Forex is boring, but beautiful.
Like most things in the world involving money, there is a lot of fraud in the Forex world. Some of them are dangerous, and some are harmless. At this point, you might have seen some advertisements. Or an advertisement that explains how attractive the financial world is. And how rich you can be a trading currency. However, most will not lack sales tactics.
The reality is that most professional traders are even very debilitating. This is not to say that they will not experience occasional profits. Of course emotions are sometimes involved when each time you talk about a large amount of money. Over the years, I have worked for myself to try to stay calm and not trade forex. You are in a situation where many large banks carry out trade algorithms. Which means there is no emotion in the movement. Compare that with the average retailer, and you can see how they don’t think clearly at all times. That is because they tried to get their money back after a very bad loss for example.
The losing streak can be detrimental, as is the advantage.
Ironically, I have found that over time. successive wins and losses can present many of the same problems. For example, if you have seven or eight Boring Forex Trading in sequence. Then you feel like you can’t do something right when it comes to trading. And then you start making uncertain and emotional decisions.
On the other hand, if you have six or seven consecutive wins. Then it’s easy to feel like you finally “found the market”.
And therefore you start trading a little more. You feel like you are looking at the market in a way that only you can, and that is certainly encouraging.
The reality is that this is one of the most dangerous times. That’s because you might find yourself trading that doesn’t line up enough. Then you are willing to take a little more risk than usual.
As a general rule, if you have a winning or losing streak, the reaction must be the same. You should sit on the sidelines and take a little breath. You really need to restore your emotions before trying to return to the forex market again. That will give you the ability to calm down, focus. And in the end it will make you able to make far more strategic decisions.
Competition with professional Forex Traders
Professionalism is the most important thing you must remember when trading forex. You must have a forex system that has been proven reliable in the long run. And of course you have to know that it works.
Unfortunately, too many retail traders will let them spur them. And therefore taking trades that have nothing to do with their forex system. This is difficult to fight, because there are times when you feel like seeing the forex market will do something before that happens. However, if it is not part of your normal trading signal, if you are wrong, you can completely blow up your results. If that is the case, you will find uncertain returns.
There is a reason why professional forex traders have very strict risk management. They understand human nature. And they understand that the more attractive a trade is, the more likely something bad will happen. This can be as simple as giving back all the benefits for the day. Or it could be changing 1% loss to a 10% loss.
Finally, keep everything in perspective.
Look, we all like to trade and I understand how you feel about it. I can’t think of anything else I would rather do than work on the currency market. I really like what I do. But after saying that one of the biggest problems facing forex traders. That is, they emphasize too much on forex trading in general. Even though forex trading is something I really care about. But I have a whole list of things that are far more important in my life.
I understand that it sounds like something that must be clear. But it’s hard to remember when you’re in the process. This is the kind of initial problem that I see with most forex traders. They get into the idea of forex trading because they believe they will get rich overnight. That is enough to click a few buttons on the computer while sailing around Hawaii. However, they later became brokers and sat at their tables for 15 hours a day. It doesn’t matter what pays, I think that’s not the way to live. What’s more, if you know how much you make per hour, it might change your stomach.
Able to walk away.
I think it’s important to be able to leave the computer. Not only when the forex market moves and you experience a bad time, but even when you have direct trading. If you have a stop loss in place, and also take a potential profit, there is nothing more to do. Watching a chart will not change what happens next. Some of the best forex trading I’ve ever done. Among other things is when I walk away to go back and find a big advantage. Or even closed forex trading that already has my take profit order.
Remember, we trade forex to make money and make our lives better, not live to trade forex. You just have to keep a perspective on this, and what might be the final result. I know it’s difficult to stay calm, but this is very important. If you know a system or methodology that makes money in the long run, your job is simply to run it. If you do it instead of talking statistically, you have to make money. That’s all the other nonsense that keeps us in trouble.