By the time you decide to shift from a demo trading account to live daytrading currencies account, things significantly change in ways that are beyond your imagination. As a trader of currencies, this change could actually put you in stressful and frustrating situations, especially if you don’t have the right trader mindset and if you lack the skill sets necessary to achieve successful trades. You have to bear in mind that forex trading is not always a win-win situation as it follows the basic principle of having winners and losers, and if you want to become a part of the winning team it is necessary that you develop the right mindset and be able to acquire useful trading tools that would help you survive this dog-eat-dog landscape similar to how a winning athlete only sees points on the scoreboard.
One of the main solutions that you could apply in order to become successful in your trades is the use of forex trading psychology. This correlates to the ways how you see yourself as a trader and how you could maximize your strong features in order to gain leverage in the market and how you could restrain your weak points from taking control of your trades. When you truly know who you are as a trader, you would definitely know how to react on certain situations, which in the long run would help you in avoiding self-damaging actions and decisions that could significantly affect your trades.
Over the years, there are two basic emotions that have been pointed out as the cause of distractions and failures among many forex traders: fear and greed. Fear will push you to either not execute a trade even if there are already signs that it is profitable, or to close a trade prematurely without giving it the opportunity to become lucrative. Meanwhile, greed will propel you to take risky trades because of the strong desire to earn massive amounts of profits, and could also force you to facilitate more trades instead of being satisfied with what is enough for the day. Yet, these are just commonsensical problems that can be remedied by consistent trader training and the right psychology.
The right forex trading psychology is founded on making definitive assessments and being able to accept events that have already happened, and be able to learn from one’s mistakes. The best method in order to avoid the problems associated with trading is to establish a trading plan that you could stick with until the end, and be able to formulate a risk management method. By learning to master your emotions and facilitating your trades with your brain and not your heart, you won’t get confused with what is right from wrong.
Of course, the aforementioned task are easy to discuss but would be far more difficult to accomplish since not everyone has the power to identify their own weak points. Yet, you could always seek the services of a personal trading coach, who in turn could help you determine and resolve the issues you have at hand which are restraining you from maximizing your abilities as a trader. You need to understand that sometimes even the most sophisticated trader training that trading books and tutorials can provide isn’t sufficient enough for you to point out what problems you have to deal with and how you could become a successful trader in the process. In some cases you also have to gain helpful insights from another person in order for you to distinguish the right mindset that would empower you to surpass the psychological and stressful challenges associated with trading.
Basically, if you want to win at Forex trading, you need more than just a good forex trading strategy. You also need to have the right mindset that would permit you to appropriately execute the trading strategy that you have, and this is what forex trading psychology can do for you. Always put in mind that when you are trading, the market, market makers, and world events are not your enemies; rather it is yourself that you are competing with. If you lack the professional trading psychology, chances are, you would always make wrong decisions, and failure on trades might become your second nature. It is never too late to make changes, and now is the time for you to become confident about yourself and the ways you trade.
Veteran and novice traders alike could attest to the complex and stressful nature of daytrading currencies. Because of this, many traders who enter the trading market without the crucial mindset and skills set often found themselves struggling on their trades despite their consistent efforts. In order to solve these issues, it is important that you engage in trader training in order to take a trading method, establish a solid working system and forex trading psychology that would warrant your success in trading.
– Robert Jolina
