Most of the traders stop their trading at this stage. They simply get too tired having to constantly fight this market and also constantly losing out. They dont get the easy money which they thought they would get when they started forex trading and so many just give up and walk off.
Few of them go to the next stage of a traders life when they truly understand the need to have a good trading plan. Once they have understood this need, very few do, they start looking at 1H, 4H and daily timeframes to try and come up with strategies. They realise that these timeframes have better trading opportunities which lead to more steady trades and they finally hit upon a good strategy which works well. They would think that finally all their problems are solved and that they are on their way to riches. This is the place where they hit the second snag in their trading lives.
They can clearly see that the strategy works great but it does not fit into their mindset. Their mindset is tuned to quick money. Quick ins and outs where they can see profits or losses within 30 mins to 2 hours and so they simply cannot wait for 18 hrs or 48 hrs which the trading in high timeframes demand that you do. Its simply not in their psyche. So, they take trades in higher timeframes but get out very soon. Then sit and rue as the price continues to go in their direction. This also means that the losses become bigger and the profits become smaller ultimately leading to failure. The failure, unlike in the first case, is not because of a bad strategy, the failure is because the mind of the trader is not tuned to the strategy. He is simply not disciplined enough to wait for the right trades and wait for the trades to hit his targets. This has got a lot to do with this get-rich-quick mentality of this generation. 20 years back, returns higher than that given by banks were highly coveted. Nowadays, anything less than 20% per year is scoffed at. Greed leads to demise, demise of principles, demise of discipline and ultimately demise of your money.
Very very very few traders cross this second stage. Those rare traders are those who are diligent enough to come up with great trading plans and highly disciplined enough to stick to it , no matter what. Even if they have losing trades, even if their DD is -ve and even if they have to wait for days together for their trades to hit their targets, they will do it. They have tried and tested their strategy to know that it works and they will stick to it no matter what. This is the highest form of trading which very few people achieve. This, is the essence of swing trading.
Few of them go to the next stage of a traders life when they truly understand the need to have a good trading plan. Once they have understood this need, very few do, they start looking at 1H, 4H and daily timeframes to try and come up with strategies. They realise that these timeframes have better trading opportunities which lead to more steady trades and they finally hit upon a good strategy which works well. They would think that finally all their problems are solved and that they are on their way to riches. This is the place where they hit the second snag in their trading lives.
They can clearly see that the strategy works great but it does not fit into their mindset. Their mindset is tuned to quick money. Quick ins and outs where they can see profits or losses within 30 mins to 2 hours and so they simply cannot wait for 18 hrs or 48 hrs which the trading in high timeframes demand that you do. Its simply not in their psyche. So, they take trades in higher timeframes but get out very soon. Then sit and rue as the price continues to go in their direction. This also means that the losses become bigger and the profits become smaller ultimately leading to failure. The failure, unlike in the first case, is not because of a bad strategy, the failure is because the mind of the trader is not tuned to the strategy. He is simply not disciplined enough to wait for the right trades and wait for the trades to hit his targets. This has got a lot to do with this get-rich-quick mentality of this generation. 20 years back, returns higher than that given by banks were highly coveted. Nowadays, anything less than 20% per year is scoffed at. Greed leads to demise, demise of principles, demise of discipline and ultimately demise of your money.
Very very very few traders cross this second stage. Those rare traders are those who are diligent enough to come up with great trading plans and highly disciplined enough to stick to it , no matter what. Even if they have losing trades, even if their DD is -ve and even if they have to wait for days together for their trades to hit their targets, they will do it. They have tried and tested their strategy to know that it works and they will stick to it no matter what. This is the highest form of trading which very few people achieve. This, is the essence of swing trading.
