\n\t![\"pics-new15\"](\"http:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2017\/10\/pics-new15.png\")
\n<\/p>\n
\n\tWhy do so many fail in this business?<\/strong>
\n<\/h3>\n\n\tA successful trader’s toolbox carries a wide array of tools. Why traders fail to achieve their goals likely comes down to the following:\n<\/p>\n
\n- \n\t\tThe NEED to win and be right all of the time.\n\t<\/li>\n
- \n\t\tFailure to apply sound risk and money management principles.\n\t<\/li>\n
- \n\t\tHaving little understanding of trading psychology.\n\t<\/li>\n
- \n\t\tNot having a trading plan.\n\t<\/li>\n
- \n\t\tNot following your method’s rules.\n\t<\/li>\n<\/ol>\n
\n\tA way forward<\/strong>
\n<\/h3>\n\n\tWhat we’re about to introduce is not new, but it does offer traders a solution to help fix point five noted above. As a matter of fact, we’ve come across numerous traders who adopt this method successfully.\n<\/p>\n
\n\tTo help avoid confusion, we’re going to explain using an example…\n<\/p>\n
\n\tLet’s say that trader A’s strategy is comprised of the following points:\n<\/p>\n
\n- \n\t\tSupply\/demand.\n\t<\/li>\n
- \n\t\tPsychological whole levels (1.32 etc.).\n\t<\/li>\n
- \n\t\tTrendline support\/resistance.\n\t<\/li>\n
- \n\t\tRSI divergence.\n\t<\/li>\n
- \n\t\tIn line with the immediate trend.\n\t<\/li>\n
- \n\t\tH1 timeframes and above.\n\t<\/li>\n
- \n\t\tOnly major currency pairs.\n\t<\/li>\n<\/ol>\n
\n\tHow difficult can it be to follow this? Simply wait for all 7 points to converge and pull the trigger. Remove the financial aspect, and, we’re sure you’ll agree, it would be a relatively simple method to follow for just about any reasonably skilled technician. Since trading involves real money, however, and us humans being the emotional mammals that we are, following these rules can become surprisingly difficult.\n<\/p>\n
\n\tLet’s look at a setup that recently formed on the EUR\/USD H1 chart (see below) that boasted the following confluence:\n<\/p>\n
\n- \n\t\tTrendline support.\n\t<\/li>\n
- \n\t\tA nice-looking demand area (see red arrow).\n\t<\/li>\n
- \n\t\tA round number (green arrow).\n\t<\/li>\n<\/ul>\n
\n\tWhat it lacked, according to the method printed above, was CLEAR RSI divergence and not in line with the immediate trend.\n<\/p>\n
\n\tDespite the setup not fulfilling trader A’s criteria, it worked like a charm. Price even printed a fresh high! Assuming that you were trader A for a moment, would you have taken the trade knowing that it did not satisfy all of the rules? Reading this article in a relaxed state the answer, we hope, should be no. But, say you had recently suffered two losses and had a good feeling about the setup, would you have taken the trade then? Maybe? What about if the setup was trading with the immediate trend but still lacked RSI divergence?\n<\/p>\n
\n\tA way forward<\/strong>
\n<\/h3>\n\n\tWhat we’re about to introduce is not new, but it does offer traders a solution to help fix point five noted above. As a matter of fact, we’ve come across numerous traders who adopt this method successfully.\n<\/p>\n
\n\tTo help avoid confusion, we’re going to explain using an example…\n<\/p>\n
\n\tLet’s say that trader A’s strategy is comprised of the following points:\n<\/p>\n
\n- \n\t\tSupply\/demand.\n\t<\/li>\n
- \n\t\tPsychological whole levels (1.32 etc.).\n\t<\/li>\n
- \n\t\tTrendline support\/resistance.\n\t<\/li>\n
- \n\t\tRSI divergence.\n\t<\/li>\n
- \n\t\tIn line with the immediate trend.\n\t<\/li>\n
- \n\t\tH1 timeframes and above.\n\t<\/li>\n
- \n\t\tOnly major currency pairs.\n\t<\/li>\n<\/ol>\n
\n\tHow difficult can it be to follow this? Simply wait for all 7 points to converge and pull the trigger. Remove the financial aspect, and, we’re sure you’ll agree, it would be a relatively simple method to follow for just about any reasonably skilled technician. Since trading involves real money, however, and us humans being the emotional mammals that we are, following these rules can become surprisingly difficult.\n<\/p>\n
\n\tLet’s look at a setup that recently formed on the EUR\/USD H1 chart (see below) that boasted the following confluence:\n<\/p>\n
\n- \n\t\tTrendline support.\n\t<\/li>\n
- \n\t\tA nice-looking demand area (see red arrow).\n\t<\/li>\n
- \n\t\tA round number (green arrow).\n\t<\/li>\n<\/ul>\n
\n\tWhat it lacked, according to the method printed above, was CLEAR RSI divergence and not in line with the immediate trend.\n<\/p>\n
\n\tDespite the setup not fulfilling trader A’s criteria, it worked like a charm. Price even printed a fresh high! Assuming that you were trader A for a moment, would you have taken the trade knowing that it did not satisfy all of the rules? Reading this article in a relaxed state the answer, we hope, should be no. But, say you had recently suffered two losses and had a good feeling about the setup, would you have taken the trade then? Maybe? What about if the setup was trading with the immediate trend but still lacked RSI divergence?\n<\/p>\n
\n\tHow difficult can it be to follow this? Simply wait for all 7 points to converge and pull the trigger. Remove the financial aspect, and, we’re sure you’ll agree, it would be a relatively simple method to follow for just about any reasonably skilled technician. Since trading involves real money, however, and us humans being the emotional mammals that we are, following these rules can become surprisingly difficult.\n<\/p>\n
\n\tLet’s look at a setup that recently formed on the EUR\/USD H1 chart (see below) that boasted the following confluence:\n<\/p>\n
- \n
- \n\t\tTrendline support.\n\t<\/li>\n
- \n\t\tA nice-looking demand area (see red arrow).\n\t<\/li>\n
- \n\t\tA round number (green arrow).\n\t<\/li>\n<\/ul>\n
\n\tWhat it lacked, according to the method printed above, was CLEAR RSI divergence and not in line with the immediate trend.\n<\/p>\n
\n\tDespite the setup not fulfilling trader A’s criteria, it worked like a charm. Price even printed a fresh high! Assuming that you were trader A for a moment, would you have taken the trade knowing that it did not satisfy all of the rules? Reading this article in a relaxed state the answer, we hope, should be no. But, say you had recently suffered two losses and had a good feeling about the setup, would you have taken the trade then? Maybe? What about if the setup was trading with the immediate trend but still lacked RSI divergence?\n<\/p>\n
![\"PIC-1\"](\"http:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2017\/10\/PIC-1.png\")
<\/a>\n<\/p>\n