Traders Mindset (Part I)
Can you control your emotions? Can you behave like a robot? Certainly not! Human beings are emotional creatures. Our mind is capable of playing emotional tricks on us. 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.
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?
Forex trading requires a lot of self motivation and a strong desire to succeed. In the beginning you may not be able to make many winning trades. You must be highly self motivated in order to become a successful forex trader. 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 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.
Do you understand that you can suffer losses in trading? Are you willing to accept losses as part of trading? You are going to make mistakes while 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?
Most of the new traders read some market analysis from an analyst. They enter into the trade based on that market analysis. Most of us tend to blame the market analysis and the opinion of the analyst if the trade turns out to be a loser. 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 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 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. - 23305
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?
Forex trading requires a lot of self motivation and a strong desire to succeed. In the beginning you may not be able to make many winning trades. You must be highly self motivated in order to become a successful forex trader. 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 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.
Do you understand that you can suffer losses in trading? Are you willing to accept losses as part of trading? You are going to make mistakes while 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?
Most of the new traders read some market analysis from an analyst. They enter into the trade based on that market analysis. Most of us tend to blame the market analysis and the opinion of the analyst if the trade turns out to be a loser. 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 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 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. - 23305
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 Mr. Forex at
5:24 AM
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