The keys to success for a trader, similar to a spider, start with patience, calmness, perseverance, and intelligence. Why are these characteristics so important?
At first glance, you might think forex trading is just about buying or selling. Buy when the price goes up, and sell when the price goes down. If forex trading were really that easy, all traders would be rich.
In reality, many traders experience margin calls. Some remain in floating positions for months because they took the wrong position. This aligns with the saying, "Live in fear, die unwillingly."
The trading funds that have been painstakingly accumulated must be left in the account without you knowing when the price will turn around.
Therefore, it is necessary to learn comprehensive trading success to avoid these risks. How to do it?
Perhaps you are interested in applying the trading principle of the spider strategy, such as:
- Keep calm and stay patient in any situation
- Never give up, even in the face of failure
- Trap your "prey" in a smart way using various tools
- Quick move when there's a chance
- Never waste energy on unimportant things
What does it mean? Check out the full explanation below.
The Philosophy of Trading Like a Spider
Although not everyone is fond of insects, some people find them creepy and fear them. Spiders, in particular, can cause fear and even Arachnophobia, an intense phobia of spiders due to their venomous bites.
However, despite this, spiders can inspire successful trading because of their positive way of life. There are many valuable lessons to be learned from this invertebrate.
1. Calmness and Patience
It's common knowledge that spiders naturally spin webs to serve as their homes and traps for their prey. However, did you know how long a spider can catch its prey? They can wait months in their webs until they finally catch their prey.
During the waiting period, spiders remain calm and patient. They conserve their time and energy so as not to waste it. Only when it's necessary will they use all their strength. So, what can be learned from this?
Being calm and the patient is crucial to successful trading. As a trader, you must be able to control your emotions in any situation.
It's important to remember that there's no perfect setup in the trading world. Even if you have designed the best setup, profit, and loss are inevitable. In various situations like this, you must remain calm and patient.
Patience is also necessary when you have entered the market. When the price doesn't form tested entry patterns, be patient and wait a few moments. Don't be tempted to open a position before your trading system confirms the right entry signals.
2. Never Give Up
Sometimes, spiders need to reconstruct their webs due to damage caused by either human activities or natural factors. If you remove a spider's web, it will reappear after some time.
Irrespective of how often the web is destroyed, the spider will reconstruct it, even larger and stronger than before, as long as it is alive.
This philosophy of spider trading teaches us to remain persistent in all situations, even when the market appears unfavorable. Giving up after a single loss is not an option.
Like a spider's web, you meticulously create a trading plan, pouring in all your efforts and hard work. However, when this plan falls apart, avoid dwelling on it for long and restart with determination. Be resilient like a spider.
If the market seems harsh, it is okay to take a step back but never abandon trading entirely. Feeling disappointed and down is normal, but do not let it drag you. One crucial lesson for successful trading is that successful traders never give up.
3. Clever Trapping Tactics
Spiders are creatures of efficiency. They don't waste their energy chasing prey but rather wait patiently in their webs for their prey to come to them.
Spiders strategically build their webs in locations where they know they can catch the most prey. Traders can emulate this intelligence. In the spider trading system, traders can learn to be patient and efficient.
Instead of aggressively pursuing the market, traders should wait for a tested signal, such as price action, with confirmation from technical indicators.
When the price pattern indicates a favorable opportunity for entry, traders should immediately execute the order. It's important always to prioritize money management and a pre-determined risk-reward ratio.
The spider trading system also applies to placing pending orders at key support or resistance levels. These levels are crucial points in price movements that determine whether support or resistance levels are successfully tested.
4. Not Wasting Opportunities Right in Front of You
Trading like a spider may teach calmness and patience but don't overlook opportunities right before you. If there is a chance to move forward, execute it immediately, like a spider that pounces on its prey as soon as it falls into its trap.
For instance, if the price is moving toward your position and supported by indicators and price action, consider using the Pyramiding strategy. This strategy can significantly increase profits earned in a snap under specific conditions.
You can add another entry to a position currently floating in profit without closing the initial position. You can add one or two more positions that continue to rise (Buy) or fall (Sell).
Spiders have evolved over thousands of years, learning to take advantage of food when it is available. They rush to fill their stomachs as much as possible, as they don't know when the next meal will come. When there is an opportunity, they never waste it, not even for a second.
Trading like a spider follows this habit. If there is an indication that the current price movement trend is still very strong, take advantage of it by adding a position. However, ensuring the continuation of the trend's strength is confirmed by technical or fundamental indicators.
5. Don't Waste Energy
Have you ever observed a spider strolling or wandering around its web? Most likely not, as they remain still in one spot until their trap catches prey.
Considering the spider's behavior, why should you exhaust yourself by chasing the market when opportunities will eventually arise on their own? Forex trading demands thinking ahead, at least one or two steps, to conserve energy and increase efficiency.
Ask yourself, how frequently do you check your daily trading chart? Is it 10 times, 20 times, or more due to constant monitoring? Don't you feel that this drains your energy and psychological state? Constant monitoring of the trading chart will only waste your time and energy.
The urge to continuously monitor the trading chart usually affects traders who do not use a stop loss. If you have already set it, why worry even if the price moves in any direction?
Therefore, stop loss plays a significant role in achieving successful forex trading. With a stop loss, you can implement a calculated money management plan to avoid significant losses in your trading account.
Instead of staring at the trading chart, it is better to establish a proven trading strategy from the beginning, position stop loss, and take profit at strategic points.
The concept of spider trading teaches us that patience is the ultimate key. The lifestyle of spiders is highly applicable when learning to become a successful trader.
As a trader, it is crucial to exercise patience in any situation, remain composed, and to develop the best possible trading system. Avoid reckless behavior that may prove harmful to oneself.
Once an opportunity arises, it should be executed without any. In the event of failure, one should rise again and start over from the beginning, just like a spider.
The key to successful trades, as a spider does, is good trading psychology. Traders can learn this by reading psychological books that are available in the markets.