Forex trading psychology is very important to get right!
It’s well known that 94% of all people trading the Forex at home fail. Sometimes this can often be the result of not having a good trading psychology or developing the right mindset for success. What if that was the only thing stopping you making consistent profits for a very long time – wouldn’t you want to make sure you get this right?
Here are 5 things you can do now.
1. Use the ‘3 strikes and your out’ rule. If you have 3 bad trades, take time to stop and reasses what you are doing. Go back to your trading plan and make sure you are sticking to it. It may well be that the market isn’t giving you the trades it normally does. In this case wait until it does!
2. Learn from your mistakes and don’t talk to yourself using negative language.
3. Set your trading hours and then enjoy your time away from the markets. Forex trading is pretty intense and you can run the risk of burning yourself out. Have a balance.
4. Don’t try to pre-determine the market. Yes have a strategy to deal with all eventualities but make sure you aren’t trying to control the market. It will do what it wants. You can, however, control your emotions and reactions to the market. The market will move in 1 of 3 ways – up, down or sideways and you should have a strategy to deal with them all.
5. I can’t stress enough the importance of taking your trading step by step. You won’t make consistent money over night. You may very well make a good living out of Forex trading if you learn how to do it and practise over time. Once you are consistent and confident with your strategy, you will have set yourself up with a good source of income for a long time to come.
Are there any tricks or strategies you have used successfully in your trading to control the psychology of trading? Add your thoughts and comments below!
Thanks for reading. To Your Success!