13 Nov 2014

FORGET THE MONEY! WHAT?





Trading is not complicated. You do not need to be genious to become successful trader. So why is it that so many new traders lose money? 

One of the main differences between successful and unsuccessful traders is the way they think about forex. Unsuccessful traders are focused on making money. Successful ones ar focused on actual trading itself.

How many of you have made some nice profit trading demo account, but whenever you go live, you start losing money constantly? It happens because, when there is our own money involved, we want to "strike gold" faster and we desperately try to avoid the terrible feeling of loosing. When there is our own capital at risk, it creates heavy emotional burden, therefore it makes it harder to take rational and objective decisions.

Lets be honest here - most of us started trading because we wanted to quit our meaningless jobs and do whatever pleases us by trading only couple of hours every day.
But the thing is - the more focused you are on making money, the harder it will get for you to actually do it.

Of course it is not easy to simply forget the money, when you are trading, but here are couple of tips that will help to ease the feeling of the constant pressure:

Hide the profit/loss area or change it to points in your trading platform.
It is so much easier to trade if you don't actually see your balance. You can concentrate on what's happening in charts instead of stressing about whether you should close your position, while still in profit, or not.

Set your stops and targets before you enter a position.
A great way to remove the stress factor from your trading is using the "set it and forget it" aproach. If you feel you can't handle the pressure of monitoring your trades, just set up your orders and leave. Remember - you are the most objective just before you enter a trade, so if your initial analysis was correct, the trade will work out even if you don't pay close attention to it, but if it was a losing trade, you won't be tempted to widen your stop.

Find a strategy that matches your personality.
You will find it much easier not to worry about the money, if you enjoy the trading. And you won't be able to enjoy, if you will have to trade againt what you feel natural. When you have a strategy that fits your lifestyle and personality you can start improving it, whereas if you are sticking with a strategy just because it has supposedly made money for someone else, you will doubt it every step of the way.

3 comments :

  1. Hey what a brilliant post I have come across and believe me I have been searching out for this similar kind of post for past a week and hardly came across this. Thank you very much and will look for more postings from you. blogs

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