How can I continue to develop a profitable mentality toward forex?
I know this incorporates discipline and all but as a trader you start off crawling, but after a while you start to stand up. Not too long from that you continue to walk, then fall, & crawl, walk, fall, crawl. But after a while Walking starts to become a new reality and now I have the ability to run & walk as I feel.
I use the “walk and crawl” as a metaphor for being profitable and unprofitable. Knowing when to increase risk & scaling into profitable positions are some of the professional advantages after 2+ years of disciplined profitable trading.
Even though trading in itself is a paradigm shift, its one thing to conceptualize it but its a completely different thing to experience it. I want to hear from some of the best on BP on this. What is the best profitable trading mindset for a day trader in the Forex Market?
Is forex about emotion control? (I exited my winners and make 5k in one trade, time to close the charts and take my mind off forex until london session)
I’ve noticed after a winning streak a psychological thing occurs and I end up ‘overtrading’ without realizing thus contributing to losses (the fall). I’ve already started a process in order to break this psychological outlook but at the same time I wonder, how long will it take? Will I still be like this a year from now after I’ve been trading forex for 3 years? Will I still have the ‘urge’ to click buy or sell because of my winning streak?
I am at a pivotal turning point in trading and I’m trying to ensure that I continue to be profitable. I would like to know and hear from other established traders as well as traders who may be experiencing the same thing I am. How can we defeat this ‘overtrading/non profitable mentality’
It is encouraging to hear that you are making progress in your trading and even better that you recognise psychology as being the main driver of winning or losing.
The tendency to over trade following a winning(or losing) streak is a common trap for many traders(new and experienced). There are a number of ways of tackling this, mine has been to include in my trading plan , a limit to the number of trades or percentage gained/lost in a day. Once I meet my limit, I stop trading for that day.
Having this level of detail in my trading plan and having it on a separate sheet near my computer reminds me of what my objectives are.
I know that these actions have worked for me in the past and still do, however do not underestimate the power of your mind to encourage you to over trade at any point in the future. Discipline is the key!
I hope that you may find this useful and other traders should comment on what has worked for them. You need a number of different perspectives.
No, you can have a strategy that will work to some extent, and you know when to use you’re strategy, and it can be profitable in the long run, it will earn you a decent living, I’ve been there, it beats working. But now I’m really getting to understand what’s going on, I have been quite amazed at the significance of 5 or 10 pips on the higher timeframes, if you look at the weekly charts even you can see S/R being hit within a pip or two and the difference of those swings being broken or sustained, is so important to trading on your hourly chart or less.