In forex trading, doing the little extra things to make your trading more successful can make all the difference in the world to your profit at the end of the week, month, and year. Good traders develop good trading intuition. Let me offer an example from my own trading experience. Fortunately, I acted on it, selling at 1. Less than a minute later, the market had dropped to 1.
Fewer than five minutes later it had dropped to 1. It eventually dropped all the way down to around 1. Can your intuition ever be wrong? Also, it seems to be the case that the more you use your intuition i.
I knew a commodities trader once who had a perfectly profitable trading strategy—but one that became much more profitable when he added the filter to his trades of taking only buy trade signals, no sell trade signals, when the overall daily trend was up. Conversely, he took only sell trades when the prevailing trend was down. By adding that one little filtering element to his trading he was able to double his profits. It really is very simple—the market is more likely to continue moving decisively in the direction of the prevailing overall trend.
At the very least, learn to be more cautious —i. So learn to patiently wait for the best opportunities. However; see next chart, shifted and showing price action about four hours further ahead ….
From there, you can see the market took right on off to the upside. I repeat, patience is a virtue. So, how does the casino play? First, it only plays games where it has the edge. Secondly, casinos always practice perfect execution. They always make sure their roulette wheels are perfectly balanced, that their blackjack decks are thoroughly shuffled.
Confident of having the proper trading mindset, a good strategy, sound money management rules, and the necessary self-discipline to maintain all of those, they know, just like the casinos, that in the end they will come out ahead. The bottom line is that you can substantially increase your edge as a trader, and therefore your profits, by adding a few simple tricks to your trading arsenal.
But you should always be seeking on your own for ways to refine and improve your trading. Trade with the overall trend. Trades made in line with the prevailing trend have a built-in better chance, right from the start, of being more successful than counter-trend trades do. Practice patience and wait for the best trading opportunities. Think and trade like a casino.
Develop your trading edge; practice perfect, disciplined execution of your trading strategy; and trade confident of the fact that your trading will be profitable overall—even though you may suffer a few losses along the way. As always, we welcome your comments or questions below, and ask you to share this article around with other traders. Best wishes for success always.
Jack Maverick has over 20 years of experience in futures and forex trading, first as a broker and then as an independent trader. He enjoys sharing the trading wisdom and knowledge he has gained from his own trading experience and from other successful traders.
Four forex trading tricks for increased profits. It took me awhile to learn and accept this one, but it paid off. Patience is very much a virtue in forex trading. The forex markets are open and actively trading 24 hours a day, 5 days a week—that means there will be countless occasions to take excellent trading opportunities in any given week, any given trading day. The house, the casino, always wins at the end of the day in gambling.
In your trading, you should try to be like the casino not like the reckless gambler destined to lose money. Comments There are currently no comments, be the first to post one! Only registered users may post comments.
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