You Need A Forex Traders Mindset (Part I)
Most of our trading decisions are guided more by emotional than logical thinking. Our mind is capable of playing emotional tricks on us. Human beings are emotional creatures. It is often said that we are our own worst enemy. In forex trading, this is the ultimate truth.
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.
Forex trading is not for everyone. Do you have a strong desire to succeed in forex trading? You will end up like the majority who end up losing their money if you just want to try your luck or dabble in trading. Do you have the passion for trading forex?
You must be highly self motivated in order to become a successful forex trader. Are you ready to devote a lot of time and effort into picking up the trading skills and knowledge? You must have a concrete plan of action and not be afraid of failure.
You cannot succeed without knowledge and skills. If you want to succeed at anything, you should immerse yourself in that thing. Learn every nitty gritty. This is the only way to succeed. So 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.
But is it fair to blame someone when you could have done further market analysis on your own. It is foolish to blame others for your mistakes when you could have planned your trade in a better way. Dont be trigger happy? Only pull the trigger when you are confident that you have done your analysis to confirm what others are saying.
Fear and greed are two demons that are going to haunt you in every trade. Fear and greed are the two most important and dominant emotions that affect not only the individual traders but also the currency markets. A trader is constantly under the influence of fear and greed when trading. Can you be greedy when others are fearful? Do you need to be fearful when others are greedy? In fact, these two emotions are the main drivers of the forex markets.
Fear and greed are behind the steering wheel of the currency market. Fear makes many traders like you over pessimistic about a currency pair. They start the selling frenzy. Similarly, greed is going to make many traders like you over optimistic in thinking that a currency is going to appreciate. Greed starts a buying frenzy. It develops a bubble based on the irrational exuberance. It is inevitable that this bubble is going to burst. When greed takes over, the market becomes bullish. When fear takes over, the market turns bearish. - 23200
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.
Forex trading is not for everyone. Do you have a strong desire to succeed in forex trading? You will end up like the majority who end up losing their money if you just want to try your luck or dabble in trading. Do you have the passion for trading forex?
You must be highly self motivated in order to become a successful forex trader. Are you ready to devote a lot of time and effort into picking up the trading skills and knowledge? You must have a concrete plan of action and not be afraid of failure.
You cannot succeed without knowledge and skills. If you want to succeed at anything, you should immerse yourself in that thing. Learn every nitty gritty. This is the only way to succeed. So 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.
But is it fair to blame someone when you could have done further market analysis on your own. It is foolish to blame others for your mistakes when you could have planned your trade in a better way. Dont be trigger happy? Only pull the trigger when you are confident that you have done your analysis to confirm what others are saying.
Fear and greed are two demons that are going to haunt you in every trade. Fear and greed are the two most important and dominant emotions that affect not only the individual traders but also the currency markets. A trader is constantly under the influence of fear and greed when trading. Can you be greedy when others are fearful? Do you need to be fearful when others are greedy? In fact, these two emotions are the main drivers of the forex markets.
Fear and greed are behind the steering wheel of the currency market. Fear makes many traders like you over pessimistic about a currency pair. They start the selling frenzy. Similarly, greed is going to make many traders like you over optimistic in thinking that a currency is going to appreciate. Greed starts a buying frenzy. It develops a bubble based on the irrational exuberance. It is inevitable that this bubble is going to burst. When greed takes over, the market becomes bullish. When fear takes over, the market turns bearish. - 23200
About the Author:
Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading stocks and currencies. Know Swing Trading. Learn Forex Trading!
posted by X - Men @ 5:24 AM
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