Things being what they are, you need to be a consistent trader who profits reliably in the financial market. To begin with, ask yourself this: Do you have a consistent personality? You basically can't accomplish the previous without first building up good trading habit.
Today we going to exercise about certifiable mental points of view that forex brokers use to succeed in stop hunting you. I'm demonstrating what 5% of the successful trader think and how do they overcome the emotion on trading.
I'm going to lead you the thought processes and mental routines that you need to start practice and master it. The key for you is to stick to your trading rule!
The different between a new trader and a professional trader, is their trading mentality. In fact, the difference between successful people and those who are struggling in their life is just mentality. To be clearer in order to be successful trader is not about how good entry you have, is how you manage your trading emotion.
Here's the secret:
1. Learn how to withdraw yourself from your chart.
Professional traders has the ability to mentally withdraw from their chart where most new traders are not yet able to do this, that is why they struggle.
You should literally feel nothing after you enter a trade. Once you get to this point, you had a much better chance at making money in the markets because you will be eliminate from emotion trading.
Starring at your charts won’t help as you cannot control the market, you can only thing you can control is yourself. You need let your trade play out.
Screen Watching Will Demolish You, you will see the chart differently and make wrong decision.
You don’t need to feel the ups and downs of the market, don’t let the market threaten you.
What happens when you watch the chart all day? You will end up having a second thought. And when you have a second thought of your trade and price starts moving against you, will either close your trade early which you might miss a big good opportunity of profit.
2. Start thinking of trading as a psychological 'war'
Forex competition is tough. You are competing against brokers, traders who have bigger capital and better trading knowledge than you.
However, you have one thing that can beat them is the desire to be the best and to play this trading game with more discipline than them, because the market works.
Don’t be unequipped
If you don’t want to blow your trading account, you need to be 100% prepared for the psychological test that is waiting every time you enter a trade.
We are not gambling in the casino. We need to be ready to take on the competition in all areas: Mind, Method and Money management.
3. Try not to let your money make you look idiot.
Money screws with everyone’s minds. Either you are making or losing money there is always be some psychological side effects that come with it. Professional traders know that to make money consistently they have to fix their emotion toward money.
The key psychological hurdles that traders face is fear of loss, fear of missing out.
Fear of loss causes traders to let small losses turn into big ones. Fear of loss also can cause traders to be afraid to trade too, letting good trades pass as they’re too afraid of taking a small loss.
Fear of missing out generally means you are chasing trades that you missed. You get angry and you are afraid of missing out on the good profits, so you jump into the market at a bad entry and this turn out to loss.
Taking too much risks per trade and not knowing where to exit the market will also lead you the same outcome of big losses.
Money management plan plays the most important part of your entire trading journey! Always bear this in mind. Only trade and invest the amount of money you could loss.
So now what is the most effective method to solve above problems:
The way to solve it is by making effort to change your trading routine and that lead you to a new, positive trading habits.
To master anything in trading, you must learn the trading skill, practice to control your emotion and repeat the pervious 2 steps. Trading is not that difficult after all.