We've identified 3 kinds of traders. See if you can place yourself into one of these three categories:
1) The Thrill Seeker:
Trading is a thrill. You have a whole bunch of ways you trade, with a variety of things you see that get you into the market, and a variety of factors that get you out of each trade. You're not really sure which works the best. Sometimes you're profitable, sometimes you take a big hit; generally your equity curve is pointing downward over time. You're intrigued by trading, but not sure if you're going to make this work for you over the long haul.
2) The Aspiring Student
You've taken a course or two... or thirty... from some "Forex Guru", and try to follow what you've been taught. Sometimes the approach you've learned fits with what you see the markets doing and you get ecstatic and hopeful; other times the market does just the opposite and you get discouraged and want to quit. Your equity curve and your emotions are up and down like a yo-yo. You're not ready to let go of your day job yet.
3) The Independent Thinker
You've taken everything you've learned and been taught, and you're starting to think about it for yourself in a logical and orderly way. You're separating the good trades from the bad and you spend time after each trading session and at the end of each week looking back at what you did and what you could have done better. Each trade becomes a platform for learning. You've committed to being able to trade Forex for your livelihood – whatever it takes.
Which are you?
For ourselves, our own path to mastery went through each of these stages... from intrigued thrill-seekers to the good-little students... to independent free-thinkers. Our equity curve didn't start the upward slope until we made it to stage three.
Accountability is one of the main factors of success as a Forex trader. Start keeping a Trade Log and see for yourself. You'll be much less likely to impulsively take a trade if you know that you have to take screen shots, log it and justify your entry, stop loss and exit. You'll find that you have much more patience to sit like a duck hunter and wait for all of your trade requirements to be in order.
There are no traders who are in stage three who do not keep a careful record of their trades. If you use the Forex Smart Tools Trade Log, we make this easy for you to do. But whether you use our Log or not, the sooner you keep careful track of each and every trade you take, the faster you'll see your trading skills improve.
We ourselves are full-time professional Forex traders. We've been trading since 2005 and are members of the National Futures Association (NFA). Our private firm is registered with the CFTC as a CTA: Commodity Trade Advisor.
In our own experience, we saw that no one had created the tools we needed to quickly make precise trading decisions based on intelligent money management, and to analyze the trades after we took them – so we created them ourselves. These two pieces of software come from our real-life trading experience, and are designed to be intuitive, easy-to-use and accurate, while offering a high degree of customization to fit your own style of trading. For us, these tools made the difference between being consistently profitable in our trading – and not! We ourselves use them every day we trade.
Good trading to you all, Evelyn & Mindy