by Chris Lori CTA

The natural process of aiming to succeed at trading in any asset class will lead down countless paths of exploration and revelation. Exploring the endless means by which one can extract money from the market is eternal, because for every participant in the market, there is a unique mind interpreting information flow and making decisions. Exploring, information gathering and the formation of one's Unique Psychological Profile are critical to overall success. In retail forex trading, the patterns are clear, to name a few:

• Attraction to high leverage - although no leverage should be used when developing (I will produce a video on this, later)
  • Acquire information via internet, books, free courses, free webinars, etc.
• Indicatoritis - There is an addiction to indicators, because as one goes through the developmental stages lacking confidence, it is believed that an indicator is smart enough to do the thinking for you and that the producer of the indicator must be smart and that it must work or it wouldn't be an indicator in the marketplace.
  • Exploration of systems, patterns, programming, robots, fundamentals and trying to copy exactly what someone else is doing believing it will work for you.
  • Understanding risk and psychology, rejecting risk and psychology and taking trades on little knowledge and high risk
  • the list goes on, but u get the point
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Don't be discouraged, every trader goes through this process, but those who ultimately succeed will come to terms with the challenges before them and focus in on what's important, such as; market knowledge, independent thinking, risk management and developing a method in sync with their Unique Psychological Profile. Read More...