Trading in a Forex broker is almost like turning into a professional chef, an efficient endeavor that requires patience and order. In a way, the Forex market is like a kitchen and in order to conquer it you need the best tools you can get and you have to work with great focus and interest.
After meeting with several chefs and watching them on television, in shows and in documentaries on cooking, I have identified at least three things that Forex traders can learn from professional chefs:
1. Mastering the principles
Enthusiastic chefs begin their training by learning the basics, such as meat types, vegetable slices, and hand-knife techniques. If you can’t cut your mushrooms evenly or don’t know when to bring the beef out of the oven, you definitely won’t be able to make the perfect Wington beef.
Just like chefs who must master the different ways of making sauces, Forex traders must at least have a basic knowledge of technical analysis, fundamental and market sentiment analysis.
Understanding the different patterns of charts, technical indicators and economic correlations is important if you are going to have full and reliable profitability. Otherwise how would you like to know if a trading tool is doing its job properly or if your trading method is working?
2. Always keep improving your skills
It is unlikely that novice chefs can make the best soufflés or the best steaks. Behind every delicious and delectable meal, there were so many delectable dishes that the chef learned from each of them to finally enhance his skill.
Unfortunately, many traders do not take this crucial step and believe that as soon as they read a trading instruction, they can trade like a Wall Street trader! The reason for this is also clear, most people see the trading job as one of the “get rich overnight” ads, not as a very lucrative but laborious job. That’s why more than 90 percent of those who enter the financial markets lose all their capital in the first year.
People interested in trading should learn to look at their losses as a friend who kindly recounts their problems and problems. Therefore, writing trading journals and reviewing trading records is one of the most important ways to improve your trading skills.
3. Use more than one recipe
Chefs know full well that just by learning and practicing a cooking recipe, no matter how great and tasty it is, it will not succeed. They try to update their food menu from time to time and replace unpopular foods that nobody recommends with popular foods.
They note that the recipes are cooked at certain times of the year and cook accordingly. Some even travel around the world to choose techniques and materials to add to their recipe books.
As a trader we should also try to blend strategies together. Just because an attractive, trendy system doesn’t work for you, doesn’t mean it will continue through the end of the year.
Do not be afraid to experiment with different business styles, indicators and techniques. In fact, having multiple trading strategies tested under your head increases your chances of profitability no matter what your business environment.