To help us stay focused in 2016, and trade profitably in the forex markets, let us learn some lessons from the hen so that we can trade using principles from the hen.
What can we learn from the hen about how to trade forex?
- The hen will lay enough eggs before sitting on them. This is good planning. Before you ever take a trade, you must understand various aspects of the trade i.e. where your exit will be, stops and entries. There can be no real change, growth and success in forex trading without planning trades. Planning eliminates waste and impulsive trading. Planning trades cures haphazard trading. When you don’t plan as a trader, you are a disorderly trader and that will impact your bottom line. A disorderly trader will lose his equity in the long run, it is a prophecy that always get fulfilled ultimately regardless of the trading strategy implemented. Planning your trades will help you to prioritize as a forex trader and that will be beneficial for you in the long run.
- When a hen starts sitting on her eggs, she minimizes movement. That is discipline! Without being disciplined to your trading plan and strategy you can never ever become profitable. If you trade for the sake of trading, you will ultimately end up being a victim of the markets. The market will take your equity and you will end up being on the sidelines. You have to think like a military general. Do not send your troops (money) out to battle without sticking to your trading plan. It is not every trade you should take. Only take trades that conform to the parameters of your trading plan. Any trade not consistent with your ultimate financial goals is not worth taking. Captial preservation is cardinal!
- The hen physically loses weight while sitting on her eggs due to decreased feeding. That is SACRIFICE and SELF DENIAL! Fulfillment of your trading goals requires you to sacrifice time, resources, energy etc. Nothing ever works without working it out including trading the markets. If doctors and engineers can take years to master their craft, surely a forex trader needs time to hone his craft. It follows therefore, that if a trader does not take the right approach to learning, not only could it cost him his shirt but he could be eliminated before he has had a chance to start making any money.Forex is not a get rich quick scheme! It is a consistent methodology to making money. It takes time and dedication to get to a point where you can make a living from the markets. Till then happy trading!