Forex trading is survival of the fittest. Are you evolving or dying?

In the previous article, I briefly introduced to you that foreign exchange trading is the survival of the fittest, whether you evolve or die (Part 1). Today, I will continue to explain to you how to avoid being eliminated in the foreign exchange trading environment and even evolve to the strongest.

How to become the "best fit" trader you can be

Retained capital:

If you want to survive, save your capital.

In the wild, the Australian marine crocodile is one of nature's most finely tuned and evolved predators. Another highly developed, finely tuned predator is the African lion.

Both of these amazing predators exhibit behavior as forex traders, and we can learn from them.

One such behavior is to conserve energy for the simplest (weakest) prey.

They may wait a few days before searching for their ideal prey, and they certainly won't hunt after everything they see, knowing it will lead to starvation.

As time goes by, they have adapted and come to the realization that waiting (patience) is the fastest way to get a good meal.

They conserve their capital (their energy) so that when an ideal prey appears, they can hunt it down and easily kill it.

As a foreign exchange trader, if you take risks on every small pattern you see every day, you will quickly run out of capital.

Then when a good/easy deal comes along, you cry on the sidelines.

I hope you can always be patient and save your funds better, that is, you have to learn to trade like a crocodile.

Choose smart trades:

Similar to the above point - just as predators choose their prey wisely, so you must choose your forex trades wisely.

For those foreign exchange transactions that are not very good, you must maintain discipline and patience.

Just as a lion is not chasing the most powerful prey, he chooses the simple/obvious prey because he knows that his energy reserves are limited, and if he continues to expend energy without prey, he will die.

Similarly, if you continue to overtrade and fail to follow the expected trading plan established by waiting for high-probability trading situations, you will quickly lose money and your trading account will die.

As Warren Buffett once said, Forex trading is not a game of the so-called swing game - you don't have to swing at every pitch!

Evolution/Adaptation:

The most important part of the puzzle of becoming one of the "best fit" forex traders is to accept that in order to progress and profit, you must evolve and adapt.

First, you must learn how to trade properly, and over time, you will continue to learn and study the price action on the chart from the chart.

Then you have to start the process of trying and going through some mistakes, learning from past mistakes, and moving from beginner to middleman.

Next, understanding adaptation and development also means that you can adapt to changing market conditions.

If you continue to try to trade when the trending market converts to a range or consolidation market, you will lose money.

Being able to look at price charts, interpret the story of price action being told, and act on it is knowing that you are on the right track.

You must constantly learn from your mistakes. If you cannot use your strengths to develop your strengths, you will not become a successful Forex trader.

Therefore, don't let mistakes get you down. See each mistake as an opportunity to learn and improve.

conclusion

If you can't keep learning, adapting, and improving, you won't be able to survive in the trading game.

Trading is indeed survival of the fittest, and only the most well-suited charting technicians, price action analysts, and those who are passionate about their trading can survive.

This means that if you try to make some "quick money" here, you won't survive.

Part of being a proper trader is a true love of trading, which at the same time influences you to trade in such a way that it results in more profits than losses.