Understanding Psychology for Success in Forex Trading
Mindset About Forex Trading
Why are so many traders failing in the forex market? Simple, they have not really prepared themselves to invest through this forex trading. Either it has enough experience, knowledge and knowledge that is qualified, and does not have the mindset like a trader.
In the forex market, you are likened to looking for a gold mine in the forest where the forest is inhabited by a group of wild animals. Of course to get out of the forest safely and also get abundant gold you must know first about the conditions and situations in the forest. How to survive, how to avoid the threat of wild animals and other things. Basic knowledge in knowing the forest will certainly be very useful. Knowledge to survive is certainly very helpful for you in exploring the forest.
Unfortunately, this knowledge is not enough for you to be able to conquer the forest. Indeed, you managed to walk around and survive tracing the forest, but whether you can go out and go home with a bag of gold, that’s not necessarily. It takes practice and high experience. Of course you don’t want to enter the forest just to look for experiences in exploring.
Luckily, there are lots of forex brokers that provide such simulation sites. Demo account. Yes, demo account. Demo account is the most suitable simulation place for those of you who want to learn and look for experiences to survive in the forest called the forex market. But silly, many beginner traders who directly plunge into the real forest (real account) to risk their lives without practicing first. It’s a ridiculous gamble.
You are the only factor that can make you successful in forex trading. If not you then who else?
Most traders who already have little by little ’experience in forex try to sell some kind of forex trading system or hold paid training for beginner traders. Ridiculously, these plain traders (beginners) believe that when they buy a forex trading system or take paid training they will immediately be able to succeed immediately.
Of course this is legitimate, using the system you bought or taking training. However, this does not guarantee you can succeed immediately. It takes hard work, trials and ‘backtest’ in developing the system according to your trading style. Keep in mind, everyone has a different mindset and perspective. This also applies with the forex trading system. When a trader can earn a percentage of profit using a particular forex trading system, you don’t necessarily fit the system.
Apart from that it doesn’t hurt to take paid training, and we strongly recommend it. Finding a mentor or a supervising teacher is very necessary to succeed in this forex. But, before you decide and pay for the training, you first check the history or ‘track record’ of your prospective mentor. You are certainly smarter to drive a car when taught by someone who has been able to drive a real car rather than being taught by someone who is good at playing car racing games. You understand what we mean.
Follow the rules of the forex trading system that you have created
In the forex market, there are no rules in writing when you will transact. Whether it’s min / max deposit funds, maximum open position limits and other rules (depending on the forex broker you use). Interestingly here, on the other hand, you can make or arrange your own rules in the forex trading system that you make. In an ideal forex trading system, there are listed things like:
- How do you open a position.
- How do you close a position.
- What to do when the position is wrong.
- How much lot is used for a single position (or day).
- How much use the appropriate margin.
Lots of people asked us, they had made a forex trading system but it still failed. If you are someone who has high confidence in your own abilities, then reduce that confidence when you are in front of the chart.
Why ? Because usually people who have high self confidence are difficult to control their emotions and violate the rules that have been made in their forex trading system. There is nothing wrong with having high self-confidence, that’s good.
When you have written the rules on the forex trading system that you have created, obey the rules.