Probably the greatest ways to beat the long learning curve and shorten the road to competency – and eventually skill mastery – is having a mentor or coach to guide the best way.
But unless you’re among the many few who’ve worked their way right into a hedge fund, proprietary trading firm, or institutional trading team, your access to an experienced and willing coach might be slim to none.
And yes, there are knowledgeable and talented individuals all across the web (including in our super cool forex forum) who enjoy sharing what they do and willing to present out general advice, but most of those folks don’t have the time or ability to do the things that a coach does:
- Records and analyzes your effort and results
- Observes and identifies any psychological roadblocks
- Prescribe ways to enhance trading processes or techniques specific to you
- Motivates you whenever you need it
Fortunately, there may be another that could be effective and it won’t cost you a dime: self-coaching!
Self-coaching involves doing all the above-mentioned tasks on yourself, which to some, probably doesn’t make sense to do.
How will you (a non-experienced, wannabe forex newb) coach yourself to perform higher?
Well, here’s the very first thing to know:
A coach isn’t necessarily a teacher.
While the 2 roles could be blended and a coach can teach, a coach’s fundamental job is to guide, observe, redirect, and motivate that individual or team to do the suitable things to attain the goal.
Before one could be coachable, they will need to have the elemental skills of their chosen career internalized.
A master sushi chef doesn’t say to his apprentice, “that is the way you cook rice” each time the apprentice must accomplish that.
The apprentice is shown perhaps a few times (or perhaps he already knows the skill) and is then sent off to do it. The master chef will take a look at the apprentice’s work after which give guidelines on do it higher next time.
On the planet of foreign currency trading, you must have all of the elemental knowledge and trading skills (e.g., understanding market behavior, entry/exit frameworks, trade/risk management, position sizing, etc.) locked down before taking trades and being coached.
Keep in mind that no coach desires to waste their time on someone who isn’t serious.
The great point is that foreign currency trading concepts and techniques are mostly easy to know, and could be found totally free in our School of Pipsology or learned from folks willing to share all throughout the web.
When you’re past the initial learning stage and have chosen a basic trading framework that you are feeling matches you, then the self-coaching (i.e., the true work of a trader) really begins.
The self-coaching process could be very easy and at a bare minimum, only requires three things:
- A forex trading journal,
- Plenty of self reflection and being honest about yourself, and
- Writing all of it down.
With the ability to screenshot charts and markin’ them up would make the method more efficient.
And if you will have great attention to detail and also you’re good with words, then it’s possible to work your strategy to the competency stage of development by diligently keeping an easy written journal.
The fundamental self-coaching process is identical as what a coach does:
1. Observe and record the whole lot.
Write down your efforts, plans, and any mistakes and observations about yourself and market behavior that should be addressed.
Remember, what isn’t measured can’t be managed or improved.
2. Review your observations.
With the solid fundamental foreign currency trading knowledge and skillset already acquired, review your observations and determine how you may make higher decisions or improve the trading process.
Again, trading concepts are pretty easy and only requires common sense to enhance and avoid mistakes. But you will have to ask A LOT of questions. Don’t just have a look at a winning trade and think, “I must have had a much bigger gain.”
Ask questions so you may improve. Was my goal appropriate? Should I even have added to my position on this environment? Was my entry the most effective on this particular situation?
When you actually need help, show your journal to others for feedback.
3. Create guidelines.
Create guidelines so you may avoid bad trading habits. Also, remember to practice good trading habits for future trading sessions.
With time and practice, this could be internalized, but you must make it a habit to review it commonly.
Write down why you bought into trading and/or your life goals. Review each day to motivate you. You will want to do that because there will likely be days (very many at first) where trading won’t fun (read: profitable).
4. Rinse, repeat and stay focused.
That’s it, forex folks. Easy, but tough as this can obviously be a whole lot of work. Plenty of the questions you ask yourself to enhance will take time, and perhaps some experimentation before you discover the suitable answer that matches you.
And don’t think this process only applies to discretionary traders, chartists, or mechanical traders. Robots should be watch and improved upon as well, and as with some other tool, applied to the situation it was made for.
Take into accout that there isn’t any guarantee of success in anything we do, even when years of labor is applied. This is particularly true on the planet of trading and investing as it’ll at all times be a game of probabilities.
However the one thing that I can say is that and not using a technique of deliberate practice and reflection like self-coaching, your probability of success on this business is significantly reduced; perhaps even zero.
So, don’t just have a look at charts, aimlessly buy or sell, call it day, after which grab a drink with friends to have a good time (or sulk) over your trading session… grab your journal and get to work!
In search of your individual spot to record your market observations & trading statistics? If that’s the case, then take a look at TRADEZELLA! It’s an easy-to-use
journaling tool that may result in invaluable performance & strategy insights! You’ll be able to easily add your thoughts, charts & track your psychology with every trade. Click here to see if it’s best for you!
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