Its always great to hear from our traders and our traders speak to us regularly. One of the most common questions that we get is – How can I pass my evaluation easier?We have put together this blog series to give you some ideas on what the traders who are passing evaluations are doing.
MAKE SURE YOU HAVE A TRADING EDGE/STRATEGY
Trading in the FOREX, Metals or CFD’s markets is not gambling. Some people might think it is, some people even treat it as if it is. But it is not. There is a plethora of strategies out there that hold an edge over 50% in trading. Generally, the reason that those strategies do not hold up the tests of time are the user and not the strategy.
If you execute your strategy perfectly 100% of the time and you hold an edge over 50% you should come out of the market in profit. Obviously, that’s easy to say, there are hundreds of external factors that can affect a trader’s ability to execute their strategy effectively.
However, not having an edge or strategy turns trading into gambling.
Find a strategy that fits your trading personality.
It is most important you have a strategy when you are going to trade professionally. But long term its even more important that you find a strategy that makes you feel comfortable and confident with. Some people are built to be in the market regularly and some people are built to be in the market rarely. Either way, it is important to have some strategy and to execute that strategy accurately so that the results can come. As in our other tips blog you should keep track of your trading strategy via your trading journal. Hopefully, that increases the probability of you following the strategy itself.
TEST, TEST AND TEST AGAIN…. ALWAYS BE TESTING
Even when you have found the strategy that fits your personality and are comfortable and confident with it, it is important to maintain testing to improve your trading. Markets can change and you must adapt with the markets. By testing during periods when you are not in the market, you increase your chances of identify changes in the market and improving the strategy that you are already comfortable with. Range based strategies are not the same as trend-based strategies, however both can work in each’s respective market types if there has been enough testing done.
Always work on your craft and look to improve performance moving forward.
DO NOT STRATEGY FLIP
No one can win all the time. Sometimes losing streaks happen. If a strategy is going to fail, it should fail because the strategy failed not because you failed to execute it. Give your strategy time to work out, obey its rules and maintain it. If it does truly fail, then you know its no good. However, if you change strategy quickly just because of a few losses then you will never really know whether it was the strategy that failed and are likely to repeat the same mistake again.
We see strategy flipping all the time in our funded My Forex Funds accounts. Our interpretation of what happens is that a user experiences a small loss, nothing too scary, and then panics. From that point on they start trading a different strategy aggressively and the losses grow until eventually they lose the account.
Consistency of strategy will give you peace of mind as to what caused the result. Stay on course with your strategy and allow it to speak for itself.
Stay calm, stay consistent, be healthy and be happy.
The MFF Team are always here for you.