Winning Forex Traders vs. Losing Forex Traders
You and another trader can use the exact Forex trading strategy, but one of you may win trades while the other loses. This is because the trader who is winning trades, thinking fundamentally differently from the one who is losing trades. This displays that the mind contains the difference between winning and losing trades. This article will help you to know how to think like the trader who wins trades and to make the necessary correction to your trading from the knowledge gained.
Your expectations should be achievable
Your expectations should be realistic about the amount of money you can logically make from the markets based on your starting money. Never think that you will get rich quick. This will help you to avoid emotional trading and make money faster. You should not over trade and (or) risk too much, which can lead to making big losses. It is crucial that you have an expected amount of money that you can make in trading while using a workable forex trading strategy and money management.
You should manage risk
To become a winning trader, you should be comfortable to lose money and trade emotional free. You should continue managing your risk regardless of how many trades you have won or lost. Every moment in the markets is unique, and anything can happen at any moment. Thus, you should not over leverage your account on a hunch that you have landed on the “sure-thing trade”. Trade with money that you are sure that you can afford to lose.
Take your profits
Take your profits with a well set strategy and understand the risk to reward and its importance as a core in making money in the markets. You should not meddle in your trades unnecessarily and set your mind to trade and forget. Believe in your trades and let them go on, when they are live. Your profit should be more than the money that you risked on the trade, and you only have to win 35-50% to make money consistently in the markets.
You should have trading strategies
You should know that even a simple strategy like price action trading is successful because what makes it work is managing your emotions, having a simple trading strategy and being disciplined. You should not over-complicate your trading strategy while you can use just a simple price action to trade. You should master the markets you trade, one at a time, and you will know when to trade and when not.
To become successful in Forex you should set your mind to be patient, make a trading strategy, go slowly when trading and do not try to control the markets but rather wait the right chance to appear in the markets. Realize that the market is a untamable beast and you can only control the way you react to what the markets offers you. Price action trading will give you a high-probability to enter a trade giving you the confidence and clarity to trade because you have been waiting patiently.