Hello Friend,
It's a myth that there is ONE SINGLE BEST trading style that suits everyone.
Many forex trading "gurus" claim so. They advocate something like:
"After years of study... Having been through the highs and lows, successes and failures... I finally cracked the secret in forex trading... and here's the trading style that's proven to work for everyone.
"Follow this to the tee, and I can ensure your success in forex trading."
Sounds good, but too good to be true.
Let me be clear here: There is no ONE trading style that fits everyone.
Just like different diet habits are good for different people, the style that works for others might or might not work for you. It's as simple as that.
But how do you find out the style that works for you?
Again, you have to check your personality -- and preferences. (Yes, preferences are important too! You have to find a style that you truthfully enjoy following. Otherwise it becomes a chore, and you won't persist.)
To begin, here are a list of questions you have to ask yourself:
1. What do you aim to achieve through forex trading?
2. Based solely on intuition: What style do you prefer? (Momentum, day trading, swing trading, or position trading.)
3. Now based on logical reasoning: Why do you prefer this style?
4. What markets do you prefer to trade in, and why? (Do you like to trade all currency pairs or just certain ones? CFD's such as commodities and stock indices?) Believe it or not, your trading style has a lot to do with your market choices too!
5. How do you fit your lifestyle into trading? E.g. what hours during the day do you trade? For how long? (There are three 8-hour time zones – Asia kicks off the trading day, then Europe starts, and North America finishes the trading day…)
Besides these, checking your stress threshold can help in determining your trading style too.
Everyone claims that he/she works well under pressure (our modern society seems to require us to do so), but you have to be honest with yourself.
Ask yourself:- Are you able to handle stress well? - Do you feel burned out easily?- If your trading results don't go well, do you easily feel discouraged?
The style you choose has to be one that you can handle both logically and emotionally. This is vital to ensure your success.
What we discussed today is an extension of the "understanding yourself" lesson in the first e-mail. It's still the "soft" side of trading.
In the next episode, we will have a discussion on the "hard" (or technical) side -- We will talk about your "GAME PLAN".
Best Regards,
Jody Samuels
Jody Samuels and The FX Trader's EDGE Team
jody@fxtradersedge.com
P.S. I am facing a dilemma.
There is actually a further extension to the "soft" side of my forex training, that I teach only to my students. It's a secret that I rely on to survive (in fact, doing quite well) in this industry for a good 40+ years and counting.
Not many forex trainers talk about this. At this point of writing, I am not sure whether to share this secret openly yet...
I shall think about it. But if you are impatient, find out from this course:
Click Here and go straight to Lesson Eight after you sign up.
Disclaimer: Trading is risky so only risk capital should be used.
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