We should all do our best to strive to continuously improve ourselves. I think it’s part of the human condition to want to constantly outdo yourself. Trading in the foreign exchange markets is extremely difficult and requires a lot of practice time, money effort and constant Improvement. I find that sometimes when we try to improve in one activity they can be helpful to look at others and take beneficial aspects of different activities and try to incorporate them into your own. Let us take a look at some creative ways that we can improve our Forex Trading outside of the normal book crunching method.
Mental Conditioning
One of the most difficult aspects of the Foreign Exchange Market is the mind game that the markets and the trader play with each other. It’s a constant back-and-forth between am I right or am I wrong? Should I sell? Should I buy? Did I make the right choice? Getting over the mental difficulties of trading on the foreign exchange markets can be a daunting task but I think we can approach it in smaller doses by conditioning ourselves outside of the markets.
For example, one of the ways you can try to condition yourself is to play a simple game on your commute to work. Let ‘s say every time we drive to work, I’m sure a lot of us take a look at the price of the gas and wonder to ourselves if it’s going to go up or down. Well, why not take a shot in the dark just for fun and make a call whether it’s going to go up or down and whether you should buy gas or not. And then stick with that decision and see how it turned out. It’s a small game but it’s small decision-making games like this that I feel can help you stick with your information and not get whipsawed in the markets.
That was a very obvious example that relates closely to the markets but another way you can practice this is to, for example, the next time you get frustrated with something or somebody try and step back and emotionally separate yourself from the situation and break it down for fact. Approaching a problem in this manner it’s very logical and problem-solving and could help you develop skills to better attack the financial markets.
Different Currencies/ Markets
There is an extremely large amount of possibilities of stocks, options, and currencies that can be traded online. All these markets have their own ways of trading, their own details and, their own niche traders. However, a lot of these markets offer a different perspective on how to approach Trading. Recently, Bitcoin and cryptocurrency have become extremely large markets and are in direct competition with the foreign exchange markets.
These markets are even more volatile than the Foreign Exchange Market and can be a fantastic place to learn how to handle High volatility trading. The same markets also have a significantly smaller market cap meaning each individual’s trade is much more reflected in the price of the currency or stock being traded.
This means that you can actually watch for certain individuals which we call “whales” in the market that can manipulate the price in such a way that if you catch one, you can make money using a system and following their trading patterns. Conversely, the stock market is a much slower market with less volatility. This kind of Market is good for long-term Trading and perhaps practicing Trend trading over a length of time. This is often referred to as going long in the market.
Regardless of which markets you decide to choose a lot of trading strategies can overlap into other markets and you can learn skills from each market and apply them to others. Find out more by going online and doing a little bit of research on different strategies that are available and try them out on different markets and see how they work and what you learn. You will be surprised just how available these strategies are for anyone, yet not most people reap the benefits.
Forex markets can be a very daunting Market to enter and there’s always something more to be learned. The best way I find to be an effective way to handle myself in the market is to mentally prepare myself outside in everyday situations and apply that steadfastness to my trading. Embrace the difficult situations of everyday life, accept that stress, work through it, and see that you will become a much more confident and successful trader.
Don’t forget to always push yourself to find new information, try new things and apply that information to what you’re already good at and see if you can find a way to improve yourself even further. Good luck and have fun traders.