4 TIPS TO SPECULATE LIKE A SUCCESSFUL TRADER AND GET BACK ON TRA
(1) Don’t Let Risk Change Your Behaviour
The biggest psychological obstacle for traders is the perception of losses (and the concept of losing). For traders, the pain of closing a trade and realizing a loss outweighs the excitement of realizing a winning trade of equal magnitude.
(2) Don’t let confidence get the best of you
After putting together a string of successes, it’s human nature to build up confidence around your dealings and this can be a good thing.
But once a trader has gone into the territory of being ‘over-confident’, risky habits may sneak into their approach, none more damaging than the willingness to bend their own trading rules simply because they feel it will be successful.
Therefore, traders should always look to strike that delicate balance between being scared or fearful, and over-confident.
(3) Bring a Positive Mindset to the Charts Every Day
Since you will inevitably be taking losses in this game of forex speculation, it’s important to deny those losses from altering your frame of mind.
Traders will often experience the disappointment of being stopped out and this can be very discouraging. As a result of this they take shortcuts on their analysis or question their own approach. This never ends well.
Well to conclude..
One of the best ways to manage your emotions is to trade with stops and set a positive risk to reward ratio.
Many traders believe that a trading strategy has to be perfect. Most times the best strategy is the simple strategy. Learn how to trade consistently without the perfect strategy.
The biggest psychological obstacle for traders is the perception of losses (and the concept of losing). For traders, the pain of closing a trade and realizing a loss outweighs the excitement of realizing a winning trade of equal magnitude.
(2) Don’t let confidence get the best of you
After putting together a string of successes, it’s human nature to build up confidence around your dealings and this can be a good thing.
But once a trader has gone into the territory of being ‘over-confident’, risky habits may sneak into their approach, none more damaging than the willingness to bend their own trading rules simply because they feel it will be successful.
Therefore, traders should always look to strike that delicate balance between being scared or fearful, and over-confident.
(3) Bring a Positive Mindset to the Charts Every Day
Since you will inevitably be taking losses in this game of forex speculation, it’s important to deny those losses from altering your frame of mind.
Traders will often experience the disappointment of being stopped out and this can be very discouraging. As a result of this they take shortcuts on their analysis or question their own approach. This never ends well.
Well to conclude..
One of the best ways to manage your emotions is to trade with stops and set a positive risk to reward ratio.
Many traders believe that a trading strategy has to be perfect. Most times the best strategy is the simple strategy. Learn how to trade consistently without the perfect strategy.