Learning How To Become A Consistently Profitable Trader
Now let’s talk about learning in general and how to become a consistently profitable trader.
The act of learning is a very complex process by which the learner comes to the table with his strengths and weaknesses as a learner, is exposed to new information, is forced to make connections between old and new information, and then must act upon it.
This very complex process that human beings enter to learn anything, is complicated further by twos factor in trading.
- One factor is time which impacts how long it takes to really “see” what is unfolding on a chart (price action). Meaning how long it takes for a trader to develop the skill and continuously enhance the skill of reading price action as it unfolds moment to moment.
- The second factor is speed which impacts the clarity of what we see unfolding on a chart (price action).
Consequently, as a trader it is important to realize that no matter how experienced you may be learning never stops. In order to continuously have an edge on the market and continuously make money in the market, a trader is constantly in a state of “learning”.
Specifically, when a trader is engaged in the market and interacting with price action as it unfolds he experiences the same as if he is learning completely new information. If the trader understands the prior concept then understanding that being in that state of constant learning of new information every second of every trading session puts the trader in a very vulnerable position. Further, complicating the trader’s experience is the fact that the “learning” spoken of here occurs in split seconds in order to be able to make intraday trading decisions.
The question is, what can we do as traders to circumvent the trader’s dilemma explained prior?
- First recognize when we come to our charts we enter a constant state of learning new information in seconds and minutes.
- Second, come to your charts having done appropriate homework.
- Have all of the proper trading tools and Best Forex Software that suite your trading style.
For example, know your levels of support and resistance and identify the direction of the overall trend or lack of a trend (consolidation). Then make sure you have kept up on your self-reflection in your trading journal.
You should have a growing list of actions you took while trading that worked and things that did not work. Last, continuously seek to hone your skill to act upon the information unfolding on your charts by being so engaged that what you learn as you trade can be acted upon appropriately because you will find that history on charts is much like history in the world……it repeats itself.
Profitable trading to all!
FxST Education Specialist
Dr. Debbie Badawi’s formal education, training, and career is in the field of education. Ten years ago, upon an early retirement, she entered the world of trading equities and then found her passion in day trading and swing trading the Forex Market. Although she trades various currency pairs, she spends much of her trading focus on the EUR/USD. In addition to trading, Debbie mentors other traders, works with the team at FXST, and runs her educational consulting business where parents find educational solutions for their children. When asked what’s next or what’s Debbie’s future? Debbie smiles and precisely says, “ a simple life comforted by a six figure income and a financially free retirement.”