One of the things that you will never hear someone say in the trading room is “get in now”. Interestingly enough, that is also the singular phrase that new traders desire to hear most.
Guess what? No one is ever going to tell you when the right moment is. Partially because the only people that know with certainty are the Market Makers and also because it is a decision that you have to learn to make on your own.
I will, however, offer you the the next best thing. I’ve had to process the same information as you, and with this three part article series I’ll help you make sense of it all. I am new at trading but I am darn good at learning and I’ll help you identify some of the checkpoints and victories that will be your first indications that you are “getting the hang of it.” Essentially, I’ll help you recognize when you’ve learned a valuable skill.
Before we start, I should tell you that all learning starts at the same place. Identification. Identifying is the first step in anything. If you can identify something then you can learn it (or even avoid it). Take a moment to think about it. It is a truism of life.
Learn to Identify When Something is Happening
When a person first starts trading none of it makes sense. It is a jumble of candles and colors and lines and dots and zig-zags in every direction that, as far as you know, can turn at any second. As overwhelming as it is, the first step in the process is simple. You just have to be able to identify the areas that something is happening. At this stage it doesn’t matter if you understand what is happening, only that it is a point of interest.
I’ll give you an example. When I was a 6 week trader I e-mailed my instructor about a middle-of-the-day losing trade that I took on my own. Lo and behold he also took the same trade, however, (as profitable traders have the tendency to do) he took it in the right direction and made 23 pips.
Imagine that out of the 288 5-minute candles that form in a day, a beginner of less than 2 months was able to identify something at the same point as one of her instructors? What a victory!
New Traders, when that occasion happens to you, celebrate. You deserve it!
In the next article I’ll tell you about another breakthrough moment. The moment that you begin to understand risk and entry. Join me in the upcoming week for the second article in this series entitled, “Ohhh! That’s What That Means….”
Fx365i / Smart Money Profile Student & Aspiring Forex Trader