knowledge how to extract cash out of the market.
5 Forex News Events You Need To Know
In the fast moving world of currency markets where huge moves can seemingly come from nowhere, it is extremely important for new traders to learn about the various economic indicators and forex news events and releases that shape the markets. Indeed, quickly getting a handle on which data to look out for, what it means, and how to trade it can see new traders quickly become far more profitable and sets up the road to long term success.
Top 10 Chart Patterns Every Trader Should Know
Chart patterns are one of the most effective trading tools for a trader. They are pure price-action, and form on the basis of underlying buying and selling pressure. Chart patterns have a proven track-record, and traders use them to identify continuation or reversal signals, to open positions and identify price targets.
7 Ways to Avoid Forex Scams
The forex industry is recently seeing more and more scams. Here are 7 ways to avoid losing your money in such scams: Forex scams are becoming frequent. Michael Greenberg reports on luxurious expenses, including a submarine bought from the money taken from forex traders. Here’s another report of a forex fraud. So, how can we avoid falling in such forex scams?
What Are the 10 Fatal Mistakes Traders Make
Trading is exciting. Trading is hard. Trading is extremely hard. Some say that it takes more than 10,000 hours to master. Others believe that trading is the way to quick riches. They might be both wrong. What is important to know that no matter how experienced you are, mistakes will be part of the trading process.
The challenge: Timing the market and trader psychology
Successful trading often comes down to timing – entering and exiting trades at the right moments. Yet timing the market is notoriously difficult, largely because human psychology can derail even the best plans. Two powerful emotions in particular – fear and greed – tend to drive trading decisions off course.