Trading Tips: Get Out of the Comfort Zone Safely
One of the mission of Market Analyst & Education team is to help traders to develop good trading habits through practice and repetition. This team can help you to learn forex trading, recognize your weaknesses as a trader and determine what ways can succeed (and not succeed) for you. Simply put, the goal of forming this team is to help you to be able to collect profits consistently.
You might get materials about trading tips and tricks , learn some trading strategies and start making transactions on one of your chosen currency pairs . When you are comfortable with the strategy applied to one pair , there is usually a kind of reluctance to try to transact on another pair . Some for example only want to trade gold, oil, or GBPUSD only. Even though it can be a lot of opportunities that are also created in other pairs or commodities. If you only want to trade one pair , of course it is impossible for you to reach the opportunity that appears in another pair . That is the same as you limiting the potential benefits that you can achieve.
Indeed, I repeat that the beginners should focus on just one or two pairs, so that concentration is not easily dispersed. But hey, that’s a suggestion for beginners.
Actually as time goes by and your experience increases, your intuition and expertise will be even sharper. If it’s like that, it’s good for you to open yourself to preparing to release the status of “newbie” that has been attached.
Well, this time I want to try to discuss the possibility for you to try to get out of the “comfort zone”. Relax, I will not ask you to enlarge the transaction up to three or four times, or force you to leave the soft seat that you normally occupy when trading.
As a trader you need to know some trading methods because the market is not static. He is like “life”. Motion and behavior are very dynamic, even they can change in a short time. Therefore, if you only know one method, it will be difficult for you to be able to anticipate changes in the “nature” of the market. So you need to broaden your horizons and develop your trading skills.
Besides increasing your knowledge of trading, getting out of the comfort zone can also open up the horizon of knowledge to recognize more opportunities (and most likely: more profit). If you do it well, it will increase your ability, confidence and mental mastery as a trader.
But you still have to be careful. Getting out of your comfort zone can also mean exposing yourself to a level of stress that might be higher. It also means more opportunities to make mistakes.
For that there are a few tips for those of you who are ready to step out of your comfort zone so far.
Talking about stepping out of a comfort zone doesn’t mean that it has to be done drastically and extreme.
For example, the risk limit per transaction is only 5% of the last equity, it may be slightly enlarged to 7% or 10%. Thus, the number of lots that you can use can be a little bigger
If you usually only trade in one currency pair , try to glance at opportunities in two or three other currency pairs , so you can try to find opportunities in three or four currency pairs.
In essence, do it slowly. I also do not recommend radical changes, for example from limiting 5% risk directly to 25%, or from one currency pair suddenly directly observing seven currency pairs at once. Just slowly.
Try New Strategies with Demo Accounts First
If you find a new theory or strategy, don’t rush to apply it in the real account . Try it first on the demo account . Thus, you will be able to try it freely without having to face the risk of losing money.
Do not also rush to be able to immediately use the new strategy in the real account . Try at least three months without stopping. Remember, you already have a trading strategy before and have proven to produce. Before you can really prove the “efficacy” of the new strategy, stay true to the trading plan that you have had before. Use the new strategy if and only if you have truly seen its effectiveness.
Most experienced traders routinely get out of their comfort zones. We, the Market Analyst Team often tests new strategies and trading methods for us. Sometimes the test results are successful, sometimes they fail. But for us, what matters is not the result, but the lessons we learned.
Remember that every time you do something new – whether it’s testing a new method or finding a new theory – your reality as a trader will be tested. If you remain humble and open, it is likely that you will find new things that you have never thought of before. Very likely new ideas will appear on your mind and – by itself – you will develop.
For the sake of honesty, I say that it’s not easy to step out of the comfort zone. Maybe you will initially fail and return to your comfort zone. But over time, you will be able to learn many things. So, do not give up on the first or second trial, because it could be in the third trial and then you will get a lot of increased ability and maturity as a trader.
So, are you ready to take the first step to get out of your comfort zone now?