Be a confident trader!

The slogan knowledge is power has been tweaked by none other then me. It his now been changed to “knowledge is confidence” I believe this is true when it comes to forex. I think that many traders fall victim to becoming emotionally attached to the market. One thing that a trader knows is that the market will move in any desired direction whether you like it or not. Why be in love with a market that doesn’t love you back. :tongue: No but really there is a better way to become a confident trader and that is gaining a knowledge and a solid foundation for your trading. Many trader seek robots and magical formulas to eliminated the guess work of the market. But like any business you get what you put in. Why go into a war not knowing where the enemy is at and where there attacking from? You must have knowledge you MUST educate yourself. If you think that you can go into a war without a strategy then you will get chewed up and spit out,

In order to tackle psychology of trading you must have a healthy outlook on the market and realistic expectations. You have to know that you will not win every trade. Most new traders get up when they win and down when the lose and it becomes a roller coaster ride of emotions. Rather then concentrating so much on winning every trade concentrate on managing your money. I would like to think that one common goal of every trader is to make a profit. When I trade of course I would like to win every trade but I know that is not always going to happen. Pride yourself in taking the signal and following your trading plan rather then beating yourself up over a losing trade. Just because you lost a trade doesn’t mean that you are a bad trader. Give yourself credit for taking the trade for recognizing what price was suggesting and for having the guts to press the buy/sell button.

I’ve come up with a way to combat the feeling of being wrong or losing a trade. It’s only natural to not feel on top of the world when you lose a trade. Think about it this way, if you have set your stop loss correctly if your take profit is set in a valid area and you took the signal that the market gave you, your plan was traded and if it is indeed a loser it will prove you RIGHT still because you had your stop in place and it took you out because the sentiment of the market change. So keep your head up. You win in the end because not very often will price action signals will produce LOSING trades. So learn to trade what you see and not what you think. But first you must learn to see the market and thats something that will come with added screen time and practice.