| Intuition plays an important role in Forex trading. It | | | | learning to ride a bicycle all you did is keep |
| can create confidence or doubt in your trading | | | | repeating a few simple mechanical steps that |
| decisions. Intuitive action is in some way opposite | | | | developed your feel for the balance. So the first |
| to mechanical type of action. Trader doesn't need | | | | thing is to choose a system that has simple rules |
| rational justification for making a decision. Most | | | | of entry and exit. |
| successful traders have developed their intuition | | | | Back test your system on a historical data. |
| to help them in their trading. | | | | This is very crucial step. Do not skip it. You need |
| How you can develop intuition? Intuition or feel for | | | | to take at least 100 practice trades on historical |
| the market is not something you naturally have. | | | | data. By doing this you accomplish three things. |
| Even though it seems that some people develop | | | | First you will develop you trading skills. Second |
| it very fast as they start trading in Forex. | | | | you will find out the expectation of your system. |
| In my opinion intuition in trading is the same thing | | | | If it is not profitable then you have to change |
| as keeping balance while riding a bicycle. How do | | | | parameters of the system or change it |
| you develop that balance? By practicing over and | | | | completely to another one. And the third most |
| over to ride a bicycle regardless of how many | | | | important thing is that you will learn the behavior |
| times you fall on your face before you can | | | | of the currency pair. That's the beginning of the |
| confidently ride it. The same thing is with the | | | | development of your intuition. |
| trading currencies. Before your develop intuition | | | | Forward Test your system. |
| and feel for the price movement you need to | | | | After you found that your system is profitable |
| practice simple steps in trading. | | | | you need to test in real time. This step is similar |
| I have outlined three most important steps to | | | | to backtesting but this time your do it in real time |
| develop your balance in trading Forex. If you keep | | | | on a demo account. Make at least 30 trades in |
| following them relentlessly sooner or later you will | | | | real time. Now it is time to observe how price is |
| develop your intuition for price movement. | | | | behaving before you get the signal to enter the |
| Pick a trading strategy and a currency pair. | | | | market. It is this observation and executing the |
| First thing you need to do is to pick a trading | | | | trades will actually develop your intuition. Gradually |
| strategy that almost 100% mechanical and a | | | | you will be taking trades based not only |
| currency pair. You may ask how a mechanical | | | | mechanical rules of your system but also on your |
| system can help you to develop a feel fro the | | | | intuitive discretion. |
| market. Trust me it will help. When you were | | | | |