Noise in trading is not trading in a crowded room with many people talking and music playing.
Basically noise is a distraction or lack of concentration only giving you a limited amount of focus
on your trading.
Here are some examples of trading NOISE:
• Listening to trading talk shows
• Trading news announcements
• Trading in smaller time frames
• Not having a trading plan
• Only trading one or two currencies
• Internal voice or conflicts…concerns about other things while trying to trade
Noise happens to all traders seasoned and beginners alike. The difference between successful
traders and the unsuccessful traders is that disciplined traders remain in tune with the market in
thought, emotions, logic and actions. They stay in the now, and focused on what matters most
in the trade.
Here are some suggestions for cures to limiting NOISE:
• Do not listen to trading talk shows
• Only trade around the time of the news. Do not trade what you think the news is saying
• Have a trading plan
• Have trading goals and plans of execution
• Record your results to know where you are at on your success path
• Trade many currency pairs not just one or two
• Take only high probability trades (5 alarm trades)
• Be focused on the moment…there is time for other things
• Trade with a stop loss and take profit
Focused totally on what is happing right now. This means that you are using your strengths,
all of them, to prepare, analyze, process and execute the trade according to your trade plan,
your strategies and your rules.
Being in the moment means that you are not unduly concerned about what happened a few
moments, a few hours, a few days ago or any past event because it is not relevant to what
you are doing right now. Especially about being concerned about past successes and failures
with trades, or other outside distractions like work, family, or what you are going to do on the
weekend. You are also not concerned about what a trade might bring you. Let it do what is
going to do, take what the market is willing to
give on that trade only.
Once you have learned a trading system and mastered a few trading strategies become a
mechanical trader. You will find that the noise is soft and sometimes you do not even feel
any distractions when you are trading.
When you have found what works for you do it over and over without trying to analyze the
same trade setup again or reinvent your trading system or strategies traded.
To learn how to make more FX pips with less noise check out
http://www.forexstrategysecrets.com and check out our free Jump Start Trading strategy to
give you a taste of how to be a mechanical trader. When you sign up for Jump Start you will
get one month access to our trading room where you can watch successful traders trade.
You will be able to learn from them and see how they make 100′s of FX pips a day and they
are having fun while doing it.