How to improve your trading mindset: 5 tips
Good trading is hard, and developing the right attitudes and values is the way to establish the behaviors and skills required for successful business. It takes years to be mentally strong.
You must swim upstream against your emotions, fears, feelings, and unconscious habits which undermine your success without a profitable and effective mindset in forex trading. As with any type of financial operation, we simply can not overestimate the role of psychology in forex trading.
Your mentality allows the largest percentage of your possibility in the game of forex trading either to lose or to win. It all depends on your mindset and how you set your mind against it.
The mentality essentially becomes the foundation on which you lay your strategies before you start trading in the forex market.
People like to take shortcuts in almost all in life but there are no shortcuts when it comes to Forex trading. It all depending on how you put your mind about the type of trading that you want to participate in.
The first thing that you need to do to build the proper forex trading mentality is to have reasonable trading expectations.
You cannot control what the markets are going to do next but you can control yourself what you are going to do.
Do you now understand, this is where you need to concentrate. Yeah, you need an edge in the Forex market, but this is where the hard part starts once you’ve identified the edge of market. The emotions of hope, fear and greed will touch your life of forex trading. And if you haven’t done the research on yourself, the consequences will turn up in your trade. If you do the work, you’ll learn and develop and improve, and that’ll represent your trading performance. Effective commercialization requires continuous development.
Here’s 5 tips to do for the NEXT WEEK:
Reduce your risk
When reducing your exposure, you will be more comfortable risking money in the forex market. Emotional control is in correlation with our risk management.
Do not hurry to take a trade, statistics show that the trades that take the most time to be prepared are thoses trades rewarding. Do not hurry when closing a trade. Sometimes candlestick patterns if they are not closed tend to create fake signals. By other side do not hurry to close a trade unless you have the right signal.
Practice flexibility cognitive
You don’t need to be attached to your setup. Try to think as a buyer and a seller at the same time and compare both results being objective.
Forget the ” I hope This will happen”
Unfortunately being a hope trader can be the worst thing ever. Instead of using the word “hope” replace it by “I see this so according to my experience, I have to do that….
If you are very anxious we advise you to practise swing trading
Most of new traders tend to trade in 5 minutes 15 minutes. Unfortunately those time frames are very aggressive. We advise you to trade in h4 h1 if you are trying to learn patience. You cannot drive a lamborghini without before learn how to drive
Thank you so much for reading this post. If you want to bring your trading to the next level, STOP struggling with psychology or price action, make sure to click the following links.