Sun Tzu"s Art of War Provides The Solution To Your Trading Blues
Sun Tzu's Art of War provides a key solution to successful battle, which can be extrapolated to Forex trading.
Sun Tzu's Art of War called it: "Know Your Enemy"
And your enemy in Forex trading is merely the Forex market itself and you- the person itself.
To win in the Forex market, you must know the Forex market itself - in other words, you must get to understand the currency-pairs that you are trading on. Spend time to study their price movements.
Know what trading patterns and setups occur time and again in those currency-pairs. Be familiar with the risk-reward ratios of each specific trade pattern for those currency-pairs you are trading. Define and apply a specific trading strategy for those currency-pairs you trade. Know when to enter and exit the market and when to stay away. The best way to ensure you are doing it correctly is to get another experienced and successful trader to mentor or to show you the ropes. Budget to learn before you trade.
As to the other part of the battle, you need to see the part of you, yourself who is the enemy. Forex trading involves decision making where your risk tolerance is put to the test, where emotions of greed and fear will play a daily tug of war within your heart. The solution to win this emotional battle is to trade with discipline. Adopting a winning strategy, a winning plan complete with risk management and ensuring you do not deviate from that plan is a necessity for you to win.
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