Lesson #5: Forex Trading Doesn’t Pay For Your Time
The great news is that forex trading can bring absolutely gratifying freedom, but it’s easy to fall innocently into a trap that keeps you from enjoying the potential freedom, if that’s what you want.
Some of the more prominent images of forex traders partaking in the “good life” display images that can work against the trader escaping the hours-for-dollars grind.
Like the scene of the forex day trader who sits in front of the screen boldly calling out their trades all day long, or the forex trader showing pictures of their massive trade set up with multiple display screens, as though that translates into money and freedom. These are not the images of true liberation.
Let’s get this straight right now
I want to get something out there straight up and right now. It’s easy to be allured by the excitement of the forex markets and how dynamic the prices seem to move up and down. At first we can easily believe that it can be fun or at least have some level of excitement good or bad whilst we watch the trading screens.
The reality is that ultimately the execution of forex trading systems using sound forex trading habits can actually be boring. What I’m referring to here is entering the orders for a forex trade and waiting around for a set up to occur.
Boredom can become an issue for a lot of us in many areas of our work and life after we’ve done something for a very long time. Most especially if it’s a repetitive task. Can you think of an example in your life that didn’t start out so boring but became so?
I’m not saying that forex trading as a whole becomes boring, just the execution of it can. I personally find forex system development can be very creative and other aspects of running a forex trading business, like managing and improving results very rewarding. But we can have difficulty fully applying ourselves to these more interesting and value-adding tasks if we’re tied up with trade set up and execution.
At first a trader can find execution and watching a forex trading screen exciting, particularly if:
- They’re new to forex trading and are intrigued by the constant movement in price.
- Trading too large a position that there’s a feeling the forex trade needs to be watched.
- Trading an amount outside your comfort zone, so that your heart may palpitate with fluctuations on the trading screen in your account equity, or it gives you a rush of excitement.
- You enjoy instantaneous feedback and interruptions. Many people are like this and that’s one reason why people enjoy their smart phones with constant email inbox mico-interruptions and why we all enjoy the non-stop traffic of social media. Hey, even I can honestly admit that I missed the many micro-distractions when I left corporate life to become a private trader with it’s relative quiet.
But be aware that this interest in watching the trading screen may not last. You should think accordingly, otherwise you may invest months or years of your trading life into developing a style of forex trading that makes you time-chained like you were before forex trading.
The great news is that this trap is totally avoidable.
No hours-for-dollars trade
When we’re employed we work a certain amount of hours and get paid for those hours. What we get paid for each hour depends on the value we provide. The more value we add, the more we’re likely to earn.
When we trade forex we usually put in a steady amount of hours like we would a job to plan, design, execute and review our trading.
With forex trading it’s important to realize that forex profits are not associated with how many hours you put into the execution of your trading plan. There’s no immediate hour in, money out association.
This can be frustrating for a forex trader when you put in the work and you’re not rewarded soon after. Profits can come in clumps and a drought can be drawn out.
There’s a loose linkage between hours in and dollars out like the 10,000 hour rule popularized by Malcolm Gladwell in his book “Outliers: The Story of Success“. The more you put into learning and sharpening your skills as a forex trader, the better you’ll become.
However, it takes reflection, accurate self-awareness and deliberate positive action to improve and make your learning pay. Drifting without conscious active self-discovery and targeted improvement will not lead you to riches.
Freedom can be yours
This hour/income disassociation is what can make trading a very free and liberating lifestyle. It’s not a negative but something that can be made to work for you.
Your profits are not connected with how long you spend putting your forex trades on and being in wait. It’s a function of the edge of your forex trading system and the monetary size of the forex trades you make. That is, assuming you don’t sabotage your trading results yourself.
Time is in your control
The longer the trading timeframe you use, the less time it takes to execute forex trading systems.
If you’re manually trading a system on daily candles you need to take time out of your day once a day at a consistent time to analyze the charts and get forex trading done.
For trading hour candles you’re there looking at the close of each forex candle during the periods you’ve chosen to be open to opportunities. We can’t wait and watch 24 hours a day!
For 5 minute trading we’re affixed to the desk, eyes focused, mind racing and alert for fast action. Quick dashes to the kitchen or elsewhere can result in a missed opportunity that you kick yourself for. It’s certainly not liberation and freedom if that’s what you were seeking.
Technology can be a liberating tool
Automating your forex trading systems through the use of computer programming and expert advisors can create the ultimate liberation from time. No longer do you need to sit and watch the screen searching for the opportunity and waiting for your time to pounce.
To automate the trading of your forex trading systems takes structure and confidence to get your hands off. You’re in control through your forex system design and analysis, not your finger happy mouse skills tampering with your forex trades.
Through automation we can gain liberation of our time.
Freedom awaits us by design
With forex trading we can be free. Free from the chains to our desk for an hours-in-dollars-out grind. Your lifestyle is in your hands. It’s in the design.
Be aware that forex trading does not pay or care for your time. Don’t set yourself up for future frustration. Work with it and design the life of your dreams.
This is lesson #5 of a 10 part series for TraderRach email subscribers. JOIN NOW to ensure you keep up with results oriented traders serious about their trading success. Don’t be left behind.
About the Author: I’m Rachel Hunter, TraderRach, a Forex Trader who helps traders achieve the life they love with forex. Be strategic and design your trading business for sustainable success and have fun! That’s my mission. Join many traders’ gaining the edge with “10 Powerful Lessons for Forex Trading Success” plus other goodies. Years of precious learning specially packaged up for you. My background before trading is as a Chartered Accountant and Chief Financial Officer. I know what it takes to make a trading business rock on. It would give me great pleasure to make a difference to your success.