ADVANCE FOREX EDUCATION: PART FIVE: EXTERNAL FACTORS CAN RUIN YOUR STRATEGY:

ADVANCE FOREX EDUCATION: PART FIVE: EXTERNAL FACTORS CAN RUIN YOUR STRATEGY:

You must be conscious of your environment and the things that can likely distract you during trading time. The human factor is the most challenging of all the problems associated with forex trading. Make sure that those who have nothing to do with your trading strategy are not around you when you are trading. You will be shocked when somebody you are even trying to teach about forex trading and your strategy, will be telling you what to do, when to close the trade or when to take profit. Do not allow anyone to put you under any pressure, no matter how close you are to each other.

FOREX BROKERS CAN KILL YOUR AMBITION:

Choosing the right forex broker is as important as developing your strategy. Studies have shown that no matter how good your strategy is, a bad forex broker could ruin you and the strategy. Before you appreciate your strategy and its viability, you must have a good forex broker with the right trading platform to test run it. Whatever the strategy is, using a bad forex broker, will jeopardize your chance of a successful test run. Check the forex broker reviews on the forex peace army website and consider what those who had used them have to say.

You will then be in a position to choose a good one for yourself. Do not allow sentiment to form the basis of your choice, otherwise, you will make a mistake in your choice. Do not say because the forex platform is compatible with your smart phone or PC, that it is a good forex broker. It goes beyond those kinds of sentiments. I can confidently say the forexpeacearmy website is the best in the whole world when it comes to providing free and qualitative forex services. You will find the forex broker reviews very educative and inspiring.

THE CALENDAR OF EVENTS CAN AFFECT YOUR STRATEGY:

What essentially drive market prices is the element of surprise and other factors and to position yourself for a good report is to make sure you use a calendar of events that is accurate and straight to the point. This is where CASHBACKFOREX calendar of events comes in handy. It is not only accurate, it has been proven to be the best in the world, in terms of the expectations and revisions. For a successful news trading business, you need to know the exact market expectations or consensus figures, to be able to assess the level of impact likely to be generated by the released economic report. My greatest surprise was when I subscribed to a News Wire Service, I discovered that the figures as contained in CASHBACKFOREX calendar of economic events are exactly the figures the News Wires Services are using and it is what the markets generally react to. So, having a good calendar of events that is accurate and precise, is as important as your strategy itself, because doing the wrong thing can "finish" your hard labour in a few seconds.

Imagine a situation where the market expectation of the US GDP is different from one calendar to the other, what do you do? Do you abandon your trading strategy? You must full back on the most accurate and base your trading decisions on that, which is always correct and straight forward.

THE CURRENCY PAIRS YOU SELECT FOR TRADING CAN FAIL YOU:

Have you thought of the currency pairs you select for trading? Using the default currency pairs, does not guarantee you a good trade. So many factors can affect them, revisions and the mood of the market is one of such factors. I have dealt with most of these things in the previous parts of advance forex education.

Trading the UK GDP for example, does not necessarily mean the cable, GBPUSD, will be the most appropriate currency pair to use for the trade. Just the same way, the USDJPY may not guarantee a good trade on Japanese reports. These are the factors that make forex trading so challenging and rigorous. But when you are able to master all the techniques, trading becomes quite pleasurable.

 

YOUR INTERNET SERVICE PROVIDER (ISP)CAN MAKE TRADING A NIGHTMARE

The internet service provider cam make trading very stressful and frustrating, especially in developing economies as mine. I have used all the available internet service providers in my country in an attempt to find a "safe haven" all to no avail. The two I am currently managing are presumably the best in the country and their services still fluctuate. At times, I had to close my trading platform to in order to be able to post my live trades, because, to open three pages at a time is like forcing a horse to drink water. Make sure your internet connection is quite okay, because it can determine the way your order is executed and how fast.

THE HUMAN ANGLE IS ALSO A FACTOR TO WATCH OUT FOR:

 

One thing you should avoid at all cost, is by allowing a second opinion to judge the way you trade or apply your strategy.

Some time last year, that is 2013, I was showing my personal assistant and one other staff, what a real forex trading environment looks like, the live trading platform and the lot size, with the position I was holding, when suddenly they were “shouting” close the trade now and take profit, and this was because the price action was coming against me. They do not understand what forex trading is all about. Price action in forex trading is not a one-way traffic that you can just follow. There must be consolidations, pullbacks and retracements. If you are not careful, your attention will be shifted to other things in focus at the moment, because you have lost your own focus. It is advisable to shut out every member of your household, especially those who are likely to disturb or influence your trading decisions.

HUMAN FACTORS CAN BE AN ADVANTAGE TO DRIVE A PROCESS:

 

The same human factor that may distract you during trading can be useful in driving the process of taking advantage of the outcome of your strategy. Whether the aim is for personal or public use.

