Forex on Five Hours a Week: How to Make Money Trading on Your Own Time

Chapter 4. Objectivity

Figure 4.1. Tame the market or it will eat you alive!: 2006 "Fxstreet.com. The Forex Market." All Rights Reserved.

Objectivity is at the heart of Forex in Five trading. It is through the use of trading tools and studies that require little to no interpretation that we can make fast decisions and have confidence in them. In my experience, far too many trading tools and approaches are subjective in nature. By the way, you've already learned to eliminate the largest problem in subjectivity. You know what that is? Market cycles! Is the market moving up, down, or sideways? That distinction alone can make the difference in your current trading. If you did nothing else but figure out what cycle your current strategy was designed to trade, and then go about using that strategy in the appropriate market cycle, you would make a profound improvement in your trading with that one adjustment.

For most traders, their selection of a trading entry is what I call canned. They simply memorize some steps and apply it to the market irrespective of the underlying market cycle. The market seldom sets-up a trade the same way all the time. There are nuances, slight differences, which can often make one version of a set-up look different from another. Most books and educators unfortunately focus on the well-chosen example: that one textbook example of the strategy at work. So now you ...