How to Digest Market Data and Use for Trading Forex

One of the paradoxes in forex trading is that self-sabotage and financial destruction play such a big part in most traders’ daily lives. In fact, there are many, many traders who get their kicks from simply playing the markets, win or lose. And it is because of this that most traders do in fact lose over the long run.

It is almost as if we humans are genetically programmed to be bad traders and the end result is that many of us have perennial struggles with the markets themselves, attaching to them, in many cases, sub conscious metaphors and even giving them human characteristics.

Of course, the market is anything but human, and in order to trade forex effectively, you need to be able to understand that simple fact. 

Depersonalizing the market

Professional traders know that the market is simply a source of information and must be treated as such. It does not have any hidden agenda or ulterior motive and is not ‘out to get you’. It does not contain painful or happy information or anything like that. Indeed, any feeling that you arrive at from trading comes from how your own mental self perceives the information. Saying that the market is wrong or stupid or too high or too strong are human attributes and are clearly incorrect, because the market as a channel of information can be neither of those things. The market just ‘is’.

Professional traders know this and therefore eliminate any human attachment to the market and try to ignore all the noise that surrounds it, whether from other investors or news organizations. Only by doing so, is it truly possible to get into the real flow of the market and begin to make all the right moves.

Getting in the flow

By eliminating any attachment it becomes much easier to get into the flow of the market and any subconscious or conscious defense mechanisms that can cause you to jump into a bad trade are automatically removed.

Staying in the flow means that a trader can remain alert to an almost endless stream of possibilities and opportunities. What this means is that a trader can take advantage of numerous opportunities without suffering any of the stress, frustration or self-sabotage that comes with trading when not in the zone.

But not only can professional traders get themselves into the flow by treating the market completely objectively, they are also able to realize when they are operating out of the flow – and they will be able to do this early. Doing so means they can scale back or stop trading completely when they are just not ‘feeling it’. This is a crucial element to successful forex trading, and proves why some traders are ‘happy traders’ and others are much more stressed. Remove the attachments to the market, manage to get in the flow and you will have a much longer and rewarding trading career.