Forex traders should be always positive minded. In a business you can make profit and as know you can have loss. By having any loss if you give up then you are a loser. You have to overcome the mistakes and work for better earning. You can learn Forex trading practically from the demo account and get ideas of how you should control the loss. God hope and developing the knowledge are very important.
3 Likes
@Nathaniel_Imas great mindset successful people know that you learn from your mistakes and as long as you understand that you can learn and persist at anything.
But just remember when you are analyzing a mistake you have to be 100% percent honest and brutal with yourself to understand where you went wrong…and how you will improve next time…
3 Likes
This is a worthwhile thread. We all look at the same charts. We can all read the same text-books. We’ve all watched the same Youtube clips. What really sets traders apart fro each other is mind-set.
There’s a lot comes from this though. Learn from mistakes. Learn from your losers. But remember not all losers are mistakes. And spend more time learning from your winners.
3 Likes
Thanks for this timely reminder! I do have the tendency to just keep moving and go find the next trade.
Of course, positive mindset is important in trading, just as in any other profession. Sometimes trader could be too positive and almost ignore all information that doesn`t fit his initial bias. Such situations could lead to underperformance and losses. That is why trader should be positive but:
-
this positive attitude should be based on confidence. Trader should neither “bevlieve” nor “hope” - these terms are not about trading. Trader should know that his strategy is profitable and brings money if he executes trades strictly in accordance with its rules. The best way to find out whether the strategy itself s profitble and check its performance in long term perspective is to backtest it on historical data. Nowadays it is possible even for those who are not familiar with coding because there are special tools like Forex tester intended for this purpose. As the result of backtesting trader obtains a detailed report on the performance of his strategy, so his positive expectations would be based on confidence in the effectivenes of the strategy utilized in trading process
-
trader should be open minded enough to be able to spot the moment when the situation becomes unfavorable. It is important to understand that something goes wrong instead of holding losing position being positive. Trader should be ready to change his initial bias is the market provides information that makes the assumption no longer valid.
Thus, trader should be always positive about his trading process in general, but realistic in each particular case. This is the only way to become a successful trader.
1 Like
yeah , should always be positive , but when making loss more and more actually to remain cool be a tough game.
its a very fine line , we have to realize why the mistake happened, if we do same mistake again , its not our mistake , its a choice.
1 Like
It’s all very well to say that we should remain positive in the face of lack luster trading performance. However, positivity requires hope to exist. Positivity without hope is delusion. Hope can only be generated if you can see a possible path forward; a different path than the one you have been traversing thus far, that “hopefully” brings about a positive result even if in small measure.
There is an agile project management methodology called Scrum. Two of the key tenets of this methodology are inspection and adaptation. There are two Japanese management philosophies, Kaikaku and Kaizen. Kaikaku emphasizes radical improvements while Kaizen guides you toward continuous improvement. These were created for manufacturing facilities but have been successfully adopted to other types of businesses.
http://www.1000ventures.com/business_guide/mgmt_kaizen_vs_kaikaku_10c.html
If we are to consider trading as a business then we, as traders, should adopt a mindset of inspection & adaptation, constantly looking for continuous improvement opportunities. Following these evolutionary principles allows us to think outside the box, to challenge long standing assumptions, to seek out new and untrodden paths.
Figure out where you are failing by inspecting your past trades and performance. Break things down into meaningful bite-sized components. Make radical improvements where possible and then apply the Kaizen philosophy to continually improve your mindset, attitude, risk management, strategy, trading plan, etc. Keep an open mind. Be quick to try new things and be equally quick to chuck what’s not working. Don’t try to fit something into your trading just because some “expert” out there says that it is the next best thing to sliced bread. There are too many experts in our industry and just as many conflicting and different trading methodologies. Try them out and determine what resonates with you and then let your performance numbers speak to their efficacy. Don’t get emotionally vested in any of them. Keep it simple. Use what works and throw out the rest. Then iterate on what works to continually improve your performance.
@Nathaniel_Imas - I don’t know that I would say that Forex trading is about “staying positive”, I think it is, more often than not - about staying true to yourself and following your system.
Staying positive is a state of mind that may not have a significant impact in the real world.
If you find that it is helpful to you in a psychological sense - that’s great, but some like to keep such emotions at bay while trading.
I agree. We should not get discouraged if something didn’t go according to plan.