Did you find yourself arriving at the trading desk with the zeal of a Squid Game contestant, convinced you’re familiar with the rules, only to be haunted by last year’s market lessons?
If you’ve been in the forex world long enough, there’s a good chance you’ve encountered times where it seemed like your trading skills went on an unannounced sabbatical.
Whether you’ve taken an extended break, been hit by a series of losses, lost your market edge, or even blown your account, there will be moments when it feels like you need to start the journey all over or consider stepping away from trading entirely.
Opting to start again is just one step—albeit a crucial one—towards swimming rather than sinking. It marks the beginning of what can be a challenging process.
Starting over can feel more daunting than your first trading experiences.
At this stage, you’ll have to confront your previous mistakes, acknowledge your failures, and shed the weight of your ego and any old habits that aren’t serving you.
However, there’s a silver lining in letting go. Just as startups may have to "pivot" to thrive, letting go of outdated trading methods can open doors to becoming a better trader.
So, how does one "start over" in the forex world? Here are a few suggestions:
- “Re-learn” the Forex Market.
If you want to thrive in today’s conditions, you’ll need to pick up some new skills. Embrace the chance to try new strategies. After all, if the old ones aren’t working, what’s there to lose?
Explore strategies from other traders, engage in discussions, and gain fresh perspectives. A renewed approach might just unveil a strategy that provides you with a refined or entirely different edge.
- Evaluate Your Strengths and Weaknesses.
As you dive back into learning and strategizing, seek out opportunities to maximize your inherent strengths.
For instance, a trend-trader might focus on shorter time frames during periods of low volatility. A news trader could consider trading currency crosses instead of sticking solely to the major pairs.
Starting anew doesn’t mean discarding all your previous knowledge. If you’re aware of your trading personality, it’s about identifying a new strategy or system that promises consistent profits today.
- Persist with Deliberate Practice.
Sometimes, like a newcomer, the route to finding your new edge is to keep at it.
Engage in frequent practice with purpose. If you’re hesitant about risking real money on unfamiliar strategies, practice on demo accounts.
Your aim is to discern which strategies work and which falter in the current market environment. That leads us to the next point…
- Maintain a Comprehensive Trading Journal.
As you’re delving into what works, keeping meticulous notes is crucial.
A detailed trading journal can document your insights into the market. More significantly, it will be instrumental in refining your new approach.
Rediscovering an edge in the forex market means adopting newer, more effective habits while acknowledging the necessity for change and moving beyond outdated habits.
