There is a certain similarity between mastering forex trading skills and acquiring driving skills. In this talk, FXCM Zhang Zhe will explain the connection between the two and how to develop sensitivity to trading signals. Let's hear from this lesson.
Forex trading analysis
Learning to drive and learning to trade forex are actually interconnected processes. First, let's look at the process of learning to drive. When learning to drive, we need to understand the traffic rules first, then learn specific driving skills, and finally continue to become proficient through practice to achieve the realm of integration of people and vehicles. Similarly, learning forex trading is a similar process. We need to first learn to recognize trading signals, just like learning traffic signals, stop when you see a red light and drive when you see a green light. In trading, we know we should go long when we see certain signals, and we know we should go short when we see other signals. At the same time, we also need to increase or decrease positions according to the signal.
Driving skills are equivalent to a series of operations such as opening and closing positions in trading, and these actions need to be smooth and consistent. Finally, we need to integrate trading techniques and rules with each other through continuous practice and cultivation to achieve a state of unity between people and markets. Therefore, the process of learning to drive and learning to trade forex is consistent.
Here, I would like to highlight an aspect that may be easily overlooked, and that is intuition. When we learn to drive to the final stage, it's actually a manifestation of intuition. In the case of gear shifting, for example, initially we need to go through a series of thought processes: retract the throttle, press the clutch, press the brakes, and engage the gear. But after a lot of practice, these actions become automated, and we no longer need to think, but directly perform intuitively. In the same way, in trading, we also operate according to signals in conjunction with trading technology. However, in the process of continuous training, we will gradually form an intuitive reaction, and after seeing the signal, we will subconsciously take action, ignoring the intermediate thinking and judgment process. This is very important in trading and is what I want to emphasize in this lesson.
Through this course, we learned that learning to trade forex has many similarities with learning to drive, and that the cultivation of signal sense is very important, and these need to be honed to achieve it.