Forex Trading with a Positive Mental Attitude Much has been said about attitude, positivity and optimism in Forex trading. It is true that one's disposition while trading is very important indeed. Attitude and view point are so critical that they can dramatically impact a traders performance. Emotion and psychology can change on a dime and significantly affect what one sees and does.
A trader that misses a trade or two one
minute can easily be suddenly grow frustrated and be
compelled to go "all in" on the next trade risking
everything. Similarly, a trader who grows overly
impatient with the apparent lack of trades in the Forex
market might say "what the heck" and trade just for fun.
Develop the skill to properly control and utilize your
attitude while trading is paramount and should not be
under-estimated.
But fact remains, one of the quickest
ways to lose your capital is to take trades that are not
well thought out or otherwise executed on the 'spur of
the moment'. This is not to be confused with the quick
decision making required for scalping in the Forex
market. The critical difference lies in both the methods
taken and the step leading up to taking the trade.
This is a sure fire way to devastate your
account. We cannot deny that even for modest people the
desire to make money (read 'be right') is so strong that
it can skew ones behavior in serious ways. The way to
avoid this is by choosing trades wisely and doing so
with adequate reasoning, appropriate principals and the
right rules.
It is inconceivable that a trader would
let a loser go for 60, 70 or even 100 pips. If you do
this, then you are making a bad mistake. If you do this,
it means the decisions leading up the trade were wrong.
It is incumbent on responsible traders to not just move
onto the next trade, but instead analyze and try to find
out the reasons for the error.
If you have anything nagging or negative
factoring in on your decisions, however innocuous, you
should immediately check yourself. This is also why it
is important not to isolate yourself but to surround
yourself with like-minded individuals who can also help
evaluate your trades and their viability. Avoiding a
mental trading rut and only trading when conditions are
optimum is vital.
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