Can The Greek Crisis Make You A Better Forex Trader?
We were reading an article over on MSN Money about the Greek crisis and what it means for investors. There was a lot of good points to the article, and made us think of what the Greek crisis really means for Forex traders. (If you want to read the full article, you can do so here: How The Greek Stalemate Can Make Us Better Investors).
You don’t have to be a Fundamental Forex trader to know there is some interesting things happening in Greece which can effect the EURO and currency markets in general. And while fundamental traders are trying to figure out what is going to happen and how they can profit, the big question is: What does it really matter?
Long Term Mindset Wins
The article goes on to talk about the difference between taking a long term view of investing compared to a short term view. For example, by taking a long term view, crisis like what is happening in Greece don’t really have all that much importance. On the other hand, for the short term investor, the importance dominate your trading activities.
But here is the real point:
Investors who take a long term view do a lot better than investors that focus on the short term. The article exemplifies this by comparing 2 hypothetical investors (one long term and one short term). Here is the conclusion:
“So by doing nothing more complex than shifting his focus from the short term to the long term, this hypothetical investor would have gone from lagging the market by a large margin to beating it by an even larger margin”.
But the real lesson comes from the mistake most investors are making:
“Unfortunately, our technology-crazed world seduces investors into just the opposite kind of behavior than what I am suggesting here. A number of psychological studies have shown that investors engage in increasingly destructive short-term behavior the more frequently they re-examine their holdings and calculate their portfolios’ net worth. And, yet, because of the Internet and social media, our attention is constantly being diverted away from this longer term that matters”.
You see, technology makes it really easy to focus on the short term. As a Forex trader, you can watch your trades on the charts 24 hours a day… and experience the emotionally roller-coaster ride with ever tick of the market. And the more you watch, the more likely you are to DO something, like close your trade early or abandon your trading plan altogether. This is not the path to long term profits.
How We See This Problem A Forex Investing Live
We see this problem over at Forex Investing Live. People join our Premium Membership to get the possible long term profits from our signals packages (Forex Investing Live Signals, Price Action Forex Signals or Heiken Ashi Forex Signals). But then they start to focus on the short term… judging the service on short term events like if they win their very first trade.
At Forex Investing Live, people place the trades on their accounts manually, which means the ARE faced with the challenge of looking at their charts at least once a day. It is hard for some to take a long term view when you are calculating your profit and loss on a daily basis. But for those subscribers who do take the long term view of using the service… beating other investment markets by a HUGE margin is possible!
How We See This Problem At Forex Auto Trade Signals
You would think things would be better at Forex Auto Trade Signals, where the signals are placed on the subscriber’s trading account on autopilot, would be better. Theoretically, you can just set up your account and risk profile and not look at your account for long periods of time. But just the opposite is true. Many subscribers use the trade copying… but still check their accounts on a daily (or sometimes multiple times a day) to see how things are going.
Even when using an automated trade copy solution like we provide at Forex Auto Trade Signals, you still need to act like a professional trader and take a long term view.
Why We Are Successful And
Survive Turbulent Market Conditions
A long time ago we moved away from the lower time frames and restrict our trading to the Daily charts. This greatly increased our success. But that is only part of the reason we are successful. The other reason is we adopt realistic goals for our yearly trading goals and look at the LONG TERM profits from all our trading strategies.
Once you move away from the short term view (first by avoiding the lower time frames and then by taking a longer term view of your goals), it becomes quite easy to make nice profits participating in the Forex markets. We set ourselves up to take what the market wants to give us, when it wants to give it to use, and just keep placing the trades as our strategies dictate. The result… reduced stress, steady growth and long term profits that beat other investment methods.
Take this opportunity to adopt a long term mindset during the Greek crisis. Understand that this kind or turmoil is just part of trading. And most importantly, realize that taking the long term view of Forex investing is going to result in a lot more PROFITS over the long run compared to working yourself into a frenzy with every new news event. This change can be the difference between losing money and consistently outperforming other investment markets.http://tradetheforexmarket.com/featured/can-the-greek-crisis-make-you-a-better-forex-trader/http://tradetheforexmarket.com/wp-content/uploads/2015/07/Can-The-Greek-Crisis-Make-You-A-Better-Forex-Trader.jpghttp://tradetheforexmarket.com/wp-content/uploads/2015/07/Can-The-Greek-Crisis-Make-You-A-Better-Forex-Trader-150x150.jpgBlogFeatured