{"id":96568,"date":"2016-10-17T13:16:51","date_gmt":"2016-10-17T17:16:51","guid":{"rendered":"http:\/\/countingpips.com\/?p=96568"},"modified":"2016-10-10T13:17:08","modified_gmt":"2016-10-10T17:17:08","slug":"learn-how-simple-slogans-help-your-trading","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/10\/learn-how-simple-slogans-help-your-trading\/","title":{"rendered":"Learn how simple slogans help your trading"},"content":{"rendered":"
October 17, 2016<\/div>
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By Admiral Markets<\/b><\/p>\n

\"pablo<\/h1>\n

Dear Traders,<\/p>\n

Preparing and implementing a
\ntrading plan<\/a> is critical when formulating a consistent approach.<\/p>\n

The trading plan helps traders reduce emotional reactions to price volatility.<\/p>\n

However, most traders notice a gap between theoretical trading and
\nactual<\/em> trading.<\/p>\n

Trade ideas may seem simple on paper but the situation can quickly become complicated when a final decision is needed.<\/p>

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Free Reports:<\/p><\/div>\r\n

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<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

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<\/div>\n

Nenad and I discuss this and more in the free course called
\nZero to Hero<\/a>, the latest of our efforts to educate the traders.<\/p>\n

\"Zero<\/a><\/p>\n

Short trading phrases help<\/h2>\n

Traders have little time to react when the markets are in full motion.<\/p>\n

Often traders feel that a quick decision is needed, because otherwise they might miss a trading opportunity.<\/p>\n

Does this sound familiar?<\/p>\n

Do you remember moments when it seemed like
\nnow or never<\/em>?<\/p>\n

Don’t be alarmed \u2013 this is a common reaction for almost all traders.<\/p>\n

Traders tend to make impulsive, reactionary decisions when the pressure is high.<\/p>\n

You can fight against this urge by following these steps:<\/p>\n

    \n
  1. recognise when internal pressure is forcing us to make a trade decision<\/li>\n
  2. use short slogans to help remember the best action as a rule of thumb<\/li>\n
  3. practice, check and know your trade plan.<\/li>\n<\/ol>\n

    For now, let’s focus on the second point.<\/p>\n

    In this article, we’ll discuss several slogans you can use when scanning the markets.<\/p>\n

    Let it center before you enter<\/h2>\n

    Traders have the urge to enter the market immediately once a trade opportunity is spotted.<\/p>\n

    In most cases, however, price tends to retrace and correct before momentum really pushes price up or down.<\/p>\n

    As a trading friend of mine always used to say, there’s no such thing as an emergency when trading the markets.<\/p>\n

    He meant to say that we should take our time evaluating the setup, plan and entry before entering a trade without proper preparation.<\/p>\n

    Don’t jump the gun or chase the market<\/h2>\n

    Jumping the gun occurs when traders enter the market before a signal arrives on their chart.<\/p>\n

    Here’s how:<\/p>\n

    …in a trader’s mind, when a signal seems to be near (a candle is almost breaking)…<\/p>\n

    …the trader loses patience and tries to beat the market by making an early entry.<\/p>\n

    The problem is, you enter the market but the signal never appears.<\/p>\n

    It’s tempting to ‘push the button’ and enter the setup earlier than planned.<\/p>\n

    However, traders need the discipline to wait for the actual signal to appear on the chart.<\/p>\n

    Remember to always wait for your trading plan to materialise and never assume something is bound to happen.<\/p>\n

    The market acts independently.<\/p>\n

    It follows the
    \n    path of least resistance<\/a> but not your vision of how price should<\/em> move.<\/p>\n

    That same goes for entering the market too late, i.e. chasing the market.<\/p>\n

    Once the setup is gone, don’t justify a late entry and just let it go.<\/p>\n

    The market will always be there<\/h2>\n

    Once you
    \ndo<\/em> miss a setup, remember that the market will not suddenly disappear.<\/p>\n

    Yes, you may have missed out on some opportunities\u2026<\/p>\n

    …but new opportunities will definitely arrive in their place.<\/p>\n

    It is way more beneficial to keep focused on potential new setups rather than get distracted by the past.<\/p>\n

    Or in other words, better money missed than money lost.<\/p>\n

    \"pablo<\/h2>\n

    Find a wide open space<\/h2>\n

    When analysing the markets, it’s always beneficial to remember that not all setups are worth the trouble.<\/p>\n

    There is a maximum number of daily decisions our brain can handle before it experiences decision fatigue.<\/p>\n

    Traders need to scan the charts and focus on the financial instrument with the best potential for the day, week or month.<\/p>\n

    What do I consider the best potential when analysing the charts?<\/p>\n

    I prefer to avoid trading in large congestions and focus on trading the momentum in wide open spaces.<\/p>\n

    Most often, this occurs when there are less support and resistance levels standing in the way, which is what I call
    \nspace<\/em>…<\/p>\n

    My motto is, “let the
    \n    market lead<\/a> and I will follow”.<\/p>\n

    Other traders say something similar: “the markets speak and traders listen.”<\/p>\n