Forex is all about how to hit the next ball correctly rather than worrying about something of a distant future. Anything is possible in forex. Do not worry about what market will do. Just worry about what you will do when market reaches your “pain point” or “happy point”. You will have an easier life as a trader that way.
If you want to be a successful forex trader, the first requirement is to shift your mental attitude from a normal person to that of a speculator. It comes way before learning the basics of currency market, learning to read data and charts, and trying to perfect entry and exit skills, and so on. Entries and exits are indeed not “irrelevant” for any trader for any purpose. I hardly mean to convey anything like that when I say this. It is just that psychological aspects of trading are much more important than entries and exits, and decisive for the success or failure of a trader in the long run. Perhaps exits are more important than entries because any perfect or near-perfect entries are possible only in hindsight. All this is very theoretical and can be learnt from books, online lessons, and teachers.
The first thing as a forex Trainer that I do when I come across a new recruit wanting to start trading with or without my assistance is, I do my best to get his ego and fear in the market out of the way. Once they become aware of this and their ego and fear factor look reasonably in control, I loosen the grip as by this time they are already on their way to becoming dutiful followers of the market and survivors. That’s what I call helping them win mind over matter game.
As an aspiring trader what you will have to understand is that nobody can give you a formula or a straight jacket to fit into to get mind trained. Even the best guru and most accomplished gurus at the Ivy Leagues can’t drill it into your head and tighten the screws in a way that when you step out of the institute you will be a trained mind.
Training your mind is something you will have to tune your mind to understand and be convinced about. forex trading is very much a mind game and without having a right frame of mind, it is a losing game even before it starts. Training your mind is the first step to become a successful trader but majority of traders who are just starting out or are still new neglect this crucial part which also explains why majority of traders do not succeed in the long run.
Actually instead of reading through realms and confusing the mind with overflow of information, I’d suggest that a beginner gets hold of an experienced, successful forex trader who has been in the forex trading game for any length of time. He will be the best person to tell you how much psychology has to do with both your own performance on the trading rink and with the way that the market is moving. He will tell you that striking a winning trade is all about knowing your own mind as a speculator– and at the same time understanding the way that psychology moves the market.
Trading is a hard mind game and let’s face it - not everyone is suitable to be engaged in such a touch games. Most new recruits neither have the required frame of mind nor mental fortitude to survive in this game of speculation that goes on and on, day after day, month after month.
Training a right frame of mind is the most difficult but absolutely necessary part for achieving success as a trader. Most individuals are not accepting of it and therefore go through that grind of the learning process because it is very painful. But a trader has to understand that if he finally wants to see himself as a successful survivor and wants to stay in the business, he can’t escape the hurdles which are actually stepping stones. The process teaches an individual to overcome fear, greed and mastering tranquility of mind while speculating.
Are you wondering “finally what is this mind game all about”? Well, it’s about every trader being able to find his/her method or system of interpreting and trading which suits his/her own situation and personality. When a trader is trading he is also evolving and if he is serious and a thinking and analyzing individual he will develop his own survival tactics through his own unique methods and mindset. After spending some time in forex most traders agree that people fail for lack of system/method plus lack of discipline to follow through more than anything else.
System –a formula for success is unique for every individual trader and proves to be a weapon of a soldier in this market. Every trader in the course of time and with some experience should develop his own thinking pattern. Best one is a self-made one because you can never be at ease with a borrowed, coped or inspired idea. Borrowing good ideas from others is a good idea but implementing them without being convinced will be a disaster. What works for one kind of trader may not work for the other. Following what everybody is doing needs average intelligence but identifying unique striking points and taking a necessary action needs not only intelligence but also some common sense and a lot of courage.
Another mind control comes into play while one looks at and learns about money management. This is also where most traders go wrong. Keep it in mind that money management and discipline of mind is what makes or breaks a trader, not the elementary entry and exit method and reading the data and charts correctly.
Forex Trading is a sentiment game which runs on crowd mentality where even the best players with the best forecasts have been seen tricked out of good positions because of sudden sharp movements in price action which they failed to read correctly and flowed with the crowd. They are heard as saying alters on “we lost our mind”. See?
