Forex junkie

The psychological integrity of a professional trader is inextricably linked to the trading strategy, money management method and trade placement frequency. Wondering how you will measure up? Time to read on…. Forex junkies tend to buy and sell on impulse or hearsay, a practised professional will always be junkie with a structured plan that looks a lot like a business plan. They may not have a mission statement but there are pre-defined rules in their plan that gives the trader the foundation needed to trade with consistency.

The junkie will often believe their money is working for them, but 10 hours in, one hundred open positions later, few will be able to show more for their time other than a long history list of mostly stop outs in their trading history. Even if the professional trader is taking more losses than wins, the account will still experience growth.

The importance of time management is crucial junkie successful Forex trading. While junkie traders get getting high staring at the charts for hours on end, while continuously scraping the bottom of forex barrel for profits, the fact of the matter is that they would probably be able earn more in a normal day job.

The Forex market is no different. Every time you open a trade you are increasing your risk exposure, so a trader who enters into several trades over the course of junkie single day is actually exposing themselves to high levels of risk and stress more than a trader forex opens only a few positions over the course of a trading week. We manage our time effectively by using the daily timeframe to effectively anticipate where price is going to move over the course of the next few days.

By using higher timeframes, like the Daily or 4 hour chart to forecast the next few days worth of price movement using price action alone, we can identify a nice low risk trade setup which have a high chance of maturing into profit over the span of a couple of days.

This way, we do the minimal amount of work, spend less junkie in front of the charts but take larger profits chunks from the market. On the flip side, trading junkies will focus on the smaller vibrations of intraday price movement and make several errors by chasing price buying at the top of moves and selling at the bottom.

Anything less than a 4 hour chart is rarely going to help a trader in finding low risk opportunities which can double or even triple a return on their initial investment over the long run. The mantra of less work yielding more results is therefore not only the smart way to capitalise on market movements with greater certainty but it also acts as a strong line of protection against forex movements and unexpected swings which so often wipe out the capital of a junkie who may have invested hours junkie and closing countless trades.

As with any source of income, or job, the way you fit your Forex trading into your life will say a lot about where on the spectrum of professional vs. Both professional and junkie trading habits exist in all levels of trading. There is no formula that says that if you spend most of your time trading the markets that you are a professional, any more than spending less than an hour or two per week will make you an amateur.

Forex Junkies cannot maintain control of trading because they are wholly enslaved to price movement. Each new candle that appears causes stress and anxiety. Every pending news release or financial data release has them sitting on the edge of their seat as they are hypnotised by the rising and falling price figures in front of them.

This allows the trader to be involved with the markets in a professional full-time manner forex allowing them to keep their day job if they so wish to. Through careful planning in money management and observing price action movement, the professional will use their trading strategy to prevent their trading activities taking over their normal lives by knowing exactly when and how they are going execute trades. The professional trader can be out enjoying life with friends and family, not even having to be at their desk or computer screen while the market movements are making them money.

Most of you will perhaps share certain elements of both these extremes. Having said that, if you are reading this and are completely empathising and identifying with the junkie, then it is time to take a serious look at your trading habits. Maybe you want to take a modest profit level and move it up to the next bracket. Maybe you are happy with the money you are making but want to achieve that same level without spending so junkie time in front of the computer.

In any case, I would encourage you to take a long look at two key components. First of all, how much money have you actually made over your trading career? Secondly, junkie does the amount of time you spend trading compare to the amount of time you would choose to spend if you could? A high percentage of traders fail because they make this one mistake and fall into the bad habits of obsessive compulsive decisions and are continuously chasing the get rich quick fantasy.

If you are serious about your trading and truly want to achieve financial freedom through sustained, profitable trading, you need to start treating your activity as you would any job in business. We are strong believers in price action trading, this is art of looking at individual candlesticks to determine the probable future direction of a currency pair, commodity or stock. You can remove all the unnecessary variables from your chart and work forex the raw price movements.

Using price action trading strategies is a sure fire way to simplify your trading. Simple works forex in the markets. Junkies tend to have over complicated systems with chart templates that look like the cockpit of a space shuttle.

Price action works extremely well on the higher time frames. Making the switch to price action is a good way to start your rehabilitation process, clean up your charts, and become a master chart reader.

If there truly is any Holy Grail system out there, I am confident it would be based on price action trading. Are you a Forex trader, or just another Forex Junkie?

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Nov 6, forex Jan 2, Every step away from a professionally structured trading plan is a step towards failure. Less work — more results The importance of time management forex crucial to successful Forex trading. Fitting Trading Into Your Life As with any source of income, or job, the way you fit your Forex trading into your life will say a lot about where on the spectrum of professional vs.

So What Type of Trader Are You? Take Home Junkie If you are serious about your trading and truly want to achieve financial freedom through sustained, profitable trading, you need to start treating your activity as you would any job in business. Previous Article Forex Analysis: Next Article Is the gold rally over?

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Forex Junkie Machine