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Forex Trading Strategy - Slow Down to visit Fast



I originate from an auto racing background in that sport there is a saying that goes, "sometimes you need to slow down to visit fast." This saying definitely pertains to FX trading too.

In auto racing, like trading, most rookies think 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 starts with non-farm payroll (NFP) around the first Friday and through this week price often behaves in a certain way. During the second week of each month, after NFP, currencies will frequently change course and behave within an entirely different manner. Now think about a typical trading day. Is there such a thing? Yes, occasionally there is more price movement, but this movement rarely moves inside a straight line. As rookie traders we quite often put logic aside and concentrate on speed in the end attempt to trade every move we have seen and each gut feeling that we have. A rookie forex trader, similar to the rookie race car driver, often forgets or does not appreciate that it's the way you manage your car, as well as your account, within the curves that determines how you finish the race.

I have written before about one way you are able to decelerate when forex 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 a logical person if you have reasonable goals and expectations in your forex trading. It is easy to forget the guy by having an interesting accent is trying to sell us something and that we forget to ask ourselves if what we should are listening to forex success is reasonable. Forex marketers would like you to believe in going fast because the faster they enable you to get thinking, the faster you will purchase.

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A different way to slow down in forex trading would be to evaluate the timeframe you are deciding to trade. Sure, there is much more adrenaline and excitement trading a lower time period, but fast timeframes require fast decision making. Slow down and trade a higher time frame which means you will have more time to judge the chart, choose in which you wish to trade from, and make better decisions. I showed countless traders how easy it is, and low stress it may be, to check a chart twice daily instead of twice every minute.

The end goal of any forex trading strategy is to develop your account. Account growth may be the ultimate way of measuring success, not adrenaline. Take two weeks off and understand why you need to trade after which decelerate and see how quickly your trading success can come. What you can do to handle those trading twists and turns will make all the difference.