Rather than rules, it is more important to keep observing charts with a calm mind and a fulfilled state of being. It is so because true learning takes place through making thousands of tiny realizations which sum up to a trading-related neural network which you can depend on during unexpected and unusual occurrences in the market. A neural network that one can depend on is an important stepping stone for skillful trading and is built best when you are focused and calm.
Why is this kind of confidence and belief in yourself in trading so important for the alchemy of turning a small depository into a bigger and bigger asset vault over the span of years and years?
Confidence is important because confidence ultimately means that you are in control of your own fate. Confidence is not something that is impossible to reach. Confidence is the result of you going through a set of various challenging and puzzling situations in life and accumulating together a complete set of skills that will put your mind at ease during the trading task at hand.
When one has a challenging trading task at hand but has not encountered analogical situations beforehand it ignites a sense of “Uhm, whichever way is fine with me because I dont know which decision is better for this trade anyway”,
or thinking: “I don’t really have an opinion”,
which means that if you dont have an opinion it is easy for you to get swayed by emotional reactions and external (often irrelevant pieces of misleading, misguiding and distracting) information.
It is important to keep in mind that a confident opinion is always better than an emotional or a random opinion.
Confidence is built up with hard work, through the help of a curious mind and belief in a higher vision, in other words having belief in that the dream of a more natural and pleasing way of living your future is totally possible as long as you do your job.
Knowledge, skills and experience add up to a fulfilled trading life.
It is easier to notice tiny clues on a chart when there is less information that distracts or is irrelevant. Secondly, the clues that one notices are also easier to remember because of a more focused and less occupied consciousness.
When you are focused and aware of a market or of what is happening on a chart you are more in control than when your focus switches back and forth between very different things.
Taking notes is a way of organizing the trading information which is relevant to us. Relevant information is the only information that we can act upon and therefore is the most valuable tool for gaining profit next to our intellectual capital inside our minds.
You just have to do the right thing.
Decide which things are the right things to do.
Do the right thing every time you trade.
Trading has to feel like it is your own. It needs to be something that you are entirely comfortable with. You cannot ride a horse or a bull very well if you are not comfortable with it yet.
For trading to be comfortable you need to know the different factors that might affect your trade and be comfortable with a market (with a currency pair).
The best way to do that is to not switch the markets you trade.
It means that you need to stay with your pairs and become extensively knowledgeable and intimate with those pairs and markets( as well as the countries and everything else that complements the information you are watching on the charts).
Trading is an individual game. It is you against the market. You cannot beat every market. Instead, you have to pick the markets that you wanna beat, beat those and claim your profits.
This is the reality of trading. Either you lead your own ship, or your pockets get pickpocketed by everybody else.
Those traders who are confident, skilled, knowledgeable, focused and aware of their own trading and the markets are the ones who have an edge. Those who dont have an edge … they get screwed by everybody else.
The FX markets are like a sea of choices. But it is your own responsibility to discover and choose the best choices for yourself and not take any bad choices whenever you stumble upon them.
When in doubt, stay out.