Patience In Forex Trading

Patience In Forex Trading

by | Apr 18, 2021 | FOREX FOR BEGINNERS, FOREX TRAINING

Why Is Patience So Important?

Ask anyone in any field, they will tell you that without patience and perseverance , you can never go anywhere (we cannot do anything without it). Whether you want to lose weight, eat clean, start a new business, or even being a parent requires a lot of patience. Being patient means we have to learn to be calm, even when things aren’t going our way. As hard as it is to exercise patience, it is one skill that everyone must possess, especially in this field of trading in the Financial markets.

When I look back at what I’ve been through in my trading journey, there were times when I really felt like giving up but I am glad I didn’t. A trader who lacks patience will always donate his/her money back to the Markets. Newbies to the markets do not really like to hear the word patience, all they want to do is to place that trade and make their profits. Professional traders do not trade every hour of every day and as a trader, you need to develop different types of patience for different situations.

1.Patience to wait for your perfect setup

Most traders fail even with the best strategies. They fail because they are not patient enough to wait for that perfect setup. If you always trade when in a rush and never plan for your trading sessions, you are only headed for disaster. Every business has a structure, I fail to understand why traders think it is OK to just trade without a proper plan or structure. If you want to be successful in this field, you need to learn how to plan and follow through with your own trading plan.

2.Patience to let your trade run for a bit longer

There are traders who are very patient to let a losing trade run for a few days while it depletes their free margin, but they fail to let a winning trade run till it reaches it’s targeted profit. All the above applies with every method of trading. In my method of trading planning is everything. I teach my mentees to be good planners and never to be random in the markets. Every business has some sort of structure and forex trading is no different. This was the shortest post I’ve ever written but hopefully you have gained something. I have just done my weekly trading plan and I am ready to face a new week with new possibilities and opportunities.

Thank you for stopping by. Please kindly share this post with your peers. To receive notifications on your email whenever I publish a new blog post, you can subscribe to the blog. You can also download my App on Google Playstore and have this content at your fingertips. Earlier today, I published a new episode on my Podcast titled ”Trading for a living, is that even possible?”. Till next time, cheers.

Reserve Bank Of Australia Interest Rates

Reserve Bank Of Australia Interest Rates

by | Apr 4, 2021 | ECONOMIC NEWS

What is A Central Bank?

A Central bank is a national bank that provides financial and banking services for its country’s government and commercial banking system.

What is the role and function of A Central Bank?

  • To set official bank rates used to manage inflation and exchange rates
  • To issue a country’s currency
  • To set targets and monitor economic data while they implement special tools.

One of the special tools that is used by a Central Bank is Interest/bank rates adjustments. When a Central Bank sees a need to hike or cut their rates, they simply do so.

Why do Central Banks hike their Interest Rates?

When the economy is growing at a rate that may lead to hyperinflation (monetary inflation occurring at a very high rate) that is when the Central Bank hikes the county’s interest rate.

Why do Central Banks cut the Interest Rates?

Central banks may cut the Interest Rates to encourage people to borrow more money at a lower rate, be it for new houses or businesses. The aim is to also make saving money less attractive as the returns are lower when the rates are cut.

About Reserve Bank OF Australia (RBA)

Reserve Bank Of Australia’s Interest Rates are released every first Tuesday of the month, excluding January. On the 6th of April, they’ll hold their 3rd meeting of 2021 to decide on their Interest Rates.

Why Do We (traders) Care About Interest Rates?

Interest Rates are a primary tool that a Central Bank uses to valuate their currency. If their plan is to hike, it strengthens the currency and if their plan is to cut, it weakens the currency.

Thank you for stopping by. To help with your planning, below is the annual schedule of RBA. Please kindly share this post to help other traders. You can also download the App on Google Playstore to read on the go and to access weekly tips on trading psychology (only posted on the app). Listen to my latest podcast HERE and kindly share with your friends who are looking for practical Forex content.

Need Help? Chat with me