Forex Education Part 2 - Patience Is A Virtue

Your Forex education does not stop as soon as you finish your Forex trading course. It will continue throughout your career as you consistently find ways to improve your current trading strategy, find faults in past strategies or simply learn new ways of trading the Forex. In order to adapt to a trading style that will deliver profits however, the hardest quality to acquire is patience.

Your ability to be patient can seriously effect your trading future. This is especially true for people who have just finished their Forex trading course. Why? Simply because they feel they should make as many trades as possible. When they are pumped up from their Forex education programme they simply think every trade they make will be profitable as they cannot compute with failure yet so, why not make as many trades as you can? Even though this is quite common, it still doesn't change the fact that it is a mistake.

For example, throughout your Forex education, you may have been taught that the open on today's candlestick has to be above the prior day's close in order for you to trade a dark-cloud cover pattern. However, did you know that some people trade this pattern with today's open above the prior day's high instead? What difference does this statement actually make to your trading strategy? For people fresh of a Forex trading course and not much experience they may decide to look for this pattern and trade it straight away without even understanding the reason why people trade this pattern this way. One of the reasons may be because the market will seem slightly more bearish if the open is above the prior day's high and then falls compared to market opening at a lower level (above the prior day's close) and then falling – unless the prior day's high and close are the same.

The point is that just because this is a reversal pattern and Forex traders around the world make money from it, it doesn't mean that it will make money for you because there is a high probability that you will trade it incorrectly. The reason that other, more experienced Forex traders make money from this type of pattern is because they have learnt to be patient throughout their Forex education. They have learnt to not just look at the pattern but look at the complete picture that surrounds that pattern. That is, analysing the chart to conclude if the market is overbought. They let the market come to them and invite them to make the trade. They never start currency trading on a notion that they will follow the market. If your technical analysis concludes that you have a selling opportunity, wait until the candle closes. Do not make assumptions on what the market will do. In my personal experience, I have identified reversal signals in both oversold and overbought markets but the price still went into the opposite direction for a number of days.

Whilst learning the hard way almost increases your level of patience, there is nothing to stop you drilling this notion inside your head even before you start your Forex education. Do not let your emotions and your ego lead your trading strategies. Be in-charge, be patient and give the Forex market the respect it deserves otherwise it will become your enemy.

By: Dragan Lukic

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