4 Smart Fixes, Why Forex Might Be Your Best Bet, Understanding the True Strength Index (TSI)

Happy Sunday,

Welcome to this week’s edition! We’ve packed it with valuable insights to sharpen your trading edge. This week, we’re tackling how to avoid missed opportunities with four smart trading fixes, making the case for why forex might be your most efficient market, and breaking down the True Strength Index (TSI) to help you better track momentum shifts.

This week’s edition:

🧠 4 Smart Fixes

📈 Why Forex Might Be Your Best Bet

🚀 Understanding the True Strength Index (TSI)

Don’t Let Missed Trades Pile Up: 4 Smart Fixes

Even the best forex traders miss trades now and then. Maybe the setup looked perfect, but you hesitated. Or maybe you were distracted, lacked confidence, or just hit your daily trading limit. The reasons vary, but the result is the same lost opportunities.

Why do missed trades matter? Because they quietly chip away at your potential profits. Over time, these could add up to a significant amount. Worse, they can mess with your trading psychology. Skip enough trades and you might start second guessing your strategy or chasing revenge trades to make up for it. That’s a dangerous cycle.

Here are four ways to minimize missed trades:

1. Keep a Journal

Log every trade you skip why you missed it, what the setup was like, and what you could’ve done differently. This helps identify patterns and builds discipline.

2. Set Alerts and Orders

If you can’t always watch the charts, use price alerts or set pending orders. You can even automate this with a basic trading system to ensure you don’t miss good setups.

3. Reduce Position Sizes

Fear often holds traders back. Try lowering your trade size to ease the pressure. With less money on the line, it’s easier to stick to your strategy.

4. Think Long-Term

Losing trades happen. Focus on the process, not short-term outcomes. If your system works over time, trust it even after a losing streak.

Missed trades aren’t harmless. Track them, learn from them, and refine your habits. The fewer you miss, the more consistent your results can become.

Forex vs. Stocks: Why Forex Might Be Your Best Bet

Thinking of trading but overwhelmed by the 6,000+ stocks listed on major U.S. exchanges? You're not alone. In forex, most traders stick to just seven major currency pairs way easier to track.

Here’s why forex might fit your trading style better than stocks:

1. Trade Anytime

The forex market runs 24 hours from Sunday evening to Friday, no need to wait for a bell to ring. Whether you're a night owl or early bird, you can trade across global sessions.

2. Low to No Fees

Most forex brokers don’t charge commissions. They earn through the bid/ask spread, which is often tight and transparent, making forex trading generally cheaper.

3. Huge Liquidity

Forex is the world’s largest financial market, with over $6.6 trillion traded daily. That means faster trade execution and less price manipulation.

4. Go Long or Short Anytime

In stocks, short-selling comes with rules. In forex, every trade involves buying one currency and selling another, making it naturally suited for both up and down markets.

5. Less Market Manipulation

With so many participants, banks, governments, and individuals, the forex market is tough to control. Unlike stocks, where big funds can move prices, forex stays more stable and transparent.

6. Less Analyst Drama

Stock analysts can influence markets, especially with close ties to the companies they rate. Forex? Not so much. Analysts observe; they don’t move the market.

Bottom Line:

Forex trading offers flexibility, lower costs, and round-the-clock action. If you're looking for a streamlined, global trading experience, forex might be the smarter starting point.

Understanding the True Strength Index (TSI)

The True Strength Index (TSI) is a momentum indicator designed to help traders spot trends and potential reversals in the market. It moves between -100 and +100, with 0 as the baseline.

How It Works
When the TSI is above 0, momentum is considered positive suggesting a bullish trend. When it dips below 0, momentum is negative hinting at a bearish outlook.

Developed by William Blau, the TSI includes two key lines:

• The Index Line shows the momentum direction.

• The Signal Line, a smoothed version of the index, helps confirm signals.

What to Watch For
Traders use the TSI to identify:

1. Overbought Conditions – TSI is high and may signal a pullback.

2. Oversold Conditions – TSI is low, suggesting a potential bounce.

3. Centerline Crossovers – A move above or below zero can indicate a shift in trend.

4. Signal Line Crossovers – The TSI crossing its signal line may confirm trend changes.

5. Divergence – When price moves one way and TSI another, it may signal weakening momentum.

Why Use TSI?
The TSI is helpful for spotting entry and exit points, especially when combined with other indicators. It smooths out price data, reducing noise and helping traders focus on real momentum shifts.

While no indicator is perfect, TSI can be a valuable part of your trading toolbox especially when you're trying to gauge market strength or time a trend change.