All this talk about self-coaching and classic pieces of advice got me thinking about learning from everyday forex traders. After all, just because retail traders don’t play around with gazillions of dollars doesn’t mean they don’t have a helpful nugget or two to share to forex newbies.
Ananais, one of our lovely moderators, had interviewed some of the most respected and experienced traders in the BabyPips.com community. I thought I’d compile some of their best answers in the hopes of learning from them. After all, the learning never stops here at BabyPips.com!
Let’s have a quick read through of the trading tips and tricks that our forum community members (both active and inactive) have imparted in their interviews:
1. Chris Capre
“Most developing and struggling traders are making two key mistakes:
1) They fail to engage in a structured learning process
2) They treat the learning process as ‘information based’, not ‘skill-based’
What I mean by the latter, is you’ll hear the following mantra repeated a lot, the ‘you can learn everything on the internet for free’ mantra. This fails to understand what the learning process is about.
To become a successful trader (or piano player, or doctor, or mechanic, or martial artist), you cannot just take in ‘information’.
If information alone were the key to success, then every person who pirates trading material would be successful traders. Everyone who has taken all the apparent necessary information off the internet would be trading successfully now. Yet they are not, because the equation is reversed.
Trading has to be a ‘skill-based’ learning process. You have to properly train, and build your trading skill-set to trade successfully.”
“Pay attention to detail when placing orders. Be adaptable. If you can’t adapt then the market will eat you alive. “
“New traders think they learn how to trade in demo accounts which is one reason why they end up failing.
It is like thinking you can become a pro-golf player while playing a golf simulation in your living room on your favorite gaming console by yourself. You may master the video game, but you are not one inch closer to being a golf player and as soon as you hit the golf course you will fail as expected.”
“Even a donkey can place a winning trade, but it takes a lot more to do it consistently.”
5. Mr. Gone
“Don’t believe in anything that trading industry tells you to do. Forget all economic theories – it is all crap. Forget what you have learned in school (except basic math). Forget what mama told you. Failing is the only way to prosper.”
“Don’t try to reinvent the wheel. Learn to crawl first, then walk, then run, then sprint. Make a plan based on your situation, then work your plan to reach your goals.”
“Start with a demo account and learn to trade safely first. It is better to burn out 10k of virtual money on a crazy system or impulsive trades (or even one mega-trade gone horribly wrong) than to blow out your first live account when you are still too emotionally involved in your trading or still ‘trading from the hip.’”
“It takes at least 10 years to train a good surgeon, what makes you think that you will be a pro after six months? It’s not gonna happen.”
“Don’t marry a trade for too long, don’t overtrade, don’t put on a trade because you are bored, and try to keep abreast of all the fundamentals.”
“DO YOUR OWN HOMEWORK. Take everything with a grain of salt and check everything for yourself. Basically doing all the good work you can to increase your odds of success. That’s all you can really do in this game, stack as many edges big or small in your corner as you can.”
What about you? What’s the best forex trading advice that you have heard or read? Do you have anything to share for fellow forex traders out there?
For those who are cited above and are reading this piece, do you have anything to add to your advice? Let us know by posting a comment or starting a discussion below!