Forex After The Storm... Sharing My Experience

I've not started a thread before, but I have learned so much over the years of trading that I thought it was my duty to share my experiences and as a result my techniques for avoiding being burned by the charts and more importantly how to stay in credit and keep your sanity!

This is mainly aimed at newcomers, so apologies if experienced traders find this of no benefit, but I remember when I started off how much I needed someone to show me the ropes, so this is my take on that.

Before I begin - this is NOT an advert or trying to sell you something. I've been online long enough to spot when people post something as a marketing opportunity or sell you the 'most amazing indicator you will ever need, for $97' and so on and so forth. This is just a little bit of me giving something back in the hope it spares people some of the stress and nightmares I landed in through a lack of experience and putting my faith in something that was in fact just quicksand. All of the indicators I use now are free, so as a preliminary warning, keep your cash in your pocket!

I will touch upon indicators and strategy, but also the psychology of trading, which for me was just as important.

So let's begin....

Attribute ONE - Patience.

Forex is a great way to make money and also a fabulous way to bankrupt yourself. Let's face it, all you have to do is enter a trade, wait, and then extract your cash. Couldn't be simpler could it? So why does it go wrong so many times?

The market operates outside your influence and your decision making. There is no amount of hoping, or "It should move this way" or "But my indicator says" that will change the fact that you are not in control of it. Your job is to follow it and join in. Patience is the key.

Today (7th Sept 2018) has been a prime example. Trading the EURUSD I sat and watched (in the UK) from 7.30AM when I stared at the computer and I thought to myself "This is already in motion, there's a steady climb which may well continue, but for now I'm going to have coffee and watch." So I did just that. I won't go into the strategy yet as that detracts from this first point - patience.
The chart did indeed climb, but FOREX never moves in one direction forever, so I waited it out in case entering long would see my entry go in just at the point at which things started to point the opposite way. By this time I had waited about three hours, but to me three hours of watching is better than three hours of "Oh no, it's going the other way and here comes my Stop Loss".
Eventually by the second cup of tea various signs started to appear and after confirmation of a change in direction I entered. Using a trailing stop EA I knew that once I was a certain amount in credit I was protected from any kind of loss, so the best feeling in the world followed - I could RELAX.

As it turned out I came out of the trade at the Pivot Point, but could have stayed all the way down to the Day Low and taken about 400 pips as I write this. Maybe a lesson in patience not greed on my part!

The key to this wasn't just knowing when to enter, but also WAITING for that point.
There is no rush to make money in FOREX, there is always another day, another opportunity. Each day brings fresh movements and new chances to make money. Don't think you have to do it all right now, this hour, this day. Getting it right is just as much about waiting as it is action.

So keep calm and wait for that opportunity - if in doubt try again tomorrow.

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