Forex Trading Psychology – 5 tips to improve discipline while trading Forex
Do you know that emotions and trading don’t go well together? Being emotional will lessen your chances of achieving success and run the risk of losing more than what you earn. In this article, we will tackle the five points on how to boost the self-discipline that can guide and help you with your trading journey. A proper Forex trading psychology is a determining factor to become a successful Forex trader.
1. Discipline, not money
It may sound funny, but the first thing to do when venturing the world of trading is to forget about the money. Is it possible? Isn’t trading all about money? The goal of each trader is to get as much profit as possible through speculation. But to achieve your goal, you have to concentrate and focus on the things that make money and not the money itself. Start thinking in terms of techniques and strategies in trading, and if you do that, the money will come.
2. Make a list
Write down everything you want to care about related to your trading activities. Why do you trade? Come up with a list of easy to define goals and how to achieve them. And place the list where you can see it while trading. When confused, take a look at it and remind yourself of the bigger picture. You must have a well-defined strategy and goals to stay focused and motivated.
3. Someone is watching over you
Here is another technique you might want to follow. It works for both new and advanced traders. And what’s good about it is it very simple to apply. If you have heard about famous traders and pick any. The secret is learn something about his trading style, his personality, and accomplishments.
Now, for the next step. Imagine that when you trade, this man is watching over you. Every deal you open, every amount you invest — this man can see everything. It will not only boost your discipline and your confidence but also reduce the time you are being distracted.
4. One day rule
Promise and tell yourself to stay focused for one day only. Lots of famous traders are using the same technique. When they tired and not able to practice, they tell themselves to sit down and draw one straight line. When you are okay and ready to practice, of course, won’t be only one line. Secondly, when you find yourself dedicating several hours. Keep being disciplined for one day only, but every day. Soon you will find that it is much easier to sustain discipline and that it is becoming your second character.
5. Stay calm
Keep in mind that discipline is your friend, not your enemy. Although it doesn’t seem like enjoying, it can give you a lot of time and money in the long run. By learning how to stay disciplined at the very start, you will find it more comfortable to abide by the rules later.
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