I’m sure that many of you have heard about the “minimalist”. We have “minimalist” in trading, in lifestyle, in fashion (those believers wearing only one color, usually black or white), in design (for example, Apple products), etc. I think it is a current and future trend for people, where we refine what is best, most basic, most important. And this article will discuss how we use this style to trade Forex.
Personally, I have a simple life (and I’m very happy with that now. Regarding the future, not to tell in advance), and my trading style is also the same. The way I approach and the way I trade in the market is very simple. And if you think about the benefits of minimalism from life to trading, you will find them great.
With a minimalist life, you can save money by not buying miscellaneous and unnecessary things. You can also save time by eliminating unnecessary problems in life so you can have more time to spend with your family or personal interests, etc. Or you can even eliminate stress (owning fewer things makes your mind lighter and more peaceful) and gain many other benefits.
Trading is the same. You may have to sit for hours in front of a computer screen, look at a series of charts, strain your eyes with fluctuations, ache your head with reading and translating news, etc. But if you don’t want to, then this article is for you. In fact, large offices in a prime location, a series of computers and monitors, general information purchased with money, etc., are not necessary. You will not need them to become a successful trader.
Big things are not necessarily good when we trade Forex
As a first step, you need to forget the perspective of the (seemingly) professional traders. They are a large office, a large wooden table, a series of computer screens, the latest and most modern trading software or robots, etc. All you need is just ONE laptop with a free trading software (such as Metatrader 4), an effective trading strategy, and your brain.
The perspective of “professional traders” has always fascinated us, truly. These are expensive suits, gorgeous offices, big screens with technical lines, etc. They all make everything “seem” to earn a lot of money. But do they really earn a lot of money? Some people do and some people don’t.
However, there is just one thing I want to talk about. I want to be a guy sitting in my favorite coffee shop, wearing whatever clothes which make me comfortable and stylish, looking at the hustle and bustle on the street with a laptop in the front, and of course, trading – making money.
Get rid of the unnecessary and focus more if you are looking to learn and succeed with trading. If you are a little bit ostentatious and monumental, that’s okay, each of us has a living style. However, do it after you succeed with trading and understand how to make money from this market.
If you are still new, I think that you do not need to invest so much in such things. For your information, many of the top personal traders trade with only one laptop. Mr. Buffett maintains his habit of reading paper reports. He hardly uses a computer and many myths among investors often have the same style.
Personally, I used to trade Forex in monumental offices with lots of screens surrounding. But now, I make friends with a computer, sometimes a smartphone to monitor the market and decide whether to open orders or not. I find that I trade much better than before.
Have you ever thought of trying? Most of us do not take forex trading as a real career. We often come across this market and give it a try to make money from it. Then this minimalist trading style is definitely perfect for you.
Minimize what you put in the chart to maximize the trading results
We can agree on one thing: most traders lose money because they make emotional mistakes during trading (such as greed, fear, excessive hope, etc.). A trading chart with lots of technical lines plays a big part in your failure. This is like the psychology of buying more things will make you feel happier. We often have the mentality that more technical indicators will help us capture more information, and become more successful.
Do you often read about Buddhism? One of the biggest secrets to succeed in all fields of life and to pursue happiness is “the less, the better”. When we have fewer things to worry about in life, we will bear less hassle. Meanwhile, our minds will be more lucid and serene. We will become a better person, and certainly, a better trader.
Traders always think that: when they lose money, it is because their strategies and methods are not correct. After that, they will find a new “perfect” method by adding dozens of technical indicators and continue to trade Forex. They will supplement everything which makes them feel more secure. This definitely gives them greater peace of mind. But then, the time will make them realize that nothing has changed. They will still lose their money for Mr. Market. In my opinion, the key here is: more is NOT better.
You can see that trading psychology is the most important factor. Your strategies and methods are mainly based on your own trading psychology. When we trade with 10 indicator lines on the chart, we will feel confusion, contradiction, and frustration. These will lead to unreasonable orders in which you are overwhelmed by a series of emotions. And often, this is when we lose money.
Therefore, before adding any technical indicators to your chart, ask yourself: Do you really need it? Will it really help you? You should only trade with what you really need.
How to trade Forex with minimalist style
– Abandon as much as possible the indicators of the foreign exchange market, the complex robots. Use a simple chart with prices (Japanese candlesticks) as main. This helps you stay calm and focused when observing the market.
– Learn how to trade Forex with trend, levels and signal (TLS strategy). After eliminating unnecessary technical indicators, you need to learn how to trade with Japanese candlesticks. I believe this is the easiest, simplest method for you to observe and trade on the market.
– After learning about TLS strategy, you need to understand that it is not necessary to sit and watch the market all day. You can learn how to trade at the end of the day (meaning the end of the US trading session) which will suit your main job.
– Forget about trading with all currency pairs. Minimize and focus on your favorite pairs, plus the oil and gold markets. Do you remember what Bruce Lee said? “I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times.”
– Don’t worry about your forex trading room, computers and monitors, long tables, extremely detailed data purchased with cash, etc. In fact, you don’t necessarily need them. They are good things, of course, but you do NOT have to own them to make money in this market.
– Make sure your trading place is always clean, airy, and simple. Whether you trade Forex at home or at a coffee shop, keep things simple. You do not need dozens of trading books around, you just need a few reliable and useful addresses to learn (I hope this small blog is one of them).
We humans often like to store, with the psychology of “as much as possible” or “better late than never”. In fact, when we make more money, we spend more and store more. However, most of them are NOT REALLY necessary. We are caught in the cycle of consumers and the demand aka the desire for material possessions.
In my opinion, you can absolutely live a life of less anxiety, more serene without carrying too many unnecessary things. Trading is also similar.