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Forex Trading Strategy - Slow Down to Go Fast



I originate from an auto racing background and for the reason that sport there is a stating that goes, "sometimes you need to decelerate to go fast." This saying definitely pertains to FX trading too.

In auto racing, like trading, most rookies believe that greater you press the pedal, the faster you will go. This might be true when driving in a straight line, but racing, much like trading involves many turns. Look at a typical trading month in forex. The month begins with non-farm payroll (NFP) on the first Friday and during this week price often behaves inside a certain way. During the second week of every month, after NFP, currencies will frequently change course and behave in an entirely different manner. Now look at a typical trading day. Is there such a thing? Yes, there are times when there is more price movement, but this movement rarely moves in a straight line. As rookie traders we often put logic aside and focus on speed in the end make an effort to trade every move we see and each gut feeling that we have. A rookie forex trader, similar to the rookie race car driver, often forgets or doesn't appreciate that it is how you manage your vehicle, and your account, within the curves that determines the way you finish the race.

I have written before about one of the ways you can decelerate when trading currencies online, I refer to it as taking fourteen days off. Take a rest from trading and define why you want to be an investor, what your expectations are, and whether those expectations are realistic. Ask may well person for those who have reasonable goals and expectations in your forex trading. You can easily forget the guy with an interesting accent is trying to market us something and we forget to inquire about ourselves if what we are listening to forex success is affordable. Forex marketers want you to believe in going fast since the faster they get you thinking, the faster you will buy.

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Another way to decelerate in forex trading would be to assess the timeframe you are deciding to trade. Sure, there's much more adrenaline and excitement trading a lesser time period, but fast timeframes require fast making decisions. Decelerate and trade a greater time period which means you may have additional time to judge the chart, choose where you wish to trade from, and make better decisions. I showed countless traders how easy it's, and low stress it may be, to check a chart twice daily instead of twice every minute.

The end goal of any forex currency trading strategy is to grow your bank account. Account growth is the ultimate measure of success, not adrenaline. Take two weeks off and figure out why you want to trade and then slow down and find out how fast your trading success will come. What you can do to deal with those trading twists and turns can make a big difference.