3 Quick Ways to Enhance your Forex Trading Skills

3 Quick Ways to Enhance your Forex Trading Skills

It is always a good thing in life not to be seen as a one trick pony. In Forex, it’s just the same, you need to have several trading alternatives that you can rely upon should the market timing dictate. Not only do you need to know your trading strategies off by heart but you also need to have and be willing to try other approaches when the market environment changes.

In order to sustain your trading edge, you must always be ready to adapt, and this requires diversifying your skills. New skills do not need to be far away from your existing, and sometimes it is just tweaked in your habits to find new opportunities.

Here are 3 Ideas:

1. Look at other Timeframes

If you are a day trader, it does not mean that you have to stick to shorter time frames all the time.

It is not unusual to hear of day traders checking out larger / longer time frames to see the currency pair’s directional trend.

At the same time, swing and position traders usually learn about significant levels (Fibonacci Retracement and Pivot Points) and adding positions from Day Trading Techniques.

2. Try trading other Pairs

If you think that you have mastered the behavior of currency. Move up to next stage. e.g. If you consider yourself the NZD/USD expert amongst your peers, try looking at the NZD/JPY, or EUR/NZD.

This way you are maximizing your ability to predict the Kiwi’s price action, but your trade ideas are not limited to a couple of currency pairs.

3. Be open to other trade setups

Expanding on your trading skills ultimately boils down to you being open to new strategies.

Again, you do not have to veer far away from the skills that you already have if you are a system/probabilities trader and you can spot confluences even in your sleep, then it wouldn’t hurt you to try out other systems that have similar concepts.

Discretionary traders can make room for new ideas and trading opportunities by looking at other leading or lagging indicators or adjusting the parameters.

If you are trading ranges and you know when they’re about to break out, then maybe you could try breakout trading.

The whole point of this exercise is for you to acquire new weapons in your trading arsenal. Having an edge in a trading is always the good thing, but you need to develop fresh sources of the “edge” to sustain your advantage.

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