Many traders heard that the market is a game. Get the right numbers, the right calculations and you will be ok. So why is it that so many trader end up on the losing end of the market? The answer is interpretetation. The numbers dont lie, but your mind and feelings do. Your hopes and fears can make you seen things that just arent there. When you trade in Forex is more a matter of the mind than it is about the numbers. Any trader can tell you that is a game of psychology. When we talk about forex psycology we talk about how much do you know about yourself, your trading and your reaction to win or lose positions. This is key to know how successful you will be. When you know yourself, and are aware of how you will react under certain market conditions, and what you will do to protect yourself from self-damaging decisions, you make the most of ever changing currency market environment. There a lot of trader that makes these mistakes: *Poor trading practices. *Too much risk, with big lot sizes A certain type of trade may not go down well with a certain type of trader. For example, a very short-term, aggressive method of scalping markets, for instance, may look encouraging in theory but may prove to be completely irrelevant and stressful with a person who is highly analytical and risk-averse type. Aggressive trading can be a disaster for someone who plays safe bets. Your biggest enemy when you are trading is you. Is not the market, is the wrong decisions that make you lose money. So here are some suggestions to become a better trader: *Be Disciplined. The trader should have a plan and stick to it. Need to place the take profit, stop loss and key levels with the right information. A wise trader will not let excitement, fear, or someone else’s influence make him decide what to trade, enter or exit a position unless he himself/herself sees sense in it. The professional trader know when to stay out and just watch the market. Sometimes the best trade is not trade. *When you are trading do not play favorites with currency pairs. Focus on the technical aspects, ane the fundamentals. *Detached from th market excitement. Dont go on checking the prices all day long. Prices are not important, signals are. So wait until you have the correct information and trade accordingly. Stay focused on the large trends and not try to react to evey move. Remeber you can not predict what is going to happen so prepare with the right tools. One last important tip for you to keep at the top of your mind, make sure you are only increasing your position when prices move toward your targets (of course if you really want to add to your position). I have seen it many times that when a price starts to move it usually continues in that direction for some time. So do not add to your wrong positions with this hope that you recover the losses when the market turns around. So please remember the key to become a profitable trader is to be discipline and have patience. Dont open positions just to recover from a lose, wait to the market signal go in your favor. If you apply this suggestions you will become a successful trader so don`t panic and trade wisely, make the right decisions, get the right information.
Be a successful trade, anyone can do it.
María
Fx-Megaforex
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Just a thought.