Psychological Preparation Of The Trader: Good And Bad Ideas
What thoughts visit you at that time when you trade?
If you tell to yourself: “if only not to lose”, you can cause loss or, at least, drop possibility. Remember, trade is a capture of possibilities and accepting of losses even when you hold their small. If you tell to yourself, “I can make here the big money”, you will overload, possibly, positions and, most likely, finish with the big losses, too big according to your principles of management of money.
You tell to yourselves about the certain market tool – it should go down because of that and that; it should rise to that and that. These thoughts then influence your sights and decline them in the certain party.
You speak, “I don’t trust it!” If you don’t trust, you diminish that you clearly see and that occurs actually. Such statement of mistrust acts as the red flag speaking to you where you could go incorrectly.
You wonder, “That if I am wrong?” It leads your imagination to consequences of being wrong. When, you will start feeling won before even have started to trade, you will be inclined to drop the transaction, and will feel awfully when it in a consequence will appear profitable.
You worry about that your boss will think, the broker, the friend or members of a family if you lose? Such thoughts can force you to fluctuate at an input in the market or to fix profit too quickly. Ideas, good and bad, are powerful force. They influence your perception, your interpretation of a situation and, of course, and your actions. You should supervise the thoughts.
You can do it in the end of trading day when you look through transactions. Of what you thought, when concluded the bargain or were unable conclude this or that bargain. Of what were you thought, when have cancelled that stop warrant, have doubled a position or left the market. Of what you would want to think in similar situations tomorrow?
It is better, if you can catch yourselves while you think about something that holds you from your optimum trading position. And you can reverse it directly on a place. If you hear the statement, “that if I lose?” Change it immediately on, “that if this transaction makes for me the big profit?” If you hear the statement, “this market should be developed”. Paraphrase it on “that the market shows to me now?” Or “what probabilities are in the present state of affairs?” Who manages your opinion? Only You do that. And you can learn to manage the opinion for support of the trade. Actually you just have to give yourself a try and believe me that is not that hard as you may think, just do it.
People who took the decision to participate in forex trading should start from learning the basics of currency exchange market to make sure you do not experience problems with this industry.