I received an email from Lourdes who wrote:
I have traded Forex since January 2012 and have taken a loss. I use Parabolic SAR (stop and reverse), the Stochastic Oscillator, Moving Average Convergence/Divergence (MACD), Bollinger bands and Average True Range (ATR). Could you please advise me on what I am lacking?
First and most importantly, do you have a trading plan in place to consistently execute trades based on your criteria? If you are not sure what to include in a trading plan, you can refer to my reply in the post “Question from Baichen: As a new trader, how do I craft a trading plan and start my first trade?” dated 18 October.
When it comes to trading, it is not so much about indicators and how to use them. It is about executing trades consistently without letting your emotions get in the way when you enter and exit trades. You cannot control the market; you only control how and when you execute trade positions. To that end, you need to have your trading plan in place to minimize the temptation to take trades driven by emotions rather than your trading criteria.
There are 3 keys to successful trading:
- Money Management
- State of Mind
You may refer to my reply in the post “Question from Mayette Azucena: What are the basic skills in Forex trading?” dated 24 July 2012.
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