3 Ideas to Expand Your Forex Trading Skills

If you want to become a big baller in the unforgiving world of forex trading, you’re gonna need more than one or two trading tricks up your sleeve. You not only have to know your strategies like the back of your hand, but you also have to be aware of other approaches that could land you pips.

In order to sustain your edge, you need to come up with fresh ideas. In trading, this could take the form of diversifying your skills. Don’t worry, you don’t have to drift too far from the skills that you already have. Sometimes all you need are a few tweaks in your habits to find new opportunities.

Here are three ideas to get you started:

1. Look at other time frames

Just because the School of Pipsology’s personality quizzes tell you that you’re a day trader doesn’t mean that you have to stick to the shorter time frames all the time. Some hard core day traders I know find trades by checking out longer time frames for overall direction. Meanwhile, swing and position traders usually learn about significant levels and adding positions from day trading forex techniques.

2. Try trading other pairs

Think you’ve mastered the behavior of a currency? Why not step it up by trading it against other currencies? For example, if you’re the AUD/USD expert among your peers, you can try looking at AUD/JPY, EUR/AUD, or even other comdoll pairs for trade setups. This way you’re maximizing your ability to predict the Aussie’s price action, but your trade ideas aren’t limited to a couple of currency pairs.

3. Be open to other strategies

Expanding your trading skills ultimately boils down to you being open to new strategies. Again, you don’t have to veer far from the skills that you already have.

If you’re a system trader and you can spot confluences even in your sleep, then it wouldn’t hurt to try out other systems that have similar concepts. Discretionary traders also have a lot of room for new ideas and trading opportunities. Think you’re good at spotting trends? Level it up by using the STA strategy or the HLHB Trend-Catcher system!

If you’re used to trading ranges and you know when they’re about to break out, then maybe you could give breakout trading a shot. You can also play around with other skills like good position sizing, trading fakeouts, and even trading a particular indicator.

The point of the exercise is for you to acquire new weapons in your trading arsenal. Having an edge in trading is always a good thing, but you need to develop fresh sources of edge to sustain your advantage.

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  • Muneef

    Nice thoughts dear Dr. But, I have a question in mind. It has happened to me but as i am not a very experienced trader, i would rather like you to ask. I have felt that if one uses,say, two or three systems, then defiantly every system will have its own approach although they are similar in concepts, so as a result one gets confused about implementing a particular one at any given instant. So will it not be better to take only one approach and stick to your trading idea whatever it may be rather than jumping brain around and getting confused?

    • Dr. Pipslow

      Good question! I struggle with this issue from time to time as well, but I think it boils down to being in tune with the market environment and being able to identify which strategy might work best in that particular situation. I also work with a few different approaches every now and then, and sometimes the strategy I implement might not be the most appropriate one at times so I continuously record the results and keep track of what I could’ve done better. Hope this helps!

      • Muneef

        Hmmm. good. What kind of information do you record for the sake of future planning. I hope this will help me and many other not so experienced traders help in maintaining a trading journal which records on some tried and tested lines.

        • Dr. Pipslow

          Apart from the usual metrics (technical and fundamental reasoning, entry levels, stop loss, profit target, % risk, and projected R:R), I also record the decisions and thoughts I have in the middle of the trade that lead me to add to my position or cut my losses. I also keep track of expectancy, win ratio, and drawdowns as I go along.

          • Muneef

            That seems very helpful regarding the record keeping of emotions and thoughts. I will sure try it. Thanks Dr. i appreciate that.

          • Dr. Pipslow

            Anytime, Muneef! See you around!

  • Another GREAT post. Without a doubt keeping an opened mind and a level head will prevail most of the time. It does hurt to be fluid like water. Often times we bring excess “baggage” into our trading and it hurts the decision making process. Having a system is fantastic and you’ll need that, especially in the early years of one’s Forex Trading endeavors, and once you know your system, have adjusted accordingly, you can make the necessary adjustments or tweaks. Markets are always evolving and as a Forex Trader you should too. Elevate your game and that includes sharpening your mental or psychological mindset as well. Thanks Dr. Pipslow

    • Dr. Pipslow

      Thanks for the positive feedback on my entry! I do enjoy trading systems myself but I like having a discretionary aspect as well, which reminds me to focus on developing the right trading psychology to deal with the ups and downs. Looking forward to hearing more from you, see you around!