You have to like it and enjoy by the process itself.
Although your performance will be measured by profit as in any other business.
Still, if you will not like the process, you will never succeed. Without the
first you will never reach second.
Here with our Forex Military School we’ve given you some
nice tools and many advanced comments that hardly could be found for free
somewhere else. But these are just tools and their application and
effectiveness will depend on you. Every third person in the world is playing on
guitar, but not every third is J. Hendrix. Many people play football, soccer to
you Americans, but only a few can compare to those like D. Maradona, Pele and
L. Messi.
Applying these thoughts to trading, you have to understand
that it is not some indicator, not a black box trading system and not the
advise of your neighbor-trader that hit your account. YOU do it! That is your
skills, discipline, diligence, your trading system, ability to analyze the
market, execute your trading plan and risk management rules that make this
work.
Another important thing is your determination to study,
apply what you’ve learned and track performance of this application. In the
beginning you primary target is to be focused on the trading process, learning
process and survival – not the profit.
Making an everyday analogy – would you go into guitar
players’ competition by learning only “happy birthday to you” song on single
string? I strongly doubt it. Probably you will pass through technique, scales
arpeggios, etudes and other education stuff before turning to play “Flight of
the Bumblebee” on 250 tempo. Here is the same – learn to understand markets,
improve your trading technique, find a proper trading system, good risk
management and learn to combine all of these issues on Demo first.
You major success here will be the trading system that gives
you acceptable win/lose ratio, i.e. when your winning trades will be outperform
losing ones.
There is no Holy Grail
I strongly recommend you to read Jack Schwager book “Market
Wizards” and “New Market Wizards” sometime. Although each famous trader has its
own way with markets and spin about his or her journey differently from each
other – all of them have something common that become hallmarks of market
success:
- There is no way to predict the future. Nobody can do this.
That why we’ve discussed an emergency plan and that it has to exist. All that
you can do is to be prepared for a possible crash of markets;
- Nobody can predict markets with certainty 100% of the
time. Probably you often notice that market after some awaited press release,
news or some data acts differently than expected – in contradiction with
logical behavior. And you can’t find an explanation to that. Maybe some big
hedge fund was locked in the wrong position, maybe banks have expected
different numbers, maybe the market already has included this data in prices
and so on. There are million of reasons could be for a not logical price move.
The point is simple. If trading was as simple as interpretation of data – was
it positive or negative, than all traders would be billionaires already. There
is always uncertainty that exists, and you never know where it could come from.
There are millions of traders in the world and every one of them has his or her
own orders, positions, view and treating of particular news or data. What is
the conclusion? You will be many times on the wrong side of the market. This is
normal for such a kind of business as trading. But…
- Probability is what is really important. This leads us to
follow the conclusion that trading is a probability business. You maybe on
wrong side, but probability should be always on your side. If this is not the
case then your business is in the bad way. If you’re brinksman – it will be
hard for you to deal with trading.
Take a note that we’ve discussed all these issues in the
School in much detail.
It will not superfluous to remind you about patience and
discipline
Patience is one of the cornerstones of trading. You need
time and patience to develop a trading system, to check it, to get experience,
to enter and exit from trades and so on.
Discipline is another keystone. In fact it means that
sometimes you have to do some things that you do not want to do, or are lazy to
do it. Follow to keep trading journal, follow to preparation procedure for
every trade and daily routine, and follow to trading plan – just to name some
of them. But for newbie traders very often it happens so, that a corner stone turns
to stone of stumbling.
You will see that to pass through some education course,
book or e-school is much simpler, but applying them strictly with patience and
discipline – that is a really tough task to do. That’s why not every person who
has read the book becomes successful trader.
Lack of discipline, patience and diligence leads to major
destruction forces as impulse, gambling and gut-feeling trades, early profit
taking, drag out loss taking and revenge sentiments. They do not encourage of
survival of newbie traders.
Here we have to recall the first statement about the
journey. It will help you to stay on the way with discipline and patience.
Trading is not “become rich tomorrow and give it up” – this is a gradual
process. If you will move step by step diligently after some time you will see
the progress and this will get you inspiration and encourage you to further
success.
Also keep in mind that the market will always be here
tomorrow – don’t forget about getting enough rest. Second, that is more
important – do not hasten to trade any possibility that you can. Keep only with
your best ideas. If you do not have the necessary setup today – wait for
tomorrow. The market is forming excellent setups and opportunities almost every
day, so why we have to take worst of them?
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