Sunday 12 February 2012

Forex Trading Psychology

Trading psychology is a huge aspect of successful trading and determines whether or not you will be able to make consistent profits as a trader. The two areas that need to be developed and enhanced is your patience and discipline. During my training this week we touched briefly on this topic but I can see that I will return to it in more depth at a later stage in the course.

Some of the key elements that where mentioned during my training, may sound obvious but from what I have heard and read its the most difficult part to master e.g. If the rules for your strategies are not met, then do not enter a trade! 

It seems that discipline will help prevent me from dangerous trading and protect the profits that I have already made. The tutor mentions that every trader goes through a mental roller coaster in trying to find the correct strategy for them to use, it is through discipline and determination where I
will be able to keep on trading and finding ways that suit my needs e.g. There may be a good chance that my strategy may not prevail and this is when discipline and patience are applied together, I must stick to my rules and be patient with the market, let the market come to me and not go chasing after it instead. Analysis is another way to keep your discipline, when experiencing a run of winning or losing trades it is imperative to find out
  • What am I doing right and what can be improved?
  • Why was my trade onside?
  • Why was my trade offside?
  • Why did I enter at X price?
  • Why did I not exit at X price?
Don’t let emotions fuel your view on the markets, if emotions get in the way you will lose money. There is always tomorrow, Patience is a Virtue!

Keep you posted Happy pipping!!



No comments:

Post a Comment