Its a fact that most traders lose because they dont have mental discipline and the reason for this is quite complex in that to have discipline you have to have certain traits that are not considered good in normal society - but there essential in forex trading.
Forex success is available to those traders who understand the following:
Robust Simple Method + Applied with Discipline = Forex Success
Of course if you dont have the discipline to apply a method with discipline, you really have no method in the first place.
1. Consult an Expert
The first thing to understand is that discipline comes from confidence in what you are doing. If you dont understand how and why a forex trading system works you will ever have discipline - PERIOD.
To many traders follow gurus or mentors and expect their forex trading system to lead them to success - yet most of the systems sold are junk or the logic is simply not understandable and the traders lacks the discipline to follow it - as soon as it hits a few losses ( and all trading systems do) they throw in the towel.
After the Rain - How the West Lost the East::
File Format: Rich Text Format - View as HTMLGuntrip elaborated on it and together they created one of the most impressive theoretical bodies in the history of psychology.
http://www.suite101.com/files/topics/6514/files/development.rtfHOME |
Indian Stock Market Calls: 09/01/2007 - 10/01/2007::
Well, most traders are not successful! To be successful in trading any market, human emotion and the pervasive mass psychology and mood of the moment.
http://www.marketcalls.org/2007_09_26_archive.htmlHOME |
If you take the time and trouble in your forex education to learn all the reasons why a system is likely to work then you can succeed.
Today we are taught that the experts know best but in forex trading this is very often not true.
2. Isolate Yourself
In life no one likes to be on their own - man is a pack animal and since stone age times we have grouped together for safety. In the forex markets thought follow and join the herd and you will lose your equity so stay isolated.
3. Make Your Own Rules
In life we are taught to obey rules and our lives are structured. In the forex market however we have to make our own rules up and live by them and this is hard for many traders, they simply cannot take responsibility for their actions.
The market is an all powerful force and it moves as when it wishes where it wants to and finally only you can be wrong and its always right.
You either accept this and construct rules to live by or you fail.
4. Money is Not Important
Of course it is - but in forex trading you have to treat money as if its not. If you dont your emotions will get involved and you will never be able to run profits and cut losses.
Most traders run losses as they dont want to take a small lose and when they get a profit they get so excited they want to grab it before it gets away. Most traders snatch marginal profits whereas if they had held on and had the courage of their conviction they could have made a huge profit.
5. Profiting From Others Failure
Your on your own in trading and its dog eat dog and you make money from others failure its as simple as that.
Obtaining discipline is simply not easy and as you can see, many traits considered great in normal society need to be re thought. Of course anyone can adapt and trade with discipline in the forex markets it just depends on whether you are prepared to adopt a new mindset.
If you do adopt a new mindset then currency trading success can be yours.
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Forex Trading Psychology - Why Most Traders Cant Acquire This Trait and Lose