If your greatest dream is positioning yourself as a Forex trading expert and be that person who all other newbies look to for advice and guidance, then you need to do something different from the rest. You must sharpen your focus and another prerequisite to have pointed laser beam-like concentration.
You certainly cannot fluctuate and change strategies every week like many amateur traders do. If you take a close look at champions and experts and masters of any craft, you will notice that they all have just one thing in common and that is extreme focus and dedication.
Disregard everything you have practiced up to this point in your trading career, for the reason that if you truly want to master a unique forex trading strategy, then it is essential to delete off all the confusing indicator and software based trading methods embedded in your brain.
One of the biggest problems that plague traders who are attempting to adopt a new strategy to the forex market is that they seem to carrying a lot of prejudices and failed trading concepts with them. If you truly want to shine at forex trading and embrace a fresh new trading strategy, you need to focus on a lone solitary strategy.
You have to discipline your mindset to get rid of all your antecedent failed trading methods so that none of them impact your present outlook on the market.
How to Discipline Your Mindset?
Two attributes-discipline and objectivity are an absolute must if you wish to excel at forex trading. But be warned that taking just one forex trading strategy at a time and finally mastering it is going to be turn out to be a long-drawn process.
Nevertheless, let me also inform you that all of your hard work is definitely going to be rewarded, as you now stand an increased chance of earning profits with trading. Moreover, once you gain mastery over a particular strategy, you will almost instantaneously recognize the setup when present.
You will also be capable of taking better decisions while deciding which trades to take and which ones to pass on.
If you can extend this discipline and objectivity into remaining areas of your trading such as risk management and maintaining calm and collected trading demeanor, then you can reap multiple benefits.
It goes without saying that keeping your attention undivided is going to fetch you awesome results, especially when trading. Your newly gained mastery over your strategy will undoubtedly contribute towards wiser trading decisions. Each intelligent decision that you make will contribute in building your confidence.
Understanding Your Goal
In essence, your actual objective behind developing mastery over a single forex trading strategy is to minimize your hard work. In other words, you must aim to reduce the number of parameters that you have to analyze before coming to a trading decision using that strategy.
Unfortunately, this is exactly the opposite of what most of the other traders are doing out there. They are braking their brains over analyzing huge amounts of data. They are in fact trying to find a needle in a haystack. Too much of data can not only weaken your focus but also the quality of analysis that you are extracting from it.
So keep your goals simple. Learn to focus on just the essential parameters in deciding whether you want to apply or reject a particular trading strategy.
Actual Steps to Owning a Price Action Setup
The process to gaining dominant expertise over a price action setup begins with one thing-focus. You have to make your setup the only focus of your entire attention until you can confidently claim mastery over it.
Now this does take a lot of discipline and sacrifice (if you may call it that way). Gaining mastery over a particular setup will be accomplished by virtually making it your sole objective whenever you deal with or connect to the forex market. You do not even want to look at anything else and you are interested in dealing with the market only if this setup is available.
Follow this routine until you reach a point where you can confidently recognize every angle and circumstances in which this setup can or should be traded in. Keeping a trading journal to register under which market conditions the setup excelled in and which situations it performed weaker in, will be an added advantage.
Remember that practice makes man perfect, so use a demo account to practice what you have learned. You cannot get too much of practice; so aim at applying all your newly learned insights on the demo account and keep at it until you reach a point where you are consistently reaping success with it.
Only after you have repeatedly tasted success on a demo account with your newly learned setup, should you even venture into applying the same on a live account. Once you are seeing consistent results on a live account as well, only then can you genuinely claim mastery over this setup. Until then you have got to focus, scrutinize, study and repeatedly keep practicing.
What is the Most Crucial Factor to Remember?
Before winding up this post I would love to call your attention to an important factor that needs to be kept in mind. When you claim mastery over a certain price setup, it does not simply mean recognizing its presence. It also involves excelling at applying that setup in a particular context.
To illustrate this point better, let us consider that you have mastered the pin bar strategy in a trending market and only enter or exit at confluent levels inside the trend.
In order to completely master one price action setup, you must be adept at using it in one particular market condition. To continue with the example cited above, you probably would want to master the fakey strategy in range-bound markets or the inside bar strategy in down-trending markets.
So the synopsis is that you can safely claim to have acquired mastery of a certain forex trading strategy only after you have become adept at recognizing and applying the actual price pattern by itself and also in combination with the particular market condition you trade it in.