Method is Everything!
Boil it all down and trading comes to one page of information, your Trading Plan, and at the heart of that plan is a brief description of your Method followed by four sub-titles:
Overview: Market & Trade Selection
Set-up
Trigger
Trade Management
The rest of it: the risk, the transaction costs – pip spreads –, the patience, the discipline is just common sense.
The keys to choosing your method in my experience are fact based triggers which can be easily verified by manual back-testing, and scalability, meaning if it works on one time frame it will work on all time frames.
Sure it’s a head game, but that all stems from lack of believe or experience with your method and unrealistic expectations and time-lines. Mind-set is not always an easy aquisition.
Jay Norris
DISCLAIMER: Forex (off-exchange foreign currency futures and options or FX) trading involves substantial risk of loss and is not suitable for every investor. Risks include the potential that changing political/economic conditions may substantially affect the price/liquidity of a currency. Investors may lose all or more than their original investments.