How To Pick The Best Forex Trading Style
In this Montreal Forex trading vlog, I go to the monthly Montreal Traders Meetup to meet other successful traders. On the next day, I discuss an important principle in regards to the best trading Forex style. Vlog #187.
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The truth about the best Forex trading style is that you MUST pick what you are most likely to see success with. If you do not have the time required to day trade, don't do it. Even though your returns might be higher at first, what truly matters is whether you're likely to sustain it in the long-run.
Resources Mentioned
Episode 089: The 3 Pillars of Your Success in Trading
Video Transcript
So that event is taking place at the same restaurant, same room, almost the same people. That is a routine! What's the topic tonight?
What's the topic tonight? The importance of trading routines.
The importance of trading routines. What a coincidence!
“The project here… this is the diary of my weekly swing trading activities. And the best term you want to keep it for, like I said, at least a month or maybe a quarter.”
So I didn't feel like I wanted to record the whole event yesterday, but for now…take-away time!
I think this is gonna be a great time for me to talk about the key aspect I heard yesterday and that is the difference between trading a style you can trade versus a style that you cannot trade.
One of the traders yesterday was mentioning the fact that he found it hard to trade and work at the same time and I think it's very true. I find it hard myself to trade and work on different things at the same time, it's not easy.
One of the things that become really really important at this point is to find a style that works for you and I think many people make the mistake of using a style that is not for them.
It's gonna lead to more profit in the beginning but eventually they're gonna crash and a perfect example is the trader who tries to day trade when his style is really swing trading: probably at the beginning there's going to be a bump in profit and then it's going to kind of decrease a little bit and the return are always going to be below the optimal level.
And that is something most people don't think about. All they think about is the return and making money, but they don't think about whether they're going to be able to sustain that thing over the long-run and that is very very crucial.
At the opposite side if you decide to swing trade while you're a good day trader chances are your returns are going to be below the optimal level again and of course you can force yourself to like have a different style and try different things but eventually, it's gonna catch up and you're not gonna achieve what you could achieve in trading.
And if you haven't found your style yet, I definitely recommend you listen to episode 89 of the podcast; it's exactly on the topic.
If you are more the type of trader who likes to be in the action and make quick moves, well day trading might be more for you but if you are the type of trader who prefers to stay calm, you're kind of more analytical, then swing trading might be better for you.
And don't forget that unless you change completely your personality, you're always going to be achieving below-optimal result if you have the wrong style. So that being said, I'll finish it here for the video today; hope you guys liked it.
Comment below with your thoughts, your question as always. There's one more video every single day so make sure you subscribe if you want to see more like this and I will see you guys tomorrow. Ciao!
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