In part one I started listing some ideas to help the fledgling trader develop a greater sense of confidence. We all know the old axiom, practice makes perfect. Doubly true in Forex trading. Practice, practice, practice, practice, and practice some more. I tell you the truth, I spend more time with my demo account in my live account. Granted I try lots of new strategies, or just experiment with new trading ideas on an almost daily basis, but I also use my demo accounts for taking excess signals trades (I may not be able to take every signal I receive in my live accounts, but I do like to see how the signals I don’t take in my live accounts perform in demo). You see, every bit of experience you are exposed to will, over time, give you a more confident perspective on the market and on your ability to trade with it.
Another activity that is useful in building confidence is to spend some time focused on just one currency pair. Pay attention to it throughout the day and throughout the week; watch how it moves, and learn its rhythms. This will take time, but after a while you will develop a certain feel for the currency pair in question and you will find yourself saying things like “I knew it was going to do that…” And so on. Confidence goes hand-in-hand with comfort; with time well spent in watching the market, one will become less apprehensive when a trade goes negative, and help us not to fret while waiting for price action to reverse and move once again in our favor.
Developing into a confident trader will not happen overnight. But it will happen with time, and you’ll find that this trading business will, as your confidence grows, become easier and, and hopefully more rewarding. I know in my own experience, that my day-to-day trading experiences became less stressful and more enjoyable as my confidence level increased. Remember, you are not alone. None of us were born with the skill set of a Forex trader, but with access to the right environment, the right information, and the right encouragement, the path to Forex trading success can be made less difficult.
I know that my journey to Forex self-confidence was greatly aided by being a member of Slick Trade. Interaction with other traders just like myself, sharing difficulties, seeking advice, learning from each other as well as having access to great learning resources also made a difference for me. And possibly for you as well? If you’ve been considering becoming a Sapphire member, why wait any longer? Sign up today, you’ll be glad you did!
That’s all for this week. I hope you like the new format. Have a great week and, as always, thanks for reading.