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Forex Trading Insights – At The5ers, we get to speak to many of our traders about their strategies, systems, and emotions through our Portfolio Analyst Resource.
We hear about the traders’ challenges and successes!
From these talks, we get to learn a lot of important insights regarding trading performance that might be helpful for all of you!
Insight: Any daily, weekly, or monthly personal profit goal is absolutely arbitrary. The market does not behave according to our time measurements (days or weeks). Your system will provide you a certain amount of signals regardless of the time period. There might be some very busy days and there might be very quiet weeks. The market behavior changes all the time, so we need to focus on taking our signals only when they present themselves. Forget about daily or weekly profit targets and focus on the correct trading process.
Insight: Being on time for a trade is as important as being in the right direction of trading. Getting early or late will only damage your ratios. To avoid that in the future, it is imperative to have your entry signals written down so you know exactly when, how, and why to enter a trade. I will send you a worksheet that will help you out with that.
Also, there are some techniques to join a trade in case you are late to the first entry, such as going to a lower Time Frame and looking for a new entry signal, but you need to practice this before trying it on your real accounts.
Insight: Most emotional challenges are a result of having a lot size larger than your risk profile is used to. Reducing your lot size considerably will prevent you from facing most emotional challenges, and will keep you from making mistakes triggered by those emotions. Try reducing your lot size and make sure you understand why you are entering each trade so you feel you are in control.
Insight: We need to remember that price will fluctuate quite freely between support and resistance levels or pivot points. The best is to place your stops after those levels or points so they don’t get triggered. Don’t forget to take into account the spread and that it might widen during the night or new events and potentially hit your stop losses.
Some trading challenges are very common across many traders. Some of them are more sophisticated but some have a relatively simple solution.
We are happy to see the improvement in the equity curve of the traders who have attended a Portfolio Analyst meeting.
If you are a 5ers trader, you can also schedule an appointment with one of our portfolio analysts to share your challenges and get some feedback. Just go to your dashboard and save your spot.
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