In this episode of Truth About FX, Walter digs into building your trading consistency by focusing on your execution. According to him, one of the biggest bumps most traders come across with is having the wrong mindset.
Download (Duration: 02:24 / 2.76 MB)
In This Episode:
00:27 – one word
01:05 – execution
01:54 – a long way
Announcer: Sometimes, forex trading is a wild and wooly place to be. That’s why Hugh is here, to post your questions to Walter, the naked forex guy. Hugh’s got questions and Walter’s got the answers. Here at the Truth About FX Podcast.
Hugh: Hi, Walter. Somebody wrote in and they just have one word for you: consistency. So, what do you think is the best way to build consistency?
Walter: The best way to build consistency is to focus in on whether or not you’ve done the right thing with your trading system. What happens too often is people look at, “Well, it’s a loser so it’s a bad trade because this happened.”
I don’t want you to focus on that. I want you to focus on how well are you executing your system. If you can do that, you can find consistency. Also, if you can reduce the risk per trade if you’re trading live or demo or whatever, that’s also going to help you because you’re going to focus more on the execution.
It doesn’t matter like if you’re risking .25% per trade, you’re going to probably hold on trade if it has a trailing exit and not be tempted to get out. If you’re risking 3% per trade, maybe you’re going to be tempted to get out early before your trailing exit says it’s time to get out.
These are the sorts of things that I think a lot of traders do is they gets stuck with the wrong thinking. They think that because it was a losing trade, it was a bad thing and that they needed to change something because they had a losing trade.
I want you to focus on one thing when you write, like get a journal. Write down your trades. Write down how well you thought that you executed the trade. If you can do that consistently, consistently focus in on how well did I stick to my system and not whether it’s a winner, not whether it’s a loser, not any of that stuff.
“How well did I stick to my system?” Then, you’re going to probably find that it’s going to go a long way toward finding more consistency with your trading.
Hugh: Cool. That’s awesome advice. Thanks, Walter.