Forex Strategies and Tips
It's YOU ~ Not The Strategy
It's not a timed game, so there isn't any pressure to do it in a specific time period, but it is plenty challenging. As the games get more complex, I spend more and more time on each puzzle and savor my solution.
Trainyard has a web site where I discovered I could post my solutions (which you can see here). Imagine my surprise when I posted one of my results and saw that this particular puzzle had over 7,181 other posts showing solutions that were all different from mine!
... Just Like Forex
When I realized how many solutions to my Trainyard puzzle there were, it reminded me exactly of our own journey to learn Forex trading.
When we started trading in 2005, we began with the assumption that there was only one correct way to trade the Forex markets -just like when I began playing Trainyard, I thought that each puzzle had only one unique solution.
In the same way, we thought that there would be only one unique winning forex strategy that would unlock the door to riches beyond belief. The Trainyard surprise was just like the amazement we had when we discovered there were so many radically different approaches to Forex trading.
Who's Got The Holy Grail of Forex?
For years and years we pursued every "hot" forex mentor that was out there. We were in every forex chat room, forum and trading class. We could even be found on our exercise machines watching courses about particular forex strategies.
Now... stepping away from the trees in order to see the forest... we see that there are a vast number of ways to trade.
Show the same currency chart to half a dozen forex traders and you'll get half a dozen solutions – or more.
- One will say that the forex market is definitely bullish and he's waiting for the breakout.
- Another will say that no, the market is bearish and she's just waiting for that trend line to be broken.
- The third one will say that the market is in a pennant, waiting to break south.
- The fourth will say that he sees consolidation and is standing on the side lines.
- The fifth will say that the engulfing candle is his signal to go long.
- The sixth will say that the Bollinger Bands she's drawn, along with the Moving Average and the Heiken Ashe candles all clearly point to it being a great short.
And each argument can be compelling and each of those traders could be right and make money. Just like the 7,000+ solutions that all worked for getting Train A to Station A and Train B to Station B.
It's not the strategy, it's YOU!
Years ago one of our Forex Smart Tools customers, Dean from So. Africa, spent time with us trying to get us to understand that it wasn't the forex market, it wasn't the strategy, it wasn't the technique – it was US.
"It's not the strategy, it's YOU!"
It took us years to begin to grasp the truth and subtlety of this Zen koan.
And again, it's just like the Trainyard game. Ultimately, it doesn't matter how anyone else solved the puzzle. For each of us: it's all about our individual approach to it.
In the Trainyard game, developing that ownership of your own solution is what yields the satisfaction and fun.
In the forex market, developing that ownership of your own solution is what yields consistency and profitability.
There are so many ways to trade the forex market. That's why we no longer participate in chat rooms, forums or classes. We've discovered our own path and it's working really well for us. We don't want to get swayed by anyone else's solution to Trainyard or forex trading.
"The consistency you seek is in your mind, not in the markets."
The Black Hole Of Doom
Other than the importance of good money management (use your Forex Calculator) and keeping a journal of your trades (use your Trade Log), this is the most important lesson we could pass on to aspiring Forex traders:
Pick One Strategy And Stick With It
The most successful traders we have met have done just that.
And on the opposite side...
The most frustrated traders we have known are those who are always looking for the next hot strategy or winning technique.
The black hole of doom and the sure road to financial disaster in trading is to move from one strategy to another, over and over and over again.
And it's super-hard not to do this! Because there will ALWAYS be a different strategy that works better than yours for some setup or at some time or with some other person's application of it.
You have to live with that if you are to ultimately succeed. You have to live with the other 7,181 solutions to the puzzle.
Have you read our article on Keeping it Simple? If not, you'll find it a great inspiration backing up this idea, as it explains the surprising route it takes to become a Master Trader.