In Australia Forex trading,
it seems that traders today are not better off compared to traders 50
years ago. Today traders are not only tilted to traditional or physical
currency trading but its online currency trading. I still remember when i
was purchasing different currencies and putting them in my house safe
for profit margin and this all time , i was afraid to not being theft.
Now, you cannot imagine to go for this sort of currency trading and most
of Aussie are really speeding up in online currency or simply forex
trading on their mobiles. lol .Losing consistently is still very common
among traders. This is despite all the advances we have seen in the
Forex trading arena and the reason the same the same number lose, is
because they fail to get into the right mindset to success in Forex
trading.
Currency trading in Australia,
just like other types of investments, include a certain deal of
psychology. While there are a lot of things you need to consider when
trading Forex, there’s no good reason to exclude the psychology aspect
at all. Forex trading psychology is equally or even more important
because when you trade Forex, you have to adapt a certain kind of
mindset that is not common in everyday life.
In
a perfect world, traders can follow their emotions, trading whenever
they feel like it – and realizing profits from it. Unfortunately, this
is not a perfect world and traders who trade according to their emotions
lose money at the end. There are two emotions in particular that have
been the source of devastation for Forex traders over the years namely
fear and greed. When the market is moving against a trader, he feels
fearful and closes his position prematurely. In the same way, when the
market is moving upwards, he tends to feel greedy and continue making
trades, even increasing his leverage mindlessly.
Beating Your Emotions
Never letting
emotions occupy you while you trade is something that any trader should
master and this is indeed a great step towards being a successful
trader. The best way to beat or at least minimize your emotions is by
making a detailed trading plan and sticking to it. Your trading plan
should include a complete entry exit, stop loss and take profit orders.
Also, make sure your rules are clearly written and take some time to
back test your plan before using it with a live trading account.
A
good strategy to keep in mind is to not try to make up for losses
immediately. Think about long term goals. Know how much you are looking
to make and when to add more funds.
Overall,
remember that Forex trading involves working smart and adding more to
your knowledge. While the sophisticated tools and trading systems we
have today are helpful, nothing will help you become a successful trader
more than having the right attitude and mindset.
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