Watching, Waiting & Forex Trading
When people get excited about forex trading, they instantly get dazzled about making thousands of dollars a day trading the forex. While this is exciting, there’s another factor involved that few forex trading courses will even mention…
One word that’s critically important to your success as a forex trader…
Patience!
If you want to be at the right place at the right time, you will need a level of patience for forex trading.
Sometimes the forex moves quickly, like when I got stopped out for a 28 pip loss in less than an hour on the usd/chf a few days ago… Or yesterday when I watched a currency pair for over 24 hours with the live bootcamp members and it was like watching grass grow…
Hunting for Pips
Forex trading is a lot like hunting. You go out and look for places where the animal might go (look for a wave pattern), then you sit in the tree (watch your computer) and wait for the animal to walk into your kill zone (retrace to the 68.2% level).
You’re not guaranteed to catch or kill anything, sometimes you can sit there all day and nothing happens. Sometimes the prey falls almost within your sites, but you just can’t get a clear shot…
Drawing Lines and Waiting
A skilled forex trader will look at the charts as they are & imagine what would have to happen on a price chart for a trade to be possible.
The he/she will draw the appropriate trendlines & channel lines and wait…
The market will often not do what the trader is looking for, this is ok because the skilled forex trader will wait for the right situation to emerge before entering the trade.
The Imagination of a Trader
Here’s a tip for you to become an expert forex trader as quickly as you would like to.
When looking at charts, imagine what would have to happen for the currency pair to present a trading opportunity. You have a powerful fibonacci wave theory in the forex sailing course.
If there is a consolidation, imagine a new wave breaking out of the channel (or triangle) either up or down. If this breakout occurs, would it be compatible with the direction of the charts in other timeframes? Would one of these waves be tradeable?
If you have a trend, do the same thing. You can imagine a trend continuation, or a reversal. Which one is the opportunity that you’d be willing to trade.
Draw some lines on your charts and look for where you would enter, or where you’d stop watching and look somewhere else.
After you go through this process in your mind, watch what happens. If your ideal trading situation happens, enter the trade. If it doesn’t, look for a new trading possibility…
As a professional forex trader, I’m always watching some currency pair closely. I’ll be continuing to share this watching & waiting analysis with the live forex trading bootcamp members, as well as when I actually enter a trade.
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Tags: forex swing trading, forex trading bootcamp, forex trading online, imagination, patience, persistence Posted in
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July 10th, 2010 at 2:41 am
Hi Brian,
Thanks for the great article and reminder of what it takes to be a pro trader. Taking trades out of boredom or to “make up” for a trade that you missed or didn’t take when it set up, is a sure way to empty a trading acccount.
Thanks for taking time to put this article on your site.
Best regards.
Charles
[Reply]
July 10th, 2010 at 6:13 am
That’s my problem I need to be patient. I think you should be able to trade at any time and I find I’m always going the wrong way.
[Reply]
July 10th, 2010 at 4:03 pm
Hi Brian
While we are waiting for a wave pattern to develop. I wonder if you could produce some training video examples for us to learn more.
Other than Trend line drawing, Fibonacci calculator, support resistance, do you use other indicators on the chart for analysis?
From your experience, what time frame is the easiest and profitable to trade for living? And how much to invest in the account to start trading for living and trading with what lot size? These questions, I think a lot of people would like to know too.:)
Thanks
Kulvadee
[Reply]
Rapid Forex
Reply:
July 11th, 2010 at 10:35 am
@Kulvadee – thank you for your comment. I’ll keep this in mind when I prepare the next blog posts
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