Making Your Forex Trading Decision
Hey Traders! How is going your trading business? I think you will really enjoy and learn something new but important things about trading decisions in this article. Today, in this post, I will discuss about some important aspects that you can relate to “Trading Psychology”.
In fact, this article is going to explore many topics that every trader deals with every day in their trading journey, such as: making trading plans and decisions, when to trade or not etc. If you want to learn the depth about these things then read it carefully and trust me, these stuffs are very important in trading business. I hope it will help you to run a successful trading business.
When a trader become anxious, you can be pretty sure that, for the next few hours or days, the trader is going to lose his/her money. Because, all the basic instincts in your brain, which is known as the “caveman brain” or all the emotions that is designed to stop you to become successful in your life, take over your decision making. At every stage in your professional life, such kinds of emotions will not let you take the right decision at the particular moment. And traders with this emotion will not be able to earn much profits from the trading markets. If you started to trade and you are scared to take a decision, surely you will take smaller positions on good ideas and that will cut your profits too quickly.
We have seen many times that, successful traders don’t spend much time on taking decisions. They are very confident with their decision, and in fact, their trading plan is much more transparent. If a decision turned out to be wrong, it does not matter at all. It is a simple scenario on trading business and you have to move on. So, when you have to take quick decision and you know that, there is a chance to get wrong, don’t sit there and don’t be panic at all. It will be a worst decision if you do so. Instead, get off the desk; go for a walk in the park for an hour.
Emotions are the enemy of good trading decisions
“Emotional Robustness” – it is one of the essential things a trader needs most. You will find many very smart people who want to trade, but you don’t have to be smart to be a successful trader. Trading business is not very easy at all. Many people think that, “okay, I will work hard, I will do all the research and then I will be successful in trading.” It is very true that, to be successful in any profession, you need to be working hard and must have to do all the research. But in trading business or all the business like trading, you need to learn how to deal with the emotions of being a failure. Without this, you will not be able to run a successful trading business. Trading is not a game of unrealistic expectations.
In some cases, trading is like being a police officer. Most of the times there is nothing going on, in fact, most of the there is nothing to do, and then suddenly you have to go really fast. You need to be strong emotionally and also you need to be able to act decisively. You have to believe that, hesitation is not a friend to the forex trader. To be a successful trader, it is essential to deal with emotional issues very strongly. The way you make yourself confident and also make quick trading decisions is by mastering an effective trading strategy.