Optimism – A positive outlook encourages us about the future, leading us to buy stocks.
Excitement – Having seen some of our initial ideas work, we begin considering what our market success could allow us to accomplish.
Thrill – At this point we investors cannot believe our success and begin to comment on how smart we are.
Euphoria – This marks the point of maximum financial risk. Having seen every decision result in quick, easy profits, we begin to ignore risk and expect every trade to become profitable.
Anxiety – For the first time the market moves against us. Having never stared at unrealized losses, we tell ourselves we are long-term investors and that all our ideas will eventually work.
Denial – When markets have not rebounded, yet we do not know how to respond, we begin denying either that we made poor choices or that things will not improve shortly.
Fear – The market realities become confusing. We believe the stocks we own will never move in our favor.
Being calm is one of the biggest boon for the traders and this the main characteristic of an expert trader. This way there are all chances that they can become successful forex traders.
I don’t know about all chances, but it certainly helps a lot to be calm. Of course, no serenity in the world can help you if you lack knowledge and experience.
We have to keep our trading under control and if we will keep our focus on the trading markets then the income will also increase for us and we will make good profits.
Being calm is not all it takes to make a profit, but it certainly helps a lot. Still, we should do well to remember it takes a lot more effort thant that.
Setting up rules, 3 or 4 consistent rules, allows you to formulate a method based on those rules and to test the trading method. Do this along with a couple of rules for money management and you will start making pips much more consistently and avoid bad trade entries.
That is just BS. Wasted years believibg that crap. If the system is sound and the entry criteria is logical then there is no harm. Many trades I’ve was in anxiety and turned out well.
Learn to cut your losses short. Many successful traders apply this as a trading rule in their trading plans in one form or another, perhaps by having a minimum risk reward ratio where the predicted reward on a trade is always greater than the risk taken. So learn to cut your losses short and letting your profits run. It is a key element of just about any good money management plan.
I would rather say not to rely on forex trading as your primary source of living, instead do some primary job and in the mean time save some money and invest it in different places and for that forex trading is a good source to earn extra returns on that savings. Also split the investment to PAMM and other investment vehicles like mutual funds, stocks, etc to reduce the risk of loss.
When you have good [B]money management[/B] plan in place, it can alert you if your trade isn’t going to be profitable and the next thing for you to do is to cut short your losses.
Although I have known about cTrader for quite some time, it is only recently that I began to discover it as an alternative to MT4. It deserves greater exposure.
