The Investor Diary Entry #98: December 21, 2025
Improving my win-loss ratio in forex trading has been about finding a new indicator or changing entries randomly. But now, it led me to deeper questions. It has been about questioning how I think about trading itself. This process has pushed me toward developing a trading philosophy based on experience, repeated failure, observation, and reflection. This article documents how that thinking process is evolving and how it connects to building a solid forex trading plan over time.
TL;DR
This article explains how improving my win-loss ratio comes from developing a trading philosophy, understanding cause and effect in price movement, focusing on one asset, and building a structured work environment rather than relying on indicators alone.
Developing a Trading Philosophy Through Experience
A trading philosophy does not appear overnight. In my experience, it only starts forming after spending a considerable amount of time trading, and especially after seeing what does not work. When results are inconsistent, the mind naturally starts searching for answers. That search is where philosophy begins.
For me, developing a trading philosophy has been a gradual process. It continues to evolve, just like philosophies in business or life. Over the past weeks, after experimenting with different approaches and schools of thought, I realized that strategy alone was not enough. There were deeper questions I needed to answer before expecting consistency.
Understanding Cause and Effect in Price Movement
One of the most important shifts in my thinking came from reexamining indicators. Previously, I relied heavily on oscillators like the stochastic to trigger trades. I treated indicator signals as causes, assuming price would respond to them.
That thinking changed when I reframed indicators as effects, not causes. The oscillator moves because price moves. It repackages price data using a formula, but it does not drive the market. Once I understood that, my question changed from what is the indicator showing to what actually affects price.
This led me to focus on elements such as market structure, order flow, order blocks, and trading ranges across multiple timeframes. Understanding cause and effect on a chart became one of the foundational parts of development as a trader.
Focusing on One Asset at a Time
Another major change in my approach was narrowing my focus. Instead of scanning many currency pairs and applying the same plan across all of them, I decided to concentrate on understanding one asset deeply.
I chose EURUSD and committed to studying it across monthly, weekly, daily, and intraday timeframes. This approach mirrors how I treat investing. I do not invest in a business I do not understand, even if it appears profitable. I want to apply the same principle to trading.
By focusing on one asset, I can observe how price behaves, how liquidity is taken, and how structure develops over time. This focus supports my long-term goal of building a solid forex trading plan grounded in understanding rather than repetition.
Building an Effective Trading Environment
Improving results is not only about charts. I also adjusted my work environment. I changed chart colors to reduce strain, upgraded to a larger monitor, and subscribed to TradingView only when I knew I needed its features.
For years, I used free tools because I was not ready to use advanced features effectively. This decision aligns with my broader trading philosophy. Tools should support clarity and efficiency, not distract from learning. Creating a functional environment helps maintain focus and consistency.
Linking Philosophy to Long-Term Improvement
My goal is not immediate perfection. I am planning a self-training period covering an entire year to test whether my understanding improves and whether my execution reflects that understanding. This is how I intend to measure progress.
This process connects naturally to questions like how to become a successful Forex trader. Success, in my view, is not about shortcuts or signals but about developing patience, clarity, and structure over time. Education plays a role here, whether through experience or through knowing how to find Forex Trading Courses Online that support thinking rather than promise results.
FAQ
What is a trading philosophy in forex trading?
A trading philosophy is a set of beliefs and principles shaped by experience that guide how decisions are made in the market.
Why focus on one currency pair?
Focusing on one asset allows a deeper understanding of structure, behavior, and context instead of spreading attention too thin.
Are indicators Useless?
Indicators are not useless, but they are effects of price, not causes. Understanding this changes how they are used.
How does this help improve win loss ratio?
By understanding why price moves and aligning trades with structure and context, decision quality improves over time.
Is this approach suitable for beginners?
The concepts evolve with experience, but questioning cause and effect early can help avoid unrealistic expectations.
Conclusion
Improving my win-loss ratio in forex trading has become a process of thinking differently, rather than trading more. By developing a trading philosophy, focusing on cause and effect, understanding one asset deeply, and building a supportive work environment, I am working toward consistency. This journey continues, and its value lies in learning how price behaves rather than forcing results.
The Investor
Sunday 21 December 2025
About The Author
I started to look into individual stocks in January 2022. I created this diary initially for myself to track my investing progress, and second, as a place where I can share my ideas publicly, not only on stock investment, but on any venture that I start learning, such as Forex Trading, Blogging, or any other future venture that I might think of trying out.
By repeating things I learn to myself and trying to explain it to others, I help myself better understand what I am learning. Additionally, hoping that others will share their ideas and learn from each other, and lastly as an online business where some links that I share are affiliate links, and if anybody bought anything by clicking tihose links, I will get a commission based on that successful sale, which of course will not affect the price that you are buying the product or service at.
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This blog is also part of my blogging learning project. I’m using a platform to learn this part. If you are interested in it, it is called Wealthy Affiliate.
Furthermore, this site is in no way or form giving any financial or investing advice, nor is it encouraging or discouraging people to buy or sell any financial instrument. This is a personal diary in which I track my own progress and share it for informational, educational, and entertainment purposes.