We should all understand that foreign exchange trading is not a get-rich-quick activity: money will not fall from the sky into our laps. It’s not a game, but a business. It’s hard, but, literally could be a rewarding part of life’s journey. It could also lead to your assets being stripped bare, losing more than your shirt.
In general, you can do well just trading the majors. You may have interest in trading the minors; these can be similar commodities, but their own characteristics–some may seem a little loonie or act like a cad. But the kernel of the market is the well-known pairs. Though on the margins, exotic pairs can be fun, if you get to understand their personalities. If you struggle with them, don’t get too cross. But, you do not need to spread your energy too thinly by making multiple trades or taking multiple positions in pairs that are essentially the same.
You will need courage, and the yen to withstand the physical, psychological, and financial challenges, and to enjoy what you do. Deciding to trade has to be your own, personal decision, and you should not let anyone intervene and stimulate you artificially, or deflate your hopes .
You should not be stubborn or have a bias when trading: prices rise and fall, not moving in one direction forever. Markets will move as they please. The long and short of it is that you should keep an open mind, and not be closed in your decisions about any particular position. Stay balanced.
When things go wrong–and they will–your dolor may rise and the boat you row may sink. But, you may need to take the pounding to make you stronger: feel the pain to see the gain.
Even the very best traders need to be sterling in their resolve, if they are dealing with Cable, and not let her gyrations get your nicker, or knickers, in a twist . She can seem very erratic, even fickle. But, treat her well and she will give you all you ask for. The bottom line is what counts, so keep calm if she pulls against your will; just make sure that she does not you to have excessive draw downs.
The Kiwi needs delicate handling, and sometimes can be puzzling to trade. At times, it’s truly like the flightless bird. It struggles to find wings and take flight, often bobbing up and down for hours on end with little energy and no idea of where to go. Then, like the fruit, if it is squeezed, it has some juice and flies up into the air.
Remember, whether you are a technical or fundamental analysts and trader, this profession should be fun and not drive you mental. It should not lead you to take Nicol.
Keep it safe. Keep it tight. Have a great weekend.