Did you still feel the pain of last year’s market lessons as you walked into your trading station like a contestant in the Squid Game, thinking, “I’VE PLAYED THESE GAMES BEFORE?”
If you’ve been in the forex market long enough, you’ve undoubtedly experienced times when you thought your trading magic had packed up and gone on a lengthy vacation. There will be moments when you feel like you have to start over or give up trading completely, whether it’s because you took a long break, had a run of losing trades, lost your edge in the markets, or blew your account. Additionally, you’ve only taken the first step toward success rather than failure if you decide to start from fresh. The process is just getting started. Beginning over is more difficult than learning how to trade for the first time. When you start anew, you must address your faults, accept your failings, and let go of your ego and previous habits. But sometimes letting go is precisely the purpose. Just like some software businesses must “pivot” to survive, you must also abandon your previous trading procedures and follow new routes to uncover a better trader within yourself.
What are the steps to “start over” as a Forex trader? Here are some tips:
1. “Re-learn” the Forex market.
If the aging dog is to successfully adjust to today’s circumstances, he or she must learn new tricks. The trick is to be willing to try new things. What do you have to lose if your old tricks are no longer profitable? Read and try out other traders’ strategies. Talk to other traders to gain their views. Learn to look at the forex market from a new perspective, and you may discover a method that will provide you with a new, simpler, or distinct advantage.
2. Identify your strengths and shortcomings.
As you re-learn markets and explore methods, look for possibilities to leverage your abilities. In periods of low volatility, a trend trader, for example, may choose shorter time horizons. Meanwhile, a news trader can diversify his or her portfolio by trading currency crosses in addition to the majors.
Starting afresh does not imply forgetting everything you have learned. If you already know your trading personality, all you need to do is locate another method or system that will generate consistent profits today.
3. Continue trading with deliberate practice.
Just like with trading beginners, sometimes the greatest method to locate a fresh edge for yourself is to simply keep trading. Trade frequently and with deliberate practice. If you are hesitant to risk real money on a new strategy, trade on a demo account. The purpose is to determine which approaches work and which don’t in the current trading environment. This gets me to my next point.
4. Keep a detailed trade log.
Because you’re back to “exploring” what works and what doesn’t, you’ll need to keep meticulous records of your progress. A complete trading journal will allow you to record your latest market observations. More importantly, it will be quite beneficial in refining your new procedure. Re-learning the forex market and all of its valuable nooks and crannies is the simple part of regaining your edge. The more difficult aspect is accepting that you need to change and letting go of old behaviors to create a way for newer, healthier ones.
