To be the 007 of the Forex world we need to think more like the MI6 agent. It’s also no wonder that the traders who are making millions are as secretive as MR Bond himself.
In this article we will take a look at why it is that James Bond would make a good Forex trader and how we can mimic his character traits to improve our own trading. It’s time we acquired that license to print money.
One’s mentality is as important as the system you trade so lets see how we can add the 007 touch to your trading mentality.
Every Bullet Counts
The marketplace is a warzone; traders are constantly fighting with each other all around the world to buy and sell currencies at the best possible prices, and some will even deploy devious tactics to accomplish this.
To give ourselves a better chance of survival we need to think more like James Bond during a firefight. Rather than spray & pray he makes each shot count and waits for the right moment to do so.
Bond makes every bullet count and we as traders also need to make each trade count. Jumping into the markets with a machine gun blazing, firing off trade orders with no real aim, will not get you anywhere.
This is a classic example of overtrading and will bring a swift death to your trading account. Instead, wait for a good trading signal and use techniques like retracement entries to nail your trade entry price.
Load your gun, lay still, wait and then shoot when the right opportunity arises.
The Tools of the Trade
Q supplies the gadgets from a laser shooting watch to a car that can take a dive to 007. Each gadget has its purpose and the right time. You cannot use a laser underwater and you cannot use a diving car to fly. They need to be deployed at the right time and in the right circumstances.
Let’s have a look at some of the trading gadgets available to traders.
There are many gadgets available in the trading industry, the most popular of them being Forex indicators.
Indicators help a trader make trading choices by plotting graphs on the chart, which are based on mathematical formulas. They can even alert the trader automatically to buy and sell signals.
Unfortunately indicators lag and influence a trader’s timing and judgment. An indicator is equivalent to handing Bond an unresponsive gun where it fires a few minutes after the trigger was pulled. Useless!
Trading robots are computer programs that monitor chart data and follow a logical set of rules to make trading decisions. When attached to the charts, they will trade on your behalf.
Trading robots have an extremely low shelf life and are usually very poorly designed. There are no known trading robots out there that produce consistent trading results over an extended period of time, we are however familiar with a few robots that will make lite work of turning you bankrupt pauper!
Bond is no cyborg from a sci-fi movie, he uses his own wits and judgments with every encounter. His actions are not programmed and will always remain in control just like a real trader should be.
The price chart is all bond needs to be successful at full time trading. The price chart offers the raw ‘right here right now’ price movements where the trader can interact with the market in real time.
Trading directly from price charts is very effective and profitable. The technique of trading straight off a price chart is known as ‘price action trading’ and definitely would be the weapon of choice in the markets for James Bond.
Price action trading would allow bond to shoot with deadly accuracy, time his moves with the market as the chart events unfold in real time. Because the price charts are non-lagging, bond always will have the option to pull out before he takes a bad hit.
Charm the charts
No James Bond will be a James Bond without a sexy lady offering that challenge by playing hard to get.
Mr. Bond is a ‘chick magnet’ and he usually gets what he wants. It may not always be easy and he may have to take out a few dangerous thugs, dodge a few bullets and disarm a weapon of mass destruction.
No matter what, Bond gets the job done by avoiding emotional mistakes and following a plan. He reaps the rewards at the end.
Trading has its associated risks involved, but if you follow an effective risk management plan and remain emotionally detached, you will reap the rewards.
If you‘re giving up too early, you will never have a sunset moment with a long legged blonde from paradise city.
This goes for the ladies too, Mr. Bond is surely eye candy and losing the man before the kiss is like pulling out of a trade to early and then watching it take off without you.
Making consistent profit is just like getting the lady. Nothing is sexier than the profits you’re going to make by being patient and not letting yourself getting emotional.
Take a hint from 007. Cut the losers at the appropriate time and let the profits run for a cocktail in a hammock under a sunset sky with Miss. sexy and Mr. Bond.
Know when to take risks
Risk has rewards and you cannot experience the thrill if you don’t take a swim with the sharks. Mr. Bond drives at ridiculous speeds to get away from his enemy in a car armed with all manner of trinkets.
The reason he survives so well is because he knows exactly the right time to take risks to outsmart his pursuer. His mind set is of such nature that he can see risk, prepare himself for it and then go for it.
Just like the everyday life of a secret agent, trading is risky and there is a right time, and there is a wrong time to take risks. You wouldn’t see James bond trading the non-farm payroll release without a stop loss; He might as well turn his gun on himself.
Bond always has a backup plan to get out of risky situations with the least amount of damage and always uses a stop loss to get out safely.
Trading Forex has a lot of risk on the pocket but very few know how to control it. James Bond would always make use of a stop loss. It’s alarming how many traders don’t deploy stop losses with their trade orders.
Trading without a stop loss is stupid, irresponsible and will not get you a 007 trader status.
Adapt to change
James can adapt to any situation and it is closely related to our risk section.
James adapts to the moment and is more flexibility than a slinky in a tumble dryer. He changes color like a chameleon and mold’s to his surrounding like water. It’s these ninja tactics that gets him out of a bad situation as quickly as possible. It’s also this skill that finds him opportunity.
We as traders need to adapt to market conditions. The markets are dynamic and are always changing; it’s important as a trader to keep up and adapt to change in these markets.
When the market dynamics shift we need to adapt our Forex trading strategy to suit. The rewards will follow if we can react like a cat after falling from a height, landing on all fours.
As you can see, we can be a 007 on our own playing field. We may not run around with a Beretta picking off baddies or drive around in an Aston Martin with a blonde on your lap, but we can see things other traders can’t.
We are the traders that wait for others to lose and we react, adapt, take risks and do this as accurate as James bond with a sniper rifle. Use these skills to make you a better trader. We “shake” the markets and never “stir” because we have a license to trade.
In our Price Action Protocol trading course we show traders how to trade with deadly accuracy. Use price action to take advantage of low risk, high probability trade setups and how to apply these skills to variety of market conditions.
For more information on our Price Action Trading course check out the Price Action Protocol information page.