Personality of a Forex Trader
As a trader, your focus is usually on indicators, price action and fundamental interpretation. When you are trading (open positions) based on data and you see the price move against your position that caused the loss, then how? You re-review your system or your trading plan.
Well, there’s something missing here. You should find out what you should do when the above occurs. If you fail to understand something, there is the potential of any trading system that you do will fail. A true understanding of your personal motivation is more important than any indicator.
In his book Trading Rules That Work, Jason Jankovsky neatly outlines this motivation. He claims there are 3 keys to successful trading:
- Traders must first understand their own motivation and psychology to invest.
- Traders then have to master and embrace the psychology inherent in their personal trading rules.
- Traders must monitor and master the collective psychology of the market.
The challenge is how you learn to do this. It is very important for every trader to create and keep accurate and comprehensive records of all trading positions. Especially what you feel (feeling) and think before and after trading positions.
Here are some general formulas of a trader’s personality:
- Switch from self-criticism to honest self-evaluation.
- When trading relies on feeling (feeling) during trading. Over time, switch to the evaluation of emotional controls during trading.
- As a novice trader, often experience doubts and fears. It has been replaced with confidence, confidence and system strategy.
- The learning process starts from reading books, taking courses and contacting mentors who can teach. Or who knows you are the mentor in the future.
- As a novice trader, a lot of information is sucked up and reviewed to the basics. Turns into an in-depth understanding that makes it possible to filter and ignore most of the noise (unnecessary information) on the market today.
Successful trading is more than just data, graphics and strategy. Your profitability will be largely determined by your mastery of this psychological game of your personality.