Trade To Your Taste
Do you like to fish, or do you prefer downhill skiing? How you answer that question may have a greater impact on your trading success than the most robust trading strategy you can devise. The FX market offers multiple avenues to trading success, but in order to take advantage of these opportunities, you must first understand your strengths and weaknesses. Most traders are taught that there is only one “proper way to trade”. Nothing could be further from the truth. As an adult, you are highly unlikely to change your ways; markets, on the other hand, change all the time. Therefore, it is far easier to find a trading technique that is in sync with your personality than to try to conform to someone else’s idea of a “proper trader”. Forex
Trading Strategies
So, why are fishing and downhill skiing so important? Believe it or not, this is a question about trend and counter-trend trading. Fishers trend, skiers fade. This is because fishing requires time, methodology and, most importantly, patience. Like trend traders, those who fish will cast their line many times before they get a bite. Downhill skiers, on the other hand, look for the quick thrill with a very specific goal – the end of the run. This psychological drive is similar to what drives faders – the quest for fast profits as currency prices make a quick retrace. Does fishing always lead to trend trading and skiing to counter-trending? Of course not. However, the activity you choose suggests a definite predilection for one style versus the other.
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