My main objective for filling this report is to expose to all our readers FX solution, key philosophies, principles and psychology required not just to survive, but win the Forex Trading Battle. In all my efforts to come up with better strategies for trading news events more profitably, I think this one has given me so much leverage over most strategies I have used in the past. The fun thing here is not necessarily the profit but the time and efforts required to make such returns with well calculated and minimized risks giving just a fraction of my time.
Anyone familiar with the Forex market will tell you it can often be time consuming, so heart breaking and too risky. There is no doubt the market is very risky, but the 5 minutes News Trading Strategy exposures how all these can be taken care of with relative ease.
Introduction to the 5 minutes News trading Strategy
The 5 minutes News Trading Strategy belongs to the 5 minutes trader. Here is a trader that who organizes himself so well that he does not allow his trading result pose a problem to him; whether he is winning or losing. One thing I have enjoyed with this strategy is the fun of not having to stay in any trade for longer that 5 minutes. Could you imagine this: You have reviewed your economic calendar and found out that a news event is coming out from say, Australia at 2:30 am (Nigeria time), you set your alarm clock to wake you up at 2:22 am. At 2:22 am your alarm clock rings and you are awake. You turn your computer on and about 3 to 1 minutes to 2:30 am (between 2:27 to 2:29 am) you have set up your orders and by 2:33 or at most 2:35 am you are back to bed with 10, 15, or 20 pips or more profit as if nothing happened. Some other times, he wakes up and before 5 minutes he has taken a little loss of 5 to 10 pips and is still very profitable. Guess what? He understands the market and has taught to use his risk management skills very well, as well as managing his trading psychology. Another good thing about the 5 minutes trader is that he has known the events that are worth his time and has great discipline to stick to them. He can now afford to trade, take care of his family, earn a salary working for his boss because even now, he does not commit as much time in his trades as he does his full time job and still earn more than he is paid.
His Trading Philosophy, Principles and Psychology
One thing he has worked so hard to develop is the ability to stay disciplined. He has trained his mind so well that he came up with the following philosophies:
My trading philosophy and principles: the following make up the core values I have adopted as a trader and which have formed my trading philosophy and principles,
1. Treat losses the same way you treat profits.
2. Start small and grow to whatever level you desire.
3. Do not focus on the immediate small losses or growing gains; always keep the end result in mind. In other words, it is the monthly result and not one single trade that determines my profitability in the trades, but each trade contributes to the end result.
4. Let the law of compounding work for you. Target building from small to big.
5. Find what works for you and stay with it; always be yourself.
6. Always have a plan; and in your plan decide how much you would be willing to loose before accepting any trade. Also decide your profit ahead.
Managing his Trading psychology, otherwise known as Emotions
He has this to say again:
Taking control of your Emotion and handling losing trades-
Without doubt I can authoritatively tell you, before you read any further, that the best skill you need to work tirelessly to develop as a Forex trader is the emotional control. Some call it psychology, what ever the name, you just have to learn to take absolute control of your emotions, Miss this point and you miss out on the opportunities that this huge market has to offer. I have had many call me and just lack words to express their disappointments in the market. Some have actually given up trading, believing it is not for them. But this does not have to be so if only you will humble yourself and learn these important facts about trading. It will be very sad for you to allow the market to humble you as it has done so many who are now afraid to take another chance. Now the smart question I expect you to ask is this; what are the emotions to take control of in other for me to truly conquer the FX market? And I will answer you right away. Here are the emotions you have to control: Greed, Fear, Ineptitude and Revenge or Anger.
How do you do that? I will summarize the answer in one sentence; "Treat your losses the same way you treat your profits, but make sure your losses are always smaller than your profits." This is the question I always ask myself when I lose a trade and want to re-enter immediately; "If this trade were a winner, would I enter a second time and risk losing my profits for that day" I hope this will also help you in handling losing trades and losses. Remember, always determine and know your risk before ever taking any trade. If you do not know or are not sure of what to risk then do not trade.
The next thing I have also adopted is to laugh at all my trading results; profitable or not. Watch your psychology, learn how to trade for only 5 Minutes Per News Event and pile up massive profits.
Source by Biachi Solomon