Principles of success
I think many of traders are too much restricted with fundamental and technical analysis. As a trader, most challenging business in the world, one has to educate himself in strategic and tactful leadership. I would like to share one of the middle age principles that established by samurai, Miyamoto Musashi who lived over 350 years ago in 1643.
Later the book was adopted to business language by Donal G. Krause His approach and strategies was studied effectively by western and modern Japanese competitive businesses.
These tactics are based on seven principles of competitive success where it is applicable to any business including forex trading.
These principles are:
1. Ordered Flexibility
The ideal of ordered flexibility is summed up in the concept of “positioning without position”. It means basically, preparation, assessment and observation of current condition and readiness to act and respond easily to changing environment. In forex, we have to do our homework properly before the trade execution.
Must be well prepared for the windows of opportunities with patience, order and flexibility. Take the moment of advantage. In forex, it basically means, plan the trade and when opportunity comes trade the plan.
It is basically means gathering information and know the situation before mobilizing your action. In forex, one has to make both fundamental and technical analysis, know the positioning of bigger institutions and know where the money flow is directed.
Based on the resources, environmental situation make decision of strategy like offensive, defensive or neutral. Know the dynamics. In forex, it means based on the current situation, choose the appropriate strategy whether shorting, buying or range trading.
Train yourself to be calm and observant. In forex, it means be free from fear and greed. Do not excessively use leverage exposing yourself to the risk.
It is ability to focus and feel the rhythm and use the competitive advantage of environment.
Action must be taken at the right time.