Whether the service you render is free or not, you need human factor to drive the process. Just learn from these two case scenarios:

I joined the forexpeacearmy forum in November, 2007 and went away later for "SABBATICAL" some time in 2008, to enable me carry out my research work on forex trading. I received several emails from the administrator to come back to the forum prior to my rejoining the forum in October, 23rd of 2014. In spite of the fact that they , forexpeacearmy render free forex services, they recognize the fact that they still need human factor to drive the entire process. They know whatever little contributions I give will impact on some people positively.

The same scenario played itself out, when the board and management of CASHBACKFOREX decided to merge or fuse FOREXRAZOR into CASHBACKFOREX, all the forum threads created after September, 2014, were "lost" so to say in their data base, and mine happens to fall into this category, because it was created in October, 24th or so, but to my greatest surprise, their site administrator/ manager, one Mr Denis sent me an email, telling me about the merger and the problems they were encountering in restoring my forum thread and probably some others. He went further to appeal to me for patience because the problem would take about three days to fix. He went further again to suggest the transfer of my thread to the General Trading Discussion and wanted to know if I would still like to continue my posts. I was shocked when he sent me an email the following day, intimating me of the readiness of my forum thread instead of waiting for three days and to wish me more viewership. I was not too surprised though because, whatever the service you render, there are a few people who know you need the human factor to drive the process. Of all the paid charting services I have seen and used in the past, they are not up to 10% of the quality and material content available in the free ones provided by CASHBACKFOREX, especially the economic data impact analyzer. It is a revolutionary tool for forex traders and I am quite happy I told the site manager how I benefited from its use in the later stage of my research work. These are some of the ways external factors can be useful.

Do not seek any opinions about your strategy, unless you are test running it. Nobody will understand your strategy more than yourself and so, be wary of any interference. Let me share this with you also:

I decided to introduce my children, four of them to forex trading just last week,including my daughter inlaw and son inlaw, precisely on Sunday 14^th December, 2014. I made sure my posts were sent to them through emails so that they could trade my live trade calls on demo platforms, as a way of mastering the act of placing orders. Same to my wife. Although three of them are in the medical profession, only my second daughter is in mass communication, I told them to learn forex trading in order to acquire financial freedoms. But my instinct is telling me that my son inlaw, who is business inclined and my daughter inlaw, who is a lawyer, are better placed to master the strategy than the rest. The life in Florida, US will affect my second daughter's learning process if care is not taken. They can afford to invest and live in any country of their choice. But is there any guarantee that children will see the same points as their parents do? They appeared excited until yesterday, Friday 19^th December, 2014, when my youngest daughter asked: When are we going to trade? Is this how to make money in forex? She said further that for a whole week now, all she received was "NO TRADE" calls. She started laughing, and to my greatest surprise, her mother joined her. My answer was that there could be a whole month without any chance to trade, so as to prepare her mindset for further "NO TRADE" calls. I told her it was not my decisions to make, whether to have a tradable report or not, and that I cannot tell the US government how many jobs to create in a month or tell the EU to introduce QE program or the Canadian government to reduce their inflation forecasts, so that I can trade. Forex news trading is an attempt to take advantage of any situation in an economy, whether good or bad. But I was able to let her know that if she can spend 10% of the time she spends in getting to work every day, in learning forex trading, she will not be taking home the meager salary she earns, when she used about twelve hours for work on daily basis. You only need a few minutes to set up your platform each time you have a report to monitor and possibly trade. It is only forex trading that can offer you that flexibility. Although I have not heard from the rest children, I know that she could be speaking their minds. As newbies, they will be wondering how to make money trading forex. But aren't they lucky? I only want them to follow my trade calls, that is all , not to rack their brains to evolve any trading strategy at all. They are not aware that only 2% of forex traders are now successful. If I am not experienced enough, this is capable of affecting my composure and calm, looking for a good trading opportunity. I could have rushed to find one trade either good or bad to "pacify" her. Do not allow external factors to ruin your strategy. If you are being taunted and laughed at by those close to you because you have been carrying you PC about without anything to show for it yet, don't be distracted. It is the end that justifies the means. I shall dedicate this strategy to my grand daughter, whose name is: Ilenbilu =meaning, "I know what I am doing". The name will become more relevant when the outcome of my five years of research is adjudged not to be a waste of time. My family did not even believe that I was doing something meaningful. And some friends wished I failed in my research. But I have passed the first stage, which is the successful conclusion of the research. I wish everyone a successful forex experience.

Beware of external factors if you want to succeed in forex trading. I am offering equal opportunities to everyone to understudy this strategy and find out if it will be beneficial at the end of the day.

My children do not know I feel for them because I am not an advocate of working for anybody to earn livelihood. "It is suffering and smiling". I made that decision when I was only seventeen years old and since then, I have never worked for anybody. I like challenges and I take risks a lot and that is why forex trading is my “LAST BUS STOP” . It is difficult to make much impact in life when you are tied to the apron strings of others. I know many people share the same opinion with my daughter. Forex trading is not a place for quick money making, otherwise, you get your fingers burnt. Learning should be a continuous process. And forex trading is good for those who are not in a hurry to make money.