Trading requires analysis and instinct. There are different ways in which different people trade, but each way requires some sort of emotional investment and some portion of technical assessment. This is one of the reasons that Apiary Fund has you review your investor profile and rewrite your trade plan as you go through the beeline to funding. Knowing when to hold them and when to fold them is not only applicable to just a poker match; in trading, you also need to know when to carry on holding some trades and when you need to cut your losses and look for a new setup.
One of the primary causes from late entries into a great setup is over-analysis. This, and a few other points that were mentioned in the Finding Your Weakest Link in Trading article, can result in smaller wins or possible losses. Having technical indicators is not all there is to trading. There are times you have to be able to look at a chart and spot an entry based on experience. This is a key reason trading should be done consistently. Certain trends may come up repeatedly, but are not shown on indicators until it's too late to get into the trade. Recognizing these patterns either from the past or a gut feeling that something is going to happen is a vital trading tool in and of itself. You can always put that slightly tighter stop loss if you're worried.
Along with adaptations that can be made to your strategy, the “gut feeling” you encounter has subliminal effects that you can't put into your trade plan or explain because they're but a forgotten memory, but your body knows it's there. While very similar to picking up on ideas and concepts that you have reviewed, these unconscious recognitions affect your trading and day to day life. Your gut is responsible for a lot of the neurotransmitters that course through your blood and brain. So, when you get that sinking in your gut or that lightness described as butterflies, those feelings change how you think as molecules are produced and circulated through your body all from a subconscious recognition of a pattern or previous event you have seen. Since you don’t consciously recognize the pattern, you cannot adjust your trade plan for it, but know that that feeling is letting you know something may be happening soon.
So many individuals describe trading the FOREX market as a complex, near-impossible field to make profits in. However, as long as you can do your analysis and also follow some instincts based off of what you know both in the markets from the charts and what you know from the news, FOREX trading is not that bad. Review what you have logged with Apiary Fund or in your own personal trading journal so that you can see your progress and improve on your strategy that you have written based on changes you have made by following gut instincts over strictly analytical reasons. And as those trade plans change mentally, it's important to update them physically. One complication that can arise in traders is when their stats drop, they look back at their trade plan to see where they deviated and if it hasn’t been updated, regaining lost progress can be all the more difficult. That's the primary reason Apiary Fund reviews your strategy with you from beginner to intermediate to advanced.