FACTORS FOR FOREX SUCCESS
Today I’m going to give you factors that will help you become a better trader. I look at the emotional elements of Forex trading, and other elements that you should pay close attention to in your trading process.
Confidence in a plan
What percentage of your exits are: at your price target at your stop loss somewhere in between the two above? If a large proportion of exits fall into option c., then you are saying that you don’t have much confidence.
Top forex traders keep score
Top forex traders know what works best for them. They don’t guess, they look at the numbers. Specifically, they record data about set-ups and their trades and then analyse that data. So, for example, they know what’s coming next.
Forex trading: If you think you are beaten
As you start trading, you will get knocked down, over and over again. You will come to learn that Forex trading is less of a sprint and more of a marathon. You need a strong mind to succeed.
Forex trading: Anchoring your emotions
During times of trading turbulence, it is essential that you are able to keep your emotions in check. This will allow you to stay in control of your processing faculties and maintain your normal levels of self-confidence.
Manage your emotional state
In your trading, there will be times when you feel totally in control and others when you feel totally dysfunctional. This can be when you are experiencing emotional states such as irritation, guilt, anger, frustration, doubt, fear or greed.
Forex trading: our perception becomes our reality
How we think determines how we act. A person who sees a glass of beer as half-full is someone who perceives a world of plenty. The person who see a glass of beer as half-empty is someone who perceives trades negatively.
4 common faults of novice traders
The 4 faults listed below arise because Forex trading is such a counter-intuitive activity. They are easy traps to fall into and very difficult to resolve. The desire to be rich In most areas of work can get in the way.
How to handle losing Trades
It’s a fact that your forex trades will be a mix of winning trades and losing trades. How you deal with both types of trades is a measure of how successful a trader you will become. When you have a losing trade, you need to learn how to bounce back.
Three Trading Losses
How many consecutive trading losses will you take before you feel compelled to correct your approach? Is it three consecutive trading losses?That seems to be the average number. And what is it that you do to correct your approach?
Feeling good about losses
You can feel good about losses if you understand that trading is a game of probabilities. First of all, you need to ensure that you have a trading edge. This means that you have a strategy that has momentum in either direction.
Motivation to Change
Many traders engage in destructive patterns of behavior which seem to enslave them. Why do they continue on the self-destruct path? It’s because the pain of continuing on that path has not yet exceeded their perceived pain of change.
Goal setting
Climbing a mountain starts with small steps, perhaps even practicing those small steps on a gym wall. To be a successful Forex trader, you also need take small steps and ensure that you are constantly learning.
Learning optimism
Do you sometimes blame your Forex trading losses on an external force? Do you believe that the Forex markets are manipulated or that brokers go stop-hunting? If you do, you are not alone. Knowing that others have the same though process, will only help you in vindicating these feelings.
Optimism
If you lost your wallet (or purse) while shopping, how would you react? Would you be a pessimist and not bother telling the police, assuming that the finder will keep the money inside. Or would you be an optimist and believe that you will get it back?
Taking steps towards goals
Most traders can identify areas to improve. However, few traders actually have a process for implementing the steps necessary to achieve the improvement.
Important goals
Imagine that a trader friend of yours has a lifetime goal of owning a Super-yacht and it is this goal that motivates their working day. If owning a Super-yacht doesn’t float your boat, it’s an impotent goal for you.
Following the Rules
Following the rules is difficult. To maintain your self-control. you need to know at a CONSCIOUS level what you are feeling and saying to yourself. It is only when you are aware of what’s going on internally that you have control over the external.
Quiet markets reveal the best traders
I used to race sailing dinghies as a young man and it was obvious that anyone could get around the race circuit when there was a decent wind blowing.
Different states produce different behaviours
People generally behave differently when they switch from one emotional state to another. Shifting from a calm state to an angry state can result in behavior that would not be normally seen.
Your trading processes
Your trading processes are the way you approach your trading. They are not something that you think about once, write down and then implement. They are actions that you develop and refine as you practice your trading.
I know that some of these thoughts weren’t flushed out, but moving forward that’s something I’ll work on, and certainly add to. Either way, thanks for reading.
