The basic mistake many beginner Forex traders make is forgetting to evaluate the type of market they are working with and adjust their approach accordingly.
US Navy SEALs and Army Rangers are trained to perform missions in many different types of terrain: deserts, swamps, jungles, tundra, oceans, or Nikko’s castle.
Without this training, their effectiveness will be limited: they will struggle to survive in unfamiliar terrain because their skills will not work (imagine a soldier in white winter camouflage, trying to hide in a dark green forest).
The first lesson they learn is how to Assessing their surroundings And think about tactics and strategies that fit their skills and that will work in their current position.
The same applies to new traders. Instead of focusing on geographical environments, you need to pay attention to the market environments you are in, and use the appropriate methods for where you are located.
Ultimately, markets are constantly changing, and what moves prices today, this week, or this year, will be different next year, next week, or even tomorrow.
In the world of Forex trading, you need to be flexible and adaptable. You need to adapt to changing trading environments, whether volatile markets or trending markets.
You should be able to quickly change your bias about price direction as new information (such as economic reports and political events) emerges.
Short-term memory and lack of stubbornness lead to flexibility in trading. Short-term memory means that you start each trade afresh without any preconceived notions about what will lead to success or failure.
Start from scratch. Being non-stubborn means you are open to change and changing your mind as necessary.
Flexibility in adaptation leads to survival not only in nature, but also in markets.
A single animal cannot be stronger than the forces of nature, just as a single merchant cannot be stronger than all the forces gathered in the market.
Do not revisit yesterday’s trades during today’s trading session. The decisions or opinions you made yesterday that led to success yesterday may lead to failure today.
Never think that you can stick to your old views and opinions. When the market tells you that you are wrong, you will lose every time.
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