Psychology of Trading Forex

What is the most effective, simple, and profitable forex trading strategy? It depends on you. 

Today I want to talk about creating a strategy based on your mindset. 

I see that many beginning traders spend countless hours looking for the most "money-making system." They take tons of entries, stop loss, take profit methods, and they can't seem to stick with one. 

The problem is that they have never diagnosed themselves, and thought about what system is relevant to their personality. So let's think about this. Today I will go through one part of creating a system, choosing a time frame. If I see interest, I will continue with entry, stop loss, and take profit strategies also.

Choosing your time frame

Are you patient? 

Or do you need instant results?

Maybe you like to think about things? 

Maybe you don't want to constantly be checking the market?

So if you are a quick thinking, action seeking type, you should probably be looking at the 1 hour time frame and less. 

If you are a patient chess player, the daily and weekly chart is where you should begin. 

Expanding your Comfort Zone

After you think about what is fitting to your personality, I want you to think about where that is the most ideal way to take money. For example, if you are impatient, and need instant results, and you would normally stick with a 5 minute time frame strategy, take a moment to think about the benefits of expanding your comfort zone and including a larger time frame. 

I will quote Larry Williams, "the more time you give it, the more money you will make." Markets do take time to develop

So these are just a few ideas to get you started, let me know if this was helpful, and what I could expand on.

-Zack Tokar