A sniper in the military has an edge over his or her enemy; their edge is unwavering patience, mastery of their weapon, the ability to remain consciously in control of their mind and body for long periods of time in high-stress situations in order to aim and take down a target. We can apply these same concepts to Forex trading.
Forex trading is very similar, you need a trading edge (weapon) which is your strategy be it swing trading, trend trading, gap trading, news trading etc. You have to master this edge, then develop and maintain rigid self-discipline, patience and control, and you have to execute your edge flawlessly in the face of constant temptation to not to over-trade and over-leverage. Now, trading is nowhere near as stressful as war, but it still requires conscious control of mind and body. Remember loosing a battle does not mean the war is lost. You can set your targets on Weekly or Monthly basis to help have a balanced psyche of your Sniper weapon.
To be candid, the Forex market is not your friend when it comes to trading profitably as it is designed to rip you off your hard earned money. Please do not let anyone fool you about this fact, the general ideology we have for choosing Forex trading as a career is that we want to make easy wealth from the financial markets without stress. Yes this is possible but it comes with hard work and a lot of sacrifice with research. You see, the market has a trading volume of over 4 trillion dollars and most traders believe they can take advantage of this fact. Little do they know that there are sharks out there trying to devour them.
I have come to realize over time that its not about the amount of frequency of trades you transact in the market but by quality of trades. I noticed that most professional traders do not trade more than twice to thrice in a week. And when they do this, they use a reasonable lot size that fetches them cool dollars. There was this friend of mine who had 500 pips from the market within 3 days and i asked him how much the profit in pips was worth in dollars. To my greatest surprise this profit in pips was just equivalent to 20 dollars, funny isn’t it? However what baffled me is that before the week ended he gave back all the 500 pips to the market. You wont believe this!
On the other hand, i have a friend who doesn’t trade more than 2-3 times max in a week. Yet he makes an outstanding income on Monthly basis and i asked him how come he makes such amount with his less trading activity in the market. He replied me saying “trade with a sniper not with a machine gun”. This made me started seeing the FOREX market from another angle, i remembered a slogan about how to become a successful trader back in those days in baby pips. It says make pips, keep pips and repeat the process. The problem most traders face is these, they make pips but cant keep it and repeat the process.
One of the things that we traders can learn from a sniper in the military is that in certain situations less is indeed more. Forex trading is definitely a “situation” where less is more. However, it is very common for beginning traders to feel that more is better; more Forex indicators, more trades, more analyzing, more money on useless trading robots, etc.
Most beginning Forex traders are like machine-gunners; spraying bullets (money) at everything they deem to be a trade and likely causing more damage to their trading accounts than good. The first step that you need to make if you want to trade more like a sniper and less like a machine-gunner, is to truly accept that less is more in Forex trading.
Sniper-like Forex trading breeds confidence and discipline. The more you strive to trade like a sniper and less like a machine-gunner, the more your Forex trading confidence and discipline will improve. This is because you will be rewarded for patience, and as you start to see your patience pay off over time, you will want to maintain it.
It is the initial stages of developing a sniper-like Forex trading mindset that most traders fail at, usually because they do not understand the power of patience and discipline. It tends to feel better to be a machine-gun trader because you feel powerful and “in control”. The problem with this mindset is that you can never control the market, in fact, the more you try to control the Forex market the more it will actually control you which will end up triggering negative emotions. The only thing you CAN control is yourself by learning to trade like a sniper, and if you do this you will significantly increase your chances of success as a Forex trader.