This article looks at the act of leaving your forex trading comfort zone.
When you start trading you are told to find strategies and trading techniques that you are comfortable with. When you do this you will be creating your own trading comfort zone. This is something that you have to do when you first start forex trading. However, as you become more experienced you should consider moving out of your comfort zone. This is something that many traders do not do and still make a profit. However, you have to consider the implications that could arise from staying in your comfort zone. You should also look at what you need to do to leave your forex trading comfort zone.
Finding Your Comfort Zone
The comfort zone that you have is generally going to be the one that you created when you first started trading. This zone will be safe and you will know how to trade within this. The problem is that once you gain experience on the market you could outgrow the comfort zone that you have. The zone was created with a new trader in mind and as a more experienced trader you could be holding yourself back by trading in the comfort zone.
The first step to moving out of your forex trading comfort zone is to determine what this is. You have to consider what is included in your comfort zone. You will generally have a strategy that you are comfortable with and a currency pair that you trade with. The type of analysis that you complete should be noted and you need to look at the indicators that you are using.
Slow and Steady with Forex Trading
Once you know where your forex trading comfort zone is you need to consider moving out of this. There are a lot of traders who make the mistake of taking a giant leap out of their zone in the hopes that this will bring large rewards. This generally ends with the trading taking on more than they should. You have to be methodical in your approach to exiting your comfort zone.
After you have determined your comfort zone you have to consider whether or not you actually need to leave it. There are a lot of traders who find that the zone they are trading in will be ideal even with the new experience that they have. If this is the case then you may only have to change a few small aspects of your trading.
If you find that you need to leave your comfort zone you have to create a plan to do this. You have to consider where you are going to be going and how this will impact your trading. It is best that you test out any moves that you decide to make on a demo account. This allows you to see if the direction you are going in will work for you.
Expanding the Comfort Zone
If you do not want to leave your comfort zone then there is another option that you can consider. This is the expansion of your comfort zone. This expansion is done in the same way as diversification and carries the same risks. The larger your comfort zone the more you will have to do and the higher the risks are likely to be.
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