If you’ve been trading long enough, then you’ve likely experienced a time when you feel like you’ve lost your trading mojo.
Whether it’s because you took a long break from trading; had a string of losing trades, lost your edge in the markets, or blew your account, there will be times when you feel like you have to start from scratch or quit trading altogether.
And if you do choose to start from scratch, then you’ve only made the first step to swimming rather than sinking. It’s only the beginning of the process.
Starting over is more difficult than learning how to trade for the first time. When you start over, you’ll have to confront your mistakes, admit your failures, and let go of your ego and your old habits.
But maybe letting go is exactly the point. Just like how some tech startups have to “pivot” in order to survive, you also have to let go of your past trading processes and pursue other avenues to discover a better trader in you.
So, how can you “start over” as a forex trader? Here are a few tips:
1. “Re-learn” the forex market.The old dog would have to learn new tricks if he/she wants to successfully adapt to current environments. The key is your willingness to try new things. After all, what do you have to lose when your old tricks aren’t getting you profits anymore?
Read and try out others’ trading strategies. Talk to other traders and get their perspectives.
Learn to look at the forex market in a new way and maybe you’ll find a strategy that would give you a new, simpler, or different edge.
2. Don’t forget your strengths and weaknesses.
As you re-learn markets and explore strategies, look for opportunities where you can maximize your strengths.
A trend-trader, for example, could look at shorter time frames in times of low volatility. Meanwhile, a news trader can expand to trading currency crosses instead of just trading the majors.
Starting over doesn’t mean forgetting everything you’ve learned. If you already know your trading personality, then you’ll just have to find another strategy or system that would yield you consistent profits today.
3. Keep trading.
Just like with trading newbies, sometimes the best way to find a new edge for you is to just keep trading.
The goal is to find out which methods work and which don’t in the current trading environment. Which brings me to my next point…
4. Keep a detailed trading journal.
Since you’re back to “exploring” what works and what doesn’t, you’ll need to religiously keep track of your progress.A detailed trading journal will help you note your new observations about the markets. More importantly, it will help a lot in refining your new process.
Re-learning the forex market and all its profitable nooks and crannies is the easy part of re-discovering your edge.
The more difficult part is admitting you need change and letting go of your old habits to make room for newer, better ones.