Somebody asked me, when trading Forex, how to stay positive? Forex trading or they say that Forex was an exciting topic in our lives after the internet intervention. Forex trading can be one of the most challenging jobs to do, and perhaps that’s why most traders tend to fail. The most common misconception is that the markets can be a bit like a betting playground while trading Forex, but the truth is totally different. Due to a lack of discipline, one of the main main reasons why traders fail is. When we talk overall, this discipline can be categorically called trust, capital management, rules, and mindset.
1. One set of rules or principles –
For a new trader, it is very common to change the rules or principles they have learned when they experience losses. A sudden state of panic can take place in your mind once a loss occurs and you may begin to realize that you are falling behind. The key is to adhere to your rules and trust the trading strategies you learned during your training. For a reason, you have learned them and it is not the time to change them at the earliest.
.2. Walk away from your screen –
During your demo currency training, you may not have done this, but once you place a trade, place your stop loss and target rather than simply walk away from your screen. This will guarantee that, as you watch the trade, your mental status does not suffer from constant highs and lows. Let the market just do what it needs to do. Just come back to your desk once the trade is done and analyze what happened then, not during the trade.
3. Don’t think of the Capital–
It’s going to drive you crazy thinking about money. Focus on the trading strategies, and knowing that you have made the correct entry will relax your thinking. It will be because of something beyond your control, such as a news release or a data result, if your trade fails. The point is that you can close the trade too early if you constantly focus on the capital / money rather than what you are doing, only to see it run in the original direction where it would have made some profit. That can be extremely frustrating.
4. Gain confidence through back testing –
It’s crucial to test your own currency trading strategies. Without historical data that proves your strategies work, you should never go blindly into the market. Be confident that they are good enough for the real market once you have that, which is exactly the same as the demo market. Stick to your rules and wait for strategies to produce profits or suffer minor losses. Do not become part of the unsuccessful trading community. Make sure that, in an almost military way, you are disciplined where you are strong enough to know when not to trade. This is just as essential as knowing when to trade. You will build up the trust you need through time and currency trading will literally become second nature to you.
5: Review those trades that worked well for you
At this stage, having a detailed trading journal should come in handy, so I certainly hope you have one! You will be able to identify which ones are effective for you by keeping track of the proper trade decisions you have made and the profitable setups you have made. Also, it would serve as a nice boost to your ego to remind yourself that you were able to catch some good movements in the past.