It seems that trading tips are everywhere these days. On TV, Reddit message boards, the Internet; heck, even neighbors, co-workers, or some odd relative. How come we tend to look past the knowledge and wisdom we already have when it comes to trading the markets?
After all, markets run on the emotions, beliefs, and (quite often) the fears of the people who trade them. Moreover, learning to trade, by virtually all accounts, is called a “journey”. So why is it that so many are made to think that to trade successfully requires different rules?
It doesn’t have to be that way. To prove it, here are a few pearls of wisdom from normal, everyday life. When carried over to the markets, these can be pretty valuable trading tips.
Learn to Love Thy Self
How honesty will increase your chance of success
It all starts with self-contentment
Think back to your younger years and how many times you wrongly followed the crowd? Or you did what seemed “popular” or “cool” at the time. Looking back now, it’s funny to think how anytime we ever spoke the words “Because everybody else was doing it”. It was because we had just made a horrible decision and were now about to pay the consequences. Trading is no different! You will find your “individuality” as a trader only by working diligently to develop your trading strategy. Then, once they prove consistent and successful, you’ll have achieved what more than 90% of traders never will. At that point, why on Earth would you want to change? Individuality is a powerful tool. So in life, just as in trading, the best thing we can do is stay true to who we are. This results in us becoming the best version of ourselves that we can be. In the markets, that means being supremely committed to your Forex strategy. This also requires considering set-ups based on their merits and our own instincts, not because it’s the “flavor of the week”.
See related: 6 Steps to Writing a Battle-Tested Trading Plan
As a kid, do you remember getting in trouble not because of what you actually did wrong, but because you lied about it? Sure, the truth often hurts, but one of the most valuable trading tips out there is to keep careful, objective records in your trade journal so you can continually learn and improve your results.
As we all know, in trading (like in life), you win some, you lose some, but you have to be brutally honest with yourself in order to truly learn from your mistakes.
What really caused and/or contributed to your losing trade? Did you misread a signal, get burned by trading the news or let trading fear or emotions get the better of you?
See also: How to Deal with Losing Trades
Likewise, what made your winning trades so successful? How did you identify the trade set-up? What validation signals gave you added confidence, and how effective is your risk management?
Document everything in your journal each time you have a bad trading day. Most importantly, be extremely honest and objective when you do. Simply blaming the market for every outcome, every time will not help to improve your trading, but a healthy dose of honesty sure will!
Greed is an unattractive quality in people, but it’s a downright dangerous one in retail Forex traders. If you have ever cost yourself hard-earned capital while trying to squeeze “one more dollar” or “one more point” from a move, you know that all too well! Especially when the market is moving in our favor, it is difficult to stop and “settle” for the profits you’ve earned at that point. However, it’s a cardinal sin to break your rules in the name of greed.
See related: 5 Crippling Mistakes the Amateur Trader Will Make
If trading your strategy right down to the letter means leaving a little bit on the table, then so be it. Be thankful for the hard-earned profits you have won. Also be thankful for your ability to continue on and trade another set-up another day. Both of those are significant accomplishments that shouldn’t be underestimated. This is especially the case in an industry where success is far from guaranteed.
Trading tips are usually a dime a dozen, but here’s one we Lazy Traders truly believe in. Forex trading should not be exceptionally hard. That is also why we can say that the mottos and axioms that guide our lives ca help guide our trading. Above are some simple sayings virtually everyone has heard throughout our lives. While none seem to be game-changing trading tips on the surface, hopefully you can see how these words of wisdom work just as well in the markets as they do in life outside of them.
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