Anyone who enters the Forex market to trade always starts with good intentions. Invariably, they will strive to win. They are there to make gigantic profits in the market. After all, it was a keen interest in trading that led to their involvement in forex trading.
In all my years of trading, I have yet to meet a complete novice who is in the forex market to trade without spending at least some time learning how to trade. At worst, the forex novice has at least learned the technical terms to trade and has at least gone into his trading account to look at the trading platform and trading interface provided by his broker.
In their quest to become a better traders, most forex traders I know have learned to use many tools, usually technical ones. For them, these tools are their weapons of war. Many use technical trading systems to help them get a more accurate analysis of price movements and examine price trends. Some use simple trend trading methods such as trend lines, others use price patterns for congestion and breakouts, some use more sophisticated Elliot wave counting and WD Gann squares for price and time, and some even use forecasting and astronomical neural networks. Nevertheless, with the help of many trading tools, the vast majority of traders are still not profitable.
Therein lies the problem for many traders.
In forex trading, as in all forms of market trading, the number of tools you use, singly or in synergy, will not guarantee your success. Having a battery of technical indicators to provide you with a technical reading will not guarantee your success in trading. At best, these technical indicators will help you understand the market trend more, or they may even serve to confuse you, especially if they generate conflicting signals.
Forex trading, is like fighting a battle, and the following rule is true:
“It is not the sword that wins the battle.
It is the warrior who wields it.”
It is the warrior who wields the sword that will decide the outcome of the battle. In other words, if you are a forex trader, it is your trading discipline and proper use of the trading tool or method that will ensure your success. It is you, the trading warrior who wields the trading tool correctly, that can ensure that the battle is won.
Therefore, to become a successful trader, you will need to master yourself – to follow a set of trading methods and execute trades based on a trading plan, where you will adhere strictly to the best trading setups and exit at predetermined stop losses. Without trading discipline, you will not be able to master your trades, and profits will be difficult to achieve.
Only when you master yourself to conduct trading discipline and master your trades by following a proven trading methodology with timely and appropriate entry and exit strategies, can you become a profitable trader?