Essential elements of a successful trader
Courage under stressful conditions, when the output is uncertain
All foreign exchange trading knowledge in the world can not help unless you have the nerve to not buy and sell currencies and put your money at risk. As with the lottery “You gotta be in it to win it.” Trust me when I say that, do the simple task of hitting the buy or sell key is extremely difficult when your own real money is in danger, is set.
They feel fear, even fear. This is the moment of truth. Do you have the courage to be afraid and act anyway? If a firefighter in a burning building I assume he is running scared, but he does it anyway and achieves the desired results. If you can not be overcome or accept your fear and do it anyway, you will not have to be a successful trader.
However, if you learn to control your fear, it becomes easier and easier and in time there is no fear. The opposite reaction can become a problem – you are cocky and not focused enough on the risk you take.
Both the inability to open a trade, or close a losing trade can create serious psychological problems come from a vendor to the front. Through attention to these potential stumbling blocks beforehand, you can actually prepare before your first real trade and develop in a good trading habits from day one.
Start by analysis of itself. Are you the type of person that can control their emotions and flawlessly execute trades, often under extremely stressful conditions? Are you the type of person who is cocky and vulnerable, more risk than they should it? Before the first real trading, you must look inside yourself and get the answers. We can correct any deficiencies before they are in paralysis (not pulling the trigger) or a large losses (hubris). A huge loss can prematurely end your trading career, extend or your success until you get to raise additional capital.
The difficulty lies not with “pull the trigger to stop.” In fact, what comes next is equally or perhaps more difficult. Once you staying in the industry, the next hurdle in the trade. When trading in foreign exchange leaving the trade as soon as possible after the entry if it does not work. Most people who have successfully in the “non-trading book ventures find this concept difficult to implement.
For example, real estate tycoons make their fortune ride the bad times and selling during the boom times. The problem with trying to adapt to hold a ‘, until he comes back’ strategy in foreign exchange markets is that most of the time are in the currencies of long-term persistent, directional trends and your equity will be before the currency comes back to be wiped off.
The other side of the coin is in a trade, keep working. The most common pitfall is closing a winning position without good reason. Once again, the fear of the perpetrators. Your subconscious demons will scare you non-stop with questions like “What if news comes and you end with a loss.” The reality is when news comes in a currency that is up, the message has a higher probability of positive than negative (more on why this is so in a later article).
So your fear is just a baseless annoyance. Do not try and fight the fear. Accept. Much to laugh about it and then move on to the task at hand, which is based the definition of an exit strategy to the actual price movement. As Garth says in Wayne World “Live in the now man”. They worry that could be is irrational. Study your chart and determining an objective exit point is reality and rational.
Another common pitfall is closing a winning position because you are bored with him, not their moves. In football, after a star running back breaks free to win a 50-yard, he comes out of the game temporarily for a breather. When he re-enters the game he is a serious threat for more yards – this is indisputable win. So when your position takes a breather to move after a victory, the next event is expected that further gains – so why close it?
If you can feel safe under fire and strategically courageous patients, can be forex trading for you. If you are a natural gunslinger and reckless you will contribute to your tone a notch or two need and we can help you make the necessary adjustments. If your money at risk makes you a nervous wreck its because you lack the knowledge base of confidence in your decision making.
Patience to Gain Knowledge through Study and Focus
Many new traders believe all you need to profitably trade foreign currencies are charts, technical indicators and a small bankroll. Most of them blow up (lose all their money) within a few weeks or months, some are initially successful and it takes as long as a year before to blow. A tiny minority with good money management skills, patience and a market niche go on to be successful traders. Armed with charts, technical indicators and a small bankroll, the chance of success is likely to 500-1.
To increase your chances of success in the near certainty requires knowledge, acquisition of knowledge is hard work, study, dedication and concentration. Compile your knowledge base without any shortcuts, so the certainty of a solid foundation to build on.
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