One last tip that I read somewhere and have believed in ever since- good sleep is essential for good trading but most of the traders seem to sleep with their mind’s eye open.
Source: Forexoma.com
If you want to be a successful forex trader, the first requirement is to shift your mental attitude from a normal person to that of a speculator. It comes way before learning the basics of currency market, learning to read data and charts, and trying to perfect entry and exit skills, and so on. Entries and exits are indeed not “irrelevant” for any trader for any purpose. I hardly mean to convey anything like that when I say this. It is just that psychological aspects of trading are much more important than entries and exits, and decisive for the success or failure of a trader in the long run. Perhaps exits are more important than entries because any perfect or near-perfect entries are possible only in hindsight. All this is very theoretical and can be learnt from books, online lessons, and teachers.
The first thing as a forex Trainer that I do when I come across a new recruit wanting to start trading with or without my assistance is, I do my best to get his ego and fear in the market out of the way. Once they become aware of this and their ego and fear factor look reasonably in control, I loosen the grip as by this time they are already on their way to becoming dutiful followers of the market and survivors. That’s what I call helping them win mind over matter game.
As an aspiring trader what you will have to understand is that nobody can give you a formula or a straight jacket to fit into to get mind trained. Even the best guru and most accomplished gurus at the Ivy Leagues can’t drill it into your head and tighten the screws in a way that when you step out of the institute you will be a trained mind.
Training your mind is something you will have to tune your mind to understand and be convinced about. forex trading is very much a mind game and without having a right frame of mind, it is a losing game even before it starts. Training your mind is the first step to become a successful trader but majority of traders who are just starting out or are still new neglect this crucial part which also explains why majority of traders do not succeed in the long run.
Actually instead of reading through realms and confusing the mind with overflow of information, I’d suggest that a beginner gets hold of an experienced, successful forex trader who has been in the forex trading game for any length of time. He will be the best person to tell you how much psychology has to do with both your own performance on the trading rink and with the way that the market is moving. He will tell you that striking a winning trade is all about knowing your own mind as a speculator– and at the same time understanding the way that psychology moves the market.
Trading is a hard mind game and let’s face it - not everyone is suitable to be engaged in such a touch games. Most new recruits neither have the required frame of mind nor mental fortitude to survive in this game of speculation that goes on and on, day after day, month after month.
Training a right frame of mind is the most difficult but absolutely necessary part for achieving success as a trader. Most individuals are not accepting of it and therefore go through that grind of the learning process because it is very painful. But a trader has to understand that if he finally wants to see himself as a successful survivor and wants to stay in the business, he can’t escape the hurdles which are actually stepping stones. The process teaches an individual to overcome fear, greed and mastering tranquility of mind while speculating.
Are you wondering “finally what is this mind game all about”? Well, it’s about every trader being able to find his/her method or system of interpreting and trading which suits his/her own situation and personality. When a trader is trading he is also evolving and if he is serious and a thinking and analyzing individual he will develop his own survival tactics through his own unique methods and mindset. After spending some time in forex most traders agree that people fail for lack of system/method plus lack of discipline to follow through more than anything else.
System –a formula for success is unique for every individual trader and proves to be a weapon of a soldier in this market. Every trader in the course of time and with some experience should develop his own thinking pattern. Best one is a self-made one because you can never be at ease with a borrowed, coped or inspired idea. Borrowing good ideas from others is a good idea but implementing them without being convinced will be a disaster. What works for one kind of trader may not work for the other. Following what everybody is doing needs average intelligence but identifying unique striking points and taking a necessary action needs not only intelligence but also some common sense and a lot of courage.
Another mind control comes into play while one looks at and learns about money management. This is also where most traders go wrong. Keep it in mind that money management and discipline of mind is what makes or breaks a trader, not the elementary entry and exit method and reading the data and charts correctly.
Forex Trading is a sentiment game which runs on crowd mentality where even the best players with the best forecasts have been seen tricked out of good positions because of sudden sharp movements in price action which they failed to read correctly and flowed with the crowd. They are heard as saying alters on “we lost our mind”. See?
One last tip that I read somewhere and have believed in ever since- good sleep is essential for good trading but most of the traders seem to sleep with their mind’s eye open.
Source: Forexoma.com
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