8 Steps Off the “Gambling Forex” Trap
Every trader certainly doesn’t just want to just “survive” when deciding to open a trading account with a forex broker . Of course there is a desire to be able to produce consistent profits; thank you if you can as big as possible. The problem is, not a few of them start trading with the right intentions but eventually misstep. Instead of being a successful trader, they actually become gamblers who are always upset. Why confused? Because with gambler behavior, the profits they get never last long.
You don’t think that the so-called “forex gambler” is only those who make transactions without analysis. Yes, indeed they are one of the gambler groups. But did you know that actually the term Forex gambler can also be pinned on those who make transactions without the implementation of a good trading plan?
In the previous article you can read – and hopefully understand – the difference between a trader and gambler. Now, after knowing the differences, you should be able to avoid things that can make you “lost” to become a ” forex gambler “, not a forex trader.
Especially if it turns out you have transformed into a gambler . If so, it’s a good idea to immediately take “healing” steps.
Well, to “recover” from gambling , there are several things you need to do:
- The first step is to stop trading during the “recovery period”.You must take time to take a break from trading activities to calm your emotions.
- Step 2 is that you must immediately possess and master a trading strategy.Please note that in most cases, the “gamblers” also have trading strategies that are often very good. The problem is that he cannot master his emotions so he cannot carry out the strategy with discipline.
Make sure you understand the strategy and try it again on the demo account .
- Step 3: Create a trading plan.It’s good that the trading plan is not only stored on the head, but also write on a piece of paper so you can see it every time you trade.
- Step 4: Include risk management.In the trading plan, do not forget that you must include risk management and make sure you obey it. Don’t forget that every transaction is basically a loss , so keep risk management included.
- Step 5: Limit the transactions you make.Limit how many lots are maximum each time you open a position.Or, limit the number of times you enter the market. For example, a maximum of 1 lot every time you open a position and a maximum of 3 times open a position in a day. Of course the number of lots must be adjusted to capital and risk management.
- Step 6: Believe yourself.Make transactions based on the strategies that you already have with confidence. To be able to do this, of course you have to be comfortable first with the risk limits that you have set. Don’t forget, this strategy you have tested before in step 2.
- Step 7: Control emotions.Keep your mindset by staying focused on the process, not on the results. Always confirm and convince yourself, “My process must be right, my process must be right, my process must be right!” That sentence must be repeated every time you want to transact.
- Step 8: EvaluationAlways do periodic evaluations, whatever your trading results. If loss , you must be able to find out what you did wrong. Even if it’s profitable, you also need to be able to find the reason for the success, then repeat it in the future.
Now, after reading the eight steps above, you should be able to see something: that being a pro forex trader does not start from skill , but from the mindset . Mindset will in turn be an action; action will become a habit.
So to be able to escape the gambling “disease”, you must change the habits of a gambler . Get to know if there are gambler habits in your trading activities (and you have to be honest about that!), Then improve by doing the eight steps outlined above.
Happy trading, don’t gambling!