Once a man said, "The mind is a fascinating instrument that can make or break you.”
Really, it's nothing matter that you are good at trading or something. If you do not control your mind, you are gonna lose.
Don't Miss: The real truths of forex trading.
In forex trading, there are hundreds of strategies and indicators available, and traders have optimized them every day. But what really makes them profitable after the sun goes down?
In one word, "Emotion". Yeah, you heard that right! If you are okay while losing $100 in a row. I have to say you are mature enough. Most traders lose control and again make the same mistake. Here are the trading mistakes you should avoid.
So, in this blog, we will show you how you defend yourself from making mistakes by your emotions and how it makes your career even better. Here we go -
THREE Things Make You a Winner
We found 3 things that a trader should control his emotions. The most skilled trader knows when to trade in the market and when to not. So, let's learn some--
1. Greed is Nasty
In most case scenarios, we found most traders have a greedy mentality. People are thinking that they are gonna make a profit just by placing a trade. Is that easy?
Or some traders are making trades upon their win possibilities. They are trading continuously as they are winning. But trading is not that game you play upon your luck.
It is upon your strategy and your skills.
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So, it will be better if you make trades on your own goals and confidence.
2. Break The Negativity of Losses
Professional traders have one thing in common, that is, they are not afraid of losing and do not lose hope after losing a trade.
Think, you are the best forex trader in the world right now. But it does not mean that you are not going to lose a single trade. Sometimes the market gives shocks to traders in sudden changes.
But having faith and calm will make a huge change in your trading career. Always expect the unexpected and have that mentality to forgive losses.
3. Ignore Quick Profit
Lastly, the main thing is to avoid quick profits. Sometimes, it happens that you are making profits one by one. And you believe that the ratio will continue like that.
But it is wrong!
Your profitability will come with your patience. If you look into a successful forex trader's life story, you will find a great patience story behind it. Because your patience affects your emotions. The more you keep patience, the more chances you have to win trades.
Keep The Road Clean
We also have to focus on our goods to avoid the emotion game. Here are something that we should keep in mind--
- Creating a good trading plan is fabulous. Planning a good trading plan will make you a sweet move on your performance and your emotion. It reduces the chances of loss and increases profitability. And profitability means you do not need to keep pressurizing your emotions.
- After placing your trades, you have to forget to see them. Because, if you have habits to see them, your mind can be changing while the trading charts are changing. You can be replacing the TP and SL. And this will heavily impact your trading.
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- So, after placing a trade, make sure that you put your best effort not to look at it. Because it will increase the temptation and your emotions will be hurt a lot.
- Make double sure that your strategy works better. Always try that strategy that is proven to give you the best outcome.
- This one is quite important. If you continuously win or lose three trades in a row, it will be better to stop right now. Because it is a psychological idea that you will engage the fourth trade as you are losing or winning 3 trades in a row.
And at that point, I think you will suffer a lot. As the fourth trade is not upon your strategy or skills, it is placed upon your psychological mind.
Controlling Emotions Can Be Fun
You already noticed that emotions play a vital role in forex trading. If we look back and research how people quit forex trading, then we will find a strong reason for the emotions behind this. Around 90% of traders quit forex trading at an early age.
Because they can not accept the loss. As mentioned before, if you completely control your mind and think that you will remain fine after losing your whole capital and be able to start again. I think you really learned something from this post.
Always remember, the psychology of forex trading is quite beneficial, and truly it is admirable in your profitability. Professional traders always place their trades before thinking that they can be gone the opposite.
Your temptation will destroy your skills, strategy, and also career. So, play the game quietly.