You may have heard of the expression that among all the fortunes and valuable things, wisdom is the toughest to come by. The reason for this lies in what it needs it for.
Wisdom comes along with determination, hard work, perseverance, and observation. Determination inspires perseverance during tough times. Along with working hard and observing every detail of the progress, anyone can undermine all the hidden wisdom related to the work.
Here I will list some of the wisdom I have acquired over the many years of my journey with the Forex markets.
Top pieces of 10 trading wisdom
1. Failure occurs because of a lack of knowledge. Success is the byproduct of determination for acquiring more knowledge and perseverance through a distressing time. Failures are critical for your growth. Dissect them and learn as much as you can. Learning helps you in the long run.
2. Experience is nothing but collected knowledge in a specific time range. Being more experienced means having more knowledge, not putting more time. By putting insufficient effort, you can gather more knowledge quite quickly.
3. Survival matters the most in the trading business. Nobody should expose themselves to total bankruptcy. As long as they have some currency to invest, they are in the game. So, never risk an amount that you can’t afford to lose with a big smile.
4. Commissions and spreads have a way of grasping an account balance. To protect your account from their own aggression traders must target more than five pips every day. Choose a good broker like Saxo so that you can trade CFD in the best possible environment.
5. Management is not quality. It is the prayer you pray to the Almighty to prevent various risks and threats posed by the market causing you to lose money. Active management lets you lower your trading costs, exploit tax shelters, and so on.
6. Markets depend on trends. So, its course is wavy and cyclic. The same trend will appear over and over, and the same wave will be charted again and again. Traders must be aware of such patterns and look for the similarity. A profitable trader can predict the future movement of the market by analyzing these patterns.
7. Investors need to learn how to be moderate in their thoughts and activities. Being moderate is the most valuable virtue a merchant can possess.
8. Trading is more of a mind game. This game will test your brain’s capacity in all possible ways. How much it can process data, how deep it can go with its analyzing power, how accurately it can predict the next trend, how it manages risks, and what strategy would be most profitable? These are just a few of the questions you can ask yourself. These tests often overwhelm and intimidate the brain. To keep your sanity, you must take care of yourself. Taking breaks, watching humorous movies, listening to songs may all soothe your brain.
9. Trading along the trend is as tough as trading against all trends. Nobody should take any exchange easily that follows any trend. Both types have the potential to destroy the existence of a marketer. No deal comes entirely innocent. All of them pose risks, and the higher the risk they pose, the more profitable they become. Before engaging in, make sure you know all the nukes and corners of that type of dealing.
10. Two things help you the most in the exchange business: a well-planned routine and the strategies you have devised all along your Forex journey. With a proper routine, you will follow the same acceptable practices regularly and improvise them, as necessary, and thus, an effective strategy will emerge that will only work for you. Just keep faith in your work process and strategies. Success will follow.
Wisdom comes with experience. They may vary from person to person as experiences vary from person to person. Generic pieces of wisdom are expressed in this article.