What comes to your mind when you hear the word minimalist? For me I think the word means less is better.
Over the years, technology have made trading with a mobile phone or a laptop possible. You no longer need to surround yourself with multiple screens and to have a television at the side in order to catch the news on CNBC or other financial news channels. All these apparatus or whatever you call it are no longer necessary for you to become a forex trader. It might actually make you look sophisticated but it doesn’t necessarily help you to become a more profitable trader.
So what do you need to trade forex in the 21st century?
With the advent of smart phones, iPads and thin as razors notebooks, we actually just need these gadgets in order to trade. Many a times, I have actually traded from my mobile phone and sometime from my iPad too. Occasionally, I would have taken a trade at home using my PC but I need some fresh air too and to do some shopping with the wifey. I believe that I cannot allow trading to dictate my life as I believe that trading is supposed to give me financial freedom and more time on my hands to do the things I like. Not to chain me to some PC or something.
As such, I will bring along my iPad and set alerts on my iPad. Yes, there are iPad apps that can allow you to set an alert when price hits a certain price level and one of the apps that I really like on my iPhone and my iPad is Trade Interceptor. It is free to use and you just need to give them an email address, a username and a password for you to start using the app. Once the alert is triggered, I will just whip out my iPad and look at the price and the chart of the pair that I am trading and where I have entered a trade. I will then make the necessary adjustments to the trade or decide there and then whether to close the trade to take my profits or at times, to protect my capital by realising a loss.
With mobile devices like the iPad and notebook, I can practically trade wherever I want. I can trade at the beach while I rest on a hammock tied to a tree. I can even trade from a Cafe like Starbucks or Coffee Bean if I want to, especially that they are providing free wireless internet in the cafe. It makes it so much easier for you to trade nowadays with the technology and internet services available.
It is important for you to understand that the ability to trade from anywhere and using the devices that I have stated, comes with a requirement. The requirement is that you master the trading strategies that you have learned and decided to adopt. Most importantly, the strategy should come so natural to you that when you spot a signal that requires an action from you to buy or to sell, you do it without hesitation.
The strategies that I teach in my forex course will allow you to identify trading opportunities. It will also allow you to be confident in your trading, so much so that you will know when to take a trade or when to stay out of the forex market. That kind of confidence does not come accidentally. It comes with lots of practice and the in depth knowledge of the when the strategy will work and when it will not. Knowing exactly the conditions of the market and the ability to use the strategy time and time again successfully comes after you have put in the hard work of understanding the forex strategy. It also means that you stick to the strategy that you have decided to follow and not jump from one trendy strategy to another.
Why Should You become a Minimalist Trader?
There are many reasons to why you should become a minimalist trader. First of all, when you get rid of all the clutter from all the unnecessary stuff that surrounds you, your mind becomes clearer and you will find yourself feeling relaxed and able to make a better decision as a trader.
I used to have a number of books and articles all strewn on my computer table where I trade. I now ensure that all these items are put away before I start trading and guess what, it helps me in my trading now as I don’t get easily distracted from all the stuff that sometimes get my attention and lead me away from what I was suppose to do in the first place. The whole minimalist philosophy is actually helping me as a trader and even when I trade, I have very few indicators on my chart and this has been pivotal in allowing me to make more money in my trading.
You would have come across some articles on forex that teach you to always be on the lookout for news and even tell you to have a television set nearby so that you will never miss a financial news again. I think that those kind of things increase the clutter and more so with all the news that bombard us from everywhere, be it your local newspaper or your local news channel.
What we really need to do is to cut back on all this clutter and make our trading simpler. You need to be able to just spend about 15 minutes on the daily or the 4 hour time frame to be able to tell whether there is a trading opportunity or not. Yes, it shouldn’t take too much of your time when deciding to take a trade or not. In my forex course, I will teach you to look out for the most important economic indicators only and to stay focused on those instead of jumping at every data that comes out hurtling at you. It is imperative that you know what kind of data is important and what kind of data is not. This in my opinion would allow you to focus only on the important stuff when trading forex hence making you a minimalist trader that really knows his stuff.
Most would agree with me that most jobs would require you to do more. Doing more is seen as being “hardworking” and more productive. This should work well with you if you are working in a factory that produces products and that you have to meet the production output based on a certain number on a daily basis. However, for an activity like trading, more doesn’t always mean better. Doing more “research” work on a certain pair or on a certain data might just leave you paralysed, yes paralysed in the sense that you become confused with all the opinions that are given to you. Many traders get confused when they overdo their research and get contradicting opinions about a certain issue pertaining to trading. This situation will not only make them confuse but they might even question their own viewpoint that they had made earlier. This lack of confidence in their own ability might impact on them taking a trade when the opportunity presents itself.
Some traders would keep on poring on the charts, going to the higher time frames and going back down to the lower time frames and in the end forcing themselves to take a trade when the chart actually presents no good opportunities. When you over- analyse the chart, it will only make you want to over trade. Also, when you force yourself to find a trading opportunity when actually there is non, you are just kidding yourself. Do not go into such a situation. You have to let the market come to you. You shouldn’t force a trade upon yourself. That is just inviting disaster and it can be the cause of a blown out account.
Scale back and Relax Yourself
If you would want to stay long in this activity of forex trading, you should learn to relax and you should learn to make money slowly. Yes, you might have seen ads that promise you 100% returns in a few days and some even dare to promise more. Let me tell you that such a thing can happen but it doesn’t happen too often and if you are to endeavour to get such results on a consistent basis, it can also lead to huge draw downs and the potential of a blown out account. Understand that traders who are looking for big wins are usually risking too much capital and most are over leveraged. When you are over leveraged in trading, you will tend to get more emotional about your trade. When your emotions get the better of you, a trader will find himself at the mercy of the market and will find himself not taking the loss when he is supposed to. Why? Because he is over leveraged and the loss has gotten too big.
If you ever find yourself sweating while the market moves a few pips up and down, you know that you are over leveraged.
As such, I would recommend that you manage your risk carefully and learn how to use leverage the right way. Using huge leverage is a double edged sword and unless you know what you are doing, I wouldn’t recommend you to use too big a leverage. In my course, I will be teaching you on the appropriate use of leverage. This is important because you are not trading forex for the short term.
Understand that you should make your capital last a life time. There are just too many traders that look for a get rich quick scheme in forex trading and leave feeling disappointed after all their money is gone. I don’t want you to fall into that category and it is my wish that all traders receiving training and advice from me stay in the game as long as they can and hopefully over their life time to make them wealthy from this pursuit.
Now that you have realised how important it is to become a minimalist trader, I believe that you are on your way thinking about how you can make your trading life a much more enjoyable one. You don’t really need to bring the whole fridge with you when you go out for a picnic, you just need to bring along just enough food so that you and the others that are with you will not go hungry when you are outside enjoying the air and the environment at the picnic sites. It is much the same for forex trading. You do not have to use the whole tool box that is presented to you to make money from the forex market. What you need is your strategy that you can use even when trading from a mobile phone or an iPad. With the strategies that I teach in my forex course, you will realise that actually, you just need to use some tools and discard the rest. Once you realise that, you will find trading much more relaxing, enjoyable and profitable.
To your Trading Success.