You Need A Forex Traders Mindset (Part I)
Human beings are emotional creatures. It is often said that we are our own worst enemy. In forex trading, this is the ultimate truth. Most of our trading decisions are guided more by emotional than logical thinking. Our mind is capable of playing emotional tricks on us.
We can get seduced into unfavorable situations by our emotions. Emotions can work for us and against us. Your battles are won or lost in your mind first. A traders mindset is the most important ingredient of success.
Do you have a strong desire to succeed in forex trading? Forex trading is not for everyone. If you just want to try your luck or dabble in trading, you will end up like the majority who end up losing their money. Do you have the passion for trading forex?
In order to become a successful forex trader, you must be highly self motivated. You must have a concrete plan of action and not be afraid of failure. Are you ready to devote a lot of time and effort into picking up trading skills and knowledge?
You need knowledge and skills in trading currencies in order to become a successful forex trader. To attain consistent success in forex trading, a huge amount of time, effort and money is required for a trader.
Are you willing to accept losses as part of trading? You are going to make mistakes while trading. Do you understand that you can suffer losses in trading? Are you willing to learn from your mistakes? Do you have a traders log that you use to reflect on each lost trade and learn from it?
Most of the new traders read some market analysis from an analyst. They enter into the trade based on that market analysis. Most of us tend to blame the market analysis and the opinion of the analyst if the trade turns out to be a loser. It is easy to blame others.
But is it fair to blame someone when you could have done further market analysis on your own. It is foolish to blame others for your mistakes when you could have planned your trade in a better way. Dont be trigger happy? Only pull the trigger when you are confident that you have done your analysis to confirm what others are saying.
Fear and greed are the two most dominant emotions that affect not only the individual traders but also the currency markets. In fact, these two emotions are the main drivers of the forex markets.
Fear and greed are behind the steering wheel of the currency market. Fear makes many traders like you over pessimistic about a currency pair. They start the selling frenzy. Similarly, greed is going to make many traders like you over optimistic in thinking that a currency is going to appreciate. Greed starts a buying frenzy. It develops a bubble based on the irrational exuberance. It is inevitable that this bubble is going to burst. When greed takes over, the market becomes bullish. When fear takes over, the market turns bearish. - 23310
We can get seduced into unfavorable situations by our emotions. Emotions can work for us and against us. Your battles are won or lost in your mind first. A traders mindset is the most important ingredient of success.
Do you have a strong desire to succeed in forex trading? Forex trading is not for everyone. If you just want to try your luck or dabble in trading, you will end up like the majority who end up losing their money. Do you have the passion for trading forex?
In order to become a successful forex trader, you must be highly self motivated. You must have a concrete plan of action and not be afraid of failure. Are you ready to devote a lot of time and effort into picking up trading skills and knowledge?
You need knowledge and skills in trading currencies in order to become a successful forex trader. To attain consistent success in forex trading, a huge amount of time, effort and money is required for a trader.
Are you willing to accept losses as part of trading? You are going to make mistakes while trading. Do you understand that you can suffer losses in trading? Are you willing to learn from your mistakes? Do you have a traders log that you use to reflect on each lost trade and learn from it?
Most of the new traders read some market analysis from an analyst. They enter into the trade based on that market analysis. Most of us tend to blame the market analysis and the opinion of the analyst if the trade turns out to be a loser. It is easy to blame others.
But is it fair to blame someone when you could have done further market analysis on your own. It is foolish to blame others for your mistakes when you could have planned your trade in a better way. Dont be trigger happy? Only pull the trigger when you are confident that you have done your analysis to confirm what others are saying.
Fear and greed are the two most dominant emotions that affect not only the individual traders but also the currency markets. In fact, these two emotions are the main drivers of the forex markets.
Fear and greed are behind the steering wheel of the currency market. Fear makes many traders like you over pessimistic about a currency pair. They start the selling frenzy. Similarly, greed is going to make many traders like you over optimistic in thinking that a currency is going to appreciate. Greed starts a buying frenzy. It develops a bubble based on the irrational exuberance. It is inevitable that this bubble is going to burst. When greed takes over, the market becomes bullish. When fear takes over, the market turns bearish. - 23310
About the Author:
Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading stocks and currencies. Know Swing Trading. Learn Forex Trading!
posted by Mr. Forex at
5:25 AM
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