Harmony trading system
Harmony, as defined by dictionary. There are so many different things that can cause us to lose money in the market, how do you pinpoint the exact reason you are losing money as a trader or perhaps not making as much as you would like?
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The answer to this question came to me in a moment of clarity the other day as I was reflecting on some of the seemingly random moves in the market recently and why so many people seem to struggle so much with making money trading.
Something that you probably do not think about often enough as you trade, is that your trading strategy gives you a randomly distributed trading edge.
This means that your trading strategy provides you with a random distribution of winners and losers, and rather than being afraid of it, you must embrace this randomness if you really want to make money in the market. This is really the only explanation for why a trader would so something like risk more than they are comfortable with losing on a trade, trading without a stop loss, moving a stop loss further away, etc.
Out of trades, you could theoretically have 50 losers in a row and 50 winners, unlikely, but possible. The forest being the larger series of trades and the trees being each individual trade. We have the most control over our trades before we enter the market and while we are setting up the trade parameters, once the trade is on however, much less is in our hands.
Thus you have to trade with this reality in the front of your mind all the time, otherwise you will start to conjure up ideas and beliefs about the market that might seem very real and significant to you, but to the market they are irrelevant and nonexistent.
It helps to think of the market as a neutral entity that is unaware of you, your feelings, your life or anything about you. Your job as a trader is to analyze the market as objectively as possible and trade in harmony with what it is doing at any given point in time.
Instead, they do the complete opposite by putting pressure on themselves to trade way too frequently and they go looking for trade signals even if the market is not in a state that is worth trading.
Fighting against the market will only result in you losing money. If you are afraid of something, you tend to attract it to yourself. The bear can innately sense that you are afraid of it, and that causes him to pursue you.
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Whereas, if you just pretended that you were not afraid even though you would be , the bear might just sniff around you and then walk away. In the market, traders tend to attract losses to themselves because they are so afraid of losing money that they try to fight against the market, rather than trading in harmony with it, as we discussed above. It is important to not be afraid of losing money in the market, because as a trader, losses are part of the game.
Just like with the bear example, even though you might be afraid, you cannot behave like you are, because it will have dire consequences on your trading account if you do. The best ways to extinguish your fear of losing money in the market, is to manage your risk properly and only trade when your trading strategy is clearly telling you to.
Please consider the following undeniable facts about trading:. No matter what strategy or system you trade with and no matter how big or small your trading account, losses are a part of trading. If you want to be a successful trader you will need to check your ego at the door.
As I began to mention point 1 above, since you WILL have losing trades and since you CANNOT know which specific trade will be a loser and which will be a winner, your job is to REMEMBER THIS POINT and trade with it in mind.
However, as soon as you lose the ability to regulate your emotions in between trades, you begin to give up the advantage that you have of objectively deciding when to trade and when not to trade. You cannot force your will upon it. If you have a solid trading edge, you should stick to it and let it play out. Most of the time, interfering with trades is simply a vain attempt to control the uncontrollable market. Work on controlling yourself by controlling your risk per trade and by managing how much you trade, i.
This whole article can be summed by simply saying that you should stop thinking so much when you have a trade on.
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You were far more objective and clear-thinking before you entered the market, so just remember that, and keep in mind that you never know what the market will do for sure. These two facts combined, mean that you are probably only hurting your chances of making money in the long-run when you move around stops and targets or enter multiple positions, etc. All you need to do is find the trade signal, execute and then relax. Stick to the plan you had BEFORE you entered the market, because as I just mentioned, that is when you are most objective and less emotional.
Remember, each trade is just another execution of your trading edge. If you have a signal at a key level , calculate your risk and potential reward, put the trade on if you want to and walk away for a while. Many traders find the signal, enter the trade and then immediately freak out and sabotage their trading efforts. The easiest way to manage your trades is just to set and forget them.
The best thing to do as a beginner or as a struggling trader is simply to master an effective trading method like the price action strategies I teach in my trading courses and then wait for the market to give you an entry signal, set up the trade and let the market take its course without your interference; also known as trading in harmony with the market.
Thank you very much. Thanks for that great lesson Neil…I am now psychologically armed to the teeth for all future trading!! The reason they think this way is because they have not yet understood or accepted the fact that the market will do whatever it chooses…..
A fact i always seem to forget.. I HAVE TO BEAT THIS URGE! Thanks for the lesson learned from this article, truly we just have to be in harmony with the market. I look forward to your weekly letter!
Thanks to you I am finally becoming a disciplined trader. Thanks Nial,although i have been very impatient with my trades i have learnt my biggest lessons and what you have just written is very true. I will appreciate it if write an article on how not to over trade and what time is best to enter trades. This is what I have been trying to get across to my Dad. He has a bad habit of setting a profit goal but when the trade sours he convinces himself that the trade will turn around if he just waits a bit longer.
But the hole getting slowly bigger and bigger. It will give you the signal that what was technically analyzed as a good trade in fact is starting to sour. When you expect a London rush and it seems to start but sputters twice should we convince ourselves that the third push will be a charm? I have a twist on your crocodile tradegy hat is effective in building profit.
But there is no way were gonna pocket big bucks on every single trade. So build small steps at a time and when the account grows, double the contracts. Nial is simply the best anywhere in the world. I think the planet too and beyond. I so look forward to his articles each week. Still this is a challenge to me but thanks for your guidance and will definitely start using Stop loss. Not used before due to fear of losing and yet lose much at the end of the trade.
I initially had losses and wins but over my first year of trading forex I lost all of my margin capital. Recently I have been trading foex again with an attitude of the market will do as it does and I need to pick and choose where and when to get into trades, and to stop worrying excessively over losses but just to try to accept them and minimize them and to also accept wins and to try to maximize them.
Whether we woory or not, we are still going to win and lose in forex trading and in life. Somehow I have been able to cut way down on my fear and worry levels by accepting reality and by doing the best that I can inside that inevatable fact and syndrome. And this alone has allowed me the extra freedom and energy to focus far better on my trading. Worry takes a lot of energy and blocks clear and rational common sense thought.
Amazing — seeing the market as it really is — very random with specific more probable opportunities to profit, and by somehow not worrying to worry nearly as much , I have acheived far better results with my forex trading. To be in harmony with the market one needs to be in harmony with oneself and with the random chopiness that is so prevalent in the market.
Relax and go with the flow, mindful to choose your best probable trades and to manage risk and lot size appropriately. This article isperhaps one of the greatest truths that I have ever seen expressed. Price action is absolute with your commitment to help me and others I am forever greatful.
Harmony in the markets could so mean to be in harmony to the self. The same things over and over throughout the web site till they become second nature by reading and practicing, reading and practicing. Thanks Nial, you are a gem with these lessons. Have you ever thought about writing a book on the subject , I know you would be very successful.
Your support is unmatched anywhere on this planet! Great article, the market is a very choppy state since august. Again Nials thank you very much. I will trade in harmony now. I am practicing patients in price action trading.
Thanks for the article. I have my master plan to execute once I learn the patients action trading then I will move to price action trading. Your daily chart philosophy is very true. It took me a while to understand and trust it. But for the last 2 months have started to see big change in my trading in terms of profit. Regarding the above lesson, u just touched my weakness of adjusting entries and most of time I end up losing and was actually correct on first time.
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Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results. How To Trade In Harmony With The Market By Nial Fuller in Forex Trading Tutorials 54 Comments. Please consider the following undeniable facts about trading: Now I want to hear from you!
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