Using momentum as a trading strategy but prices have to move
I haven’t blogged is such a long time until recently I’ve been getting pings of readers liking my old posts, which got me thinking what happened to my momentum in blogging and setting up Smart Casual Trading™ in the first place.
Linking it to trading, using oscillators or momentum indicators is one of the many ways of trading. The thing is, you need prices to move. You need force. And this force is provided by liquidity, traders entering and exiting the market at various prices, herd mentality, trading psychology, greed, fear, all these leading to rational and irrational actions that result in action: Buy or sell.
These actions create the force to push prices up, down, sideways, and with the movement of prices, comes momentum, which I’ve mentioned many times, is simply an indicator, which is always, always dependent on price movements.
In simple terms, if there is no price movement, no force, no action, there will be no momentum.
In 2017, I made enough profits to match my previous full time salary. To me, that is success, and achievement, a goal that I aimed for.
The flip side to that, is on reflection, this success came about from simply doing the same things over and over again, recognizing what works, reflecting on what doesn’t, and realizing mistakes, and taking action on those mistakes.
The nagging thought at the back of my mind, is whether this loss of momentum, of a force to try new strategies, test the unknown, venture and expand into what I wanted to be a successful project in Smart Casual Trading™, will result in my failure.
Failure to grow.
Sure, profits are still being made, the account is growing. But what about Smart Casual Trading™? I reflect now that, because I have succeeded in making consistent, sustainable profits that can cover the costs of living and more, I have lost the momentum in pursuing my other passion: Coaching and education.
Momentum needs a force. A call to action. And, action itself.
I am apparently considered an “established” and “expert” trader. I don’t proclaim to be one myself, I consider myself just a regular guy who had the tenacity, to the point of desperation, to make forex trading work for myself. I had the call to action. I took the action. And I had the momentum, and here I am now, an independent retail forex trader making a full time living from trading the forex market.
What happened to the momentum to push Smart Casual Trading™?
I guess, I have to say at this point..
Thank you to those who have chosen to follow my blog. You are the calls to action for me.