We tend to approach the markets with a set of blinkers on. For example, try listening to one of your friends talk about their trades. You can often pick up in what they say the beliefs they hold, and the premises from which they operate. Sometimes it can seem like they are talking in a foreign language!
It’s because we all construct models about how the market works, to help us make decisions in such a tense and complex environment. But once we have our model, we tend to ignore the things that don’t fit into it neatly. Or we just start ignoring concepts we don’t feel we need. In the long run, this can be a huge mistake.
Perhaps we ignore a concept because it didn’t work for us in the past: in that case, did it truly not work, or did we not understand it fully?, Perhaps we ignore it because we hear about it so often that it has lost any real meaning – think “risk management”. Have you really grasped it on a deep level, or does it just the term just wash over because you have heard it so much?
What I would encourage you to do is be more conscious about what you choose to ignore and why. Try not to ignore things as a matter of fact. Open your creative mind, and start to notice what’s going on around you, outside of your beliefs, blinkers and preconceptions about what you think works.
Despite its analytical front, trading has a large creative component, wherein you need to be open to what the market is telling you. You need to be aware of what you are doing – right or wrong. It’s only by paying attention that you can actually learn what you need in order to grow – otherwise, you get stuck in an endless loop of doing the same thing and producing the same results.
About the Author
Sam Eder is a currency trader and author of the Definitive Guide to Developing a Winning Forex Trading System and the Advanced Forex Course for Smart Traders. He is a part owner of Forex Signal Provider fxrenew.com (You can get a free trial). If you like Sam’s writing you can subscribe to his newsletter for free.