Do You Have The Forex Traders Mindset? (Part I)
Human beings are emotional creatures. It is often said that we are our own worst enemy. In forex trading, this is the ultimate truth. Most of our trading decisions are guided more by emotional than logical thinking. Our mind is capable of playing emotional tricks on us.
Emotions can work against us. Emotions can work for us. Your battles are won or lost in your mind first. Victories are won and lost in ones mind. We can get seduced into unfavorable situations by our emotions. A traders mindset is the most important ingredient of success. If you have the mental strength to control your emotions, you can become a consistently profitable trader.
You must understand this thing from the start that forex trading is not for everyone. You must ask yourself do you have a strong desire to succeed in forex trading. If you dont have the strong desire, you will end up like the majority who lose their money and never make a profit. Dont just try your luck or dabble in trading. Ask yourself do you have the passion for trading forex?
In order to become a successful forex trader, you must be highly self motivated. You must have a concrete plan of action and not be afraid of failure. Are you ready to devote a lot of time and effort into picking up trading skills and knowledge?
You need knowledge and skills in trading currencies in order to become a successful forex trader. To attain consistent success in forex trading, a huge amount of time, effort and money is required for a trader.
Are you willing to accept losses as part of trading? You are going to make mistakes while trading. Do you understand that you can suffer losses in trading? Are you willing to learn from your mistakes? Do you have a traders log that you use to reflect on each lost trade and learn from it?
Every trade needs proper planning. Dont try to rush into a trade. Many traders enter into the trade based on someone elses market analysis. Most depend on market analysis from an analyst. If the trade turns out to be a loser, most of us tend to blame the market analysis and the opinion of the analyst. It is easy to blame others.
Dont be trigger happy? Only pull the trigger when you are confident that you have done your analysis to confirm what others are saying. Is it fair to blame someone when you could have done further market analysis on your own? When you could have planned your trade in a better way, it is foolish to blame others for your mistakes.
Fear and greed are the two most dominant emotions that affect not only the individual traders but also the currency markets. In fact, these two emotions are the main drivers of the forex markets.
Fear makes you over pessimistic about a currency pair. Similarly, greed is going to make you over optimistic in thinking that a currency is going to appreciate. In nutshell, fear and greed are behind the steering wheel of the currency market. When fear takes over, the market turns bearish. When greed takes over, the market becomes bullish. - 23208
Emotions can work against us. Emotions can work for us. Your battles are won or lost in your mind first. Victories are won and lost in ones mind. We can get seduced into unfavorable situations by our emotions. A traders mindset is the most important ingredient of success. If you have the mental strength to control your emotions, you can become a consistently profitable trader.
You must understand this thing from the start that forex trading is not for everyone. You must ask yourself do you have a strong desire to succeed in forex trading. If you dont have the strong desire, you will end up like the majority who lose their money and never make a profit. Dont just try your luck or dabble in trading. Ask yourself do you have the passion for trading forex?
In order to become a successful forex trader, you must be highly self motivated. You must have a concrete plan of action and not be afraid of failure. Are you ready to devote a lot of time and effort into picking up trading skills and knowledge?
You need knowledge and skills in trading currencies in order to become a successful forex trader. To attain consistent success in forex trading, a huge amount of time, effort and money is required for a trader.
Are you willing to accept losses as part of trading? You are going to make mistakes while trading. Do you understand that you can suffer losses in trading? Are you willing to learn from your mistakes? Do you have a traders log that you use to reflect on each lost trade and learn from it?
Every trade needs proper planning. Dont try to rush into a trade. Many traders enter into the trade based on someone elses market analysis. Most depend on market analysis from an analyst. If the trade turns out to be a loser, most of us tend to blame the market analysis and the opinion of the analyst. It is easy to blame others.
Dont be trigger happy? Only pull the trigger when you are confident that you have done your analysis to confirm what others are saying. Is it fair to blame someone when you could have done further market analysis on your own? When you could have planned your trade in a better way, it is foolish to blame others for your mistakes.
Fear and greed are the two most dominant emotions that affect not only the individual traders but also the currency markets. In fact, these two emotions are the main drivers of the forex markets.
Fear makes you over pessimistic about a currency pair. Similarly, greed is going to make you over optimistic in thinking that a currency is going to appreciate. In nutshell, fear and greed are behind the steering wheel of the currency market. When fear takes over, the market turns bearish. When greed takes over, the market becomes bullish. - 23208
About the Author:
Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading stocks and currencies. Know Swing Trading. Learn Forex Trading!
posted by X - Men @ 4:43 AM
0 Comments
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home