A common reason we avoid change is fear. Fear of making a mistake. Even though our current forex trading paradigm may not be working, we avoid the change simply because we are afraid of making mistakes.
Consider this: If you are not making any mistakes and you mt4 trading are not satisfied with your forex trading performance, you are probably not doing anything to find a solution. You are avoiding change.
As soon as we accept the fact that some mistakes are an inevitable part of change, the sooner we will begin to move closer to our trading goals.
For many this is counter intuitive.
For those folks who meticulously guard against making mistakes, the best way to be sure to avoid mistakes is to keep doing the same thing again and again with perfection as the goal.
The reality is that perfection is an impossible goal. Remember, the definition of insanity is to keep doing the same things over and over and expecting a different result.
Change is the key. If you are not growing, you are dying.
Every action we take moves us closer to or further away from our trading goals. No action then becomes a form of action, that takes us further from our trading goals.
A key question to ask yourself: Was your forex trading process developed before or after the internet became mainstream?
Many traders are using forex trading processes that were developed decades ago when markets traded much differently before the impact of the internet and online trading. And they refuse to change, even though their trading performance is not as good as they would like it to be.
Or they believe they can bolt on outdated modes of trading to newer processes with the belief they will trade more accurately, when in fact their unwillingness to simply give up outdated trading methods is holding them back.
The forex market did not start to garner attention until early 2000 when the margin requirements were lowered to attract the individual trader. Solid growth began in 2003, when the retail forex market began to take off. Forex brokers that wanted to take advantage of the quantum growth began offering “free education on forex trading” to attract individuals to open trading accounts. All they did essentially was to take trading processes that were developed decades ago primarily for the stock market and gave that information out for free to encourage people to open a live trading account.
One significant problem with this is that a currency pair does not trade the same way a stock or a traditional commodity does. This is the #1 reason there is such a high failure rate with forex traders. The free processes that the forex trader attempts to use simply do not work.
Fast forward another 5 years and the trading world is an entirely different place than it was even as recently as the year 2000. The internet, online trading and a global economy have changed the way markets now move.
The trend is no longer your friend because rarely are there any true trends in the forex.
While it is beneficial for a stock to move in one direction for extended periods of time, it is not beneficial for a currency to move in that same fashion. All currencies are is the stock of a country. But unlike a stock, the central banks intervene regularly to stabilize the value of the currencies. This stabilization initiated by central bank intervention creates extended sideways activity.
This means that price is changing direction frequently as it hits the top and the bottom of a range, creating a sideways trading environment.
The tools and techniques that were designed to trade in other markets decades ago before the internet not only do not perform well now in the markets they were originally designed to trade in, they will blow up your trading account when attempting to use them in the forex.
If you want to make consistent profits trading the forex and pay yourself at the end of each month, you need to be trained in reversal techniques and break out strategies based solely on interpreting price action.
Another big change is that the internet has given the solo forex trader access to free real time charting. Indicators are obsolete when trading the forex on an intra-day basis because they are lagging. The leading-edge traders that are ahead of the curve are trading solely off of price action, something that could not be done before the internet became mainstream.
Moving averages are over 50 years old. Bollinger bands, Stochastic, and so on are just as dated.
These realities are difficult for many to face. Just as the post office and home land-line telephones are becoming obsolete, so are these obsolete trading processes that do not work in the forex. Yet many keep their head in the sand and fight the change by sticking to them.
Sure some of these archaic tools and techniques still work in slow moving, low volume markets. However, the forex is the largest, most volatile market in the world so you have to be willing to constantly stay focused on learning leading edge processes. More importantly, you have to stop using the processes that are no longer effective or were never designed to be used in the forex.
The simple inability to change is what is creating inconsistent trading performance. I specifically use the term inconsistent because using outdated processes does not mean you will not have some profitable trades. The issue is that the profit is always given back to the market, simply because the forex trader is using an outdated technique that was designed to trade in a different market.
Entities that do not evolve and change become extinct. Are you currently trading lagging edge processes or leading edge processes designed specifically to make money in the forex? If you want to start paying yourself at the end of each month from your forex trading profits, consider changing your trading paradigm which may be outdated.