Not everyone plays baseball that trades Forex but they have a lot in common. To become a good trader in Forex you have to think like a good hitter. Good hitters have a “best” pitch to hit. They also have a pitch that is “almost best” and then it goes down from there. In baseball much depends on the circumstances. If the pitcher throws a strike on the first pitch and again on the second, as a batter you are not going to see the pitch you are looking for. However, if you are a good hitter you are going to do everything in your power to stay alive by fouling off pitches that are close to the strike zone and by trying to make the pitcher throw some balls.
Pitching and hitting duels are part of baseball lore. It is what makes the game special. Forex traders can learn a lot from this kind of transaction.
The first lesson a trader should learn is that they don’t have to swing at the first pitch. In other words, waiting for the right pitch is important. But what is the right pitch?
That is the second lesson and it may take some time to develop. Traders need to develop their trading “game” until they know what kind of trades that they trade best. To do this a trader needs to explore the world of trading to determine what kind of trader they are. That will be determined by when they are available to trade. This is not much different then where batters are placed in the lineup and what they are expected to do when they get to bat.
If you trade in the Asian time zone, you will probably develop a different trading style than someone trading in the London or New York time zone. Regardless of where and when you trade you need to develop 2 or 3 trades that you recognize; trades that repeat themselves.
Again, when the count is 3 and 1, the batter is looking for a particular kind of pitch from the pitcher. Whatever that pitch is, he needs to learn how to hit it. Forex traders should learn to recognize certain conditions and understand the probability of what is most likely to occur.
To improve your trading in Forex you need to learn what your best pitches are and then stick with those pitches until you can hit them well enough to be a top trader.