October 28th, 2009

The Power of Observation

Written by Kirk | 2 Comments

Topics: Emotions, Inside The Trader's Mind, Mentor's Corner, The Disciplined Forex Trader, Trading Strategies

One of the basic skills a trader needs to possess or develop is the power of observation.
They need to become students of observation. This skill of observing things does not
just apply when you are trading and looking at charts it will carry over in to the rest
of your life.

You might say I am looking at charts, the indicators, price movement… what else should
I be observing? Let’s make a list of the things you need to look at.

How am I feeling?
What is my emotional state?
What is my self-talk before, and after the trade?
What is my thinking?
What patterns did I observe?
Did I follow my rules?
Did I hesitate or just take the trade when I saw the signals.

Once you get use to different things you need to keep track it will come automatic
and you will not have to think about it. Your goal is to become a mechanical trader
see the signals enter the trade, manage the trade, and exit the trade. Look for the
next trade and repeat the process.

Be aware of your environment and what is going on inside and out side of you.

Trade Good,

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Comments

2 Responses to “The Power of Observation”

  1. The best forex trading System on October 29th, 2009 7:21 am

    Hey there, Nice tips …

  2. Vinod on November 2nd, 2009 7:56 am

    Simple but effective tips to follow.

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