"forex Trading Psychology: The Key To Profitable Trading For Australians"

"forex Trading Psychology: The Key To Profitable Trading For Australians" - Let me make a blunt statement that is 100% true: All trading problems and all trading failures are caused by emotions. When a trader fails, it is not because they misread the charts, but because of flaws in their trading psychology. And when it comes to specific trading problems and failures, the points below account for most of the problems traders deal with on a day-to-day basis: Not letting winners run, not taking profits, cutting losses, taking bad trades too late, not taking random trades outside of the rules. Good trades (due to fear or bad habit) High profits (taking too much risk) Under-leveraging (not taking enough risk / inconsistent position measurement) Chasing price/trades Pushing account growth too fast No consistent system changes A system in the first place (lack of intensity) Flight Or fight if your results aren't what you want, it's not because you're using the wrong moving averages or getting your support/resistance levels the wrong way around, but because one or more of the previously listed issues are causing your trading mistakes to be responsible for your failure. Well, the next question is: What are we going to do about those problems, and how can traders overcome their problems? Stick with me, we're getting there… The conventional approach to trading psychology, where traders talk about fear and greed on a surface level, is outdated and not very practical. Why? Because real problems go deeper on many levels. Level 2 Problems - Fear An Example Let's look at an example of fear. "Fear" is a very dominant emotion that many traders experience on a regular basis in their trading. But fear comes in many forms. And, most importantly, fear can have many different causes. A trader may have a fear of losing. It doesn't help if you tell the trader that losses are a normal part of trading or the cost of doing business. No trader is cured of the fear of losing by repeating such meaningless phrases. He may already understand this, but the fear of loss usually has a different origin. For example, the trader may lack confidence in his trading strategy. Maybe he picked up a random strategy somewhere and never checked it. Of course, risking real money is scary and intimidating. Or the trader knows that he does not put in the work, does not approach trading with the seriousness it deserves, and therefore experiences fear while trading because he has a deep belief that you have to work for your money and nothing comes. Easy. Or the trader has unrealistic expectations of doubling his account every few months. Of course, when reality catches up and the trader realizes that his expectations are not met, this can create fear when he suddenly realizes that his idea of ​​trading cannot be achieved. Or, the trader has no system, no rules to begin with and all the trades he enters are completely random - experiencing fear in such a situation is a normal reaction, wouldn't you agree? Or, the trader came up with an arbitrary performance goal and he wants to realize 5% per week. Fear can also be a natural result when the trader is stuck in a rut and pressured to achieve such inconsistent targets. So, fear is a surface level emotion, and there are underlying causes and other issues at least 2 or 3 levels deeper than your typical fear response. I could go on with examples of how fear can always be created, but I think you get the point. Simply saying "fear" is your biggest problem won't cut it. You need to go at least 1 or 2 levels deeper to find out what the real problem is. Because only then can the real cause be activated and a plan developed to overcome the root cause. You can't work on trying to overcome the "fear" itself, because you don't know what's causing your fear. This is what 99% of traders and trading education recommend. But simply trying not to panic doesn't work - as you now know if you've tried this approach in the past. But once you go a few levels deeper and figure out why you're experiencing fear, it's relatively easy to do. Conquering Trading Psychology Step 1: Awareness The next thing is that conventional trading education is wrong, suggesting that you cut out emotions and trade like a robot. This couldn't be further from the truth. Following such advice is actually very dangerous. Needless to say, it doesn't work anyway, as the 99% failure rate of traders suggests. We are human beings and emotions are a very important part of our existence. Of course, we cannot suppress our emotions. We are not built this way and trying to impose such an attitude on ourselves can cause a lot of stress and frustration - emotions that were not there before, but by trying to suppress emotions you have artificially created them. The good news is, there is a way. The first step is simply noticing when a particular emotion – or a strong feeling – arises. Most traders are either numb to their feelings with all the stress going on around them, or they try to shut down their feelings and push it away. Obviously, this isn't very effective and eventually, all your built-up emotions find an outlet that usually ends up ugly. So, the next time you feel uncomfortable, consider it. Write down when it happens, what you are going to do, and how you feel. This way, your emotions actually play a useful role in your trading, as you can use them to identify potential flaws or areas you need to work on. If you're trading and you're constantly feeling uneasy when the price pulls against you, investigate it further. A great lesson awaits you! What causes this feeling? Is your position too big? Don't have rules for your business management and don't know what to do? Perhaps you haven't seen the natural price behavior since your entry and need to go back through your past trade screenshots and audit what might happen once you enter the trade. Of course, there may be many other reasons for your feelings. But the idea is that you really listen to your feelings and your inner speech in those situations to identify the core issue. It is the most reliable way to deal with all emotional trading issues. An excellent book in this context is "Awareness" by Anthony de Mello. Then suddenly you can start appreciating your emotions because they (1) act as an early warning system and (2) help you improve your trading in areas you previously ignored. Conquering Trading Psychology Step 2: Uncertainty I've talked about uncertainty many times, but it fits perfectly in this context. Many traders can reduce the level of emotion-related trading problems by simply eliminating uncertainty. 99% of all traders spend their time on trade entries and completely ignore everything else. Of course, uncertainty is a logical consequence. Such traders do not know how to place stops and targets in certain market conditions. Traders don't see steady-state volume policies. Traders lack understanding of managing trades and dealing with drawdowns. Marketers don't know how to handle the news. Traders may not even understand the entry criteria they are using because they are jumping around all the time trying to find the "right" entry method, ignoring all other aspects of their trading strategy. Uncertainty leads to distrust, which then leads to fear. By eliminating uncertainty, you can cure many problems associated with trading. In order for you to do that, you need to be clear about your entire approach to trading, and you need to define all of its parts. That and many more exercises form the foundation of our 5-month "Run Your Business Like a Business" course. The Big Picture Your Why Your Vision The Role of Trading in Your Life Your Surroundings ... Strategy Parameters Entry Rules Exit Rules Rules for Stops and Targets Management Principles .... Risk Rules Fixed Position Size Maximum Open Exposure How You Handle Interactions ... Growth Principles Your Trades How do you review How do you implement changes When do you add to your account How do you work yourself?

Simple profitable forex trading strategy, is forex trading really profitable, can forex trading be profitable, forex trading psychology, most profitable forex trading strategy, profitable forex trading strategy, psychology of trading forex, forex trading psychology books, how profitable is forex trading, forex trading is it profitable, is trading forex profitable, forex trading profitable

Share :