Attempts to open trading transactions without a clear understanding of the consequences of their actions quickly knock out the bulk of the newcomers from the market.
Why is this so?
The main reason is the incorrect estimation of your place in the market and inefficient planning.
Large players survive in the financial market due to the fact that all their trading objectives (short-term and prospective) are based on special knowledge, technical capabilities, and years of experience, psychological stability and proper management of capital.
Does this sound familiar?
But statistics proves − more than 90% of newcomers leave their money to a predatory market.
… for those, who:
You must set yourself a clear goal and project it onto your subconscious mind in order to constantly control the movement towards it. The more formulated the real goals, the less risk to your deposit.
Goals in trading are traditionally defined as financial, technical, psychological and risk management.
… are based on the fact that it is difficult for the newcomers to realize that money is both a trading asset and a result in the financial market. Therefore, the main objective of each transaction is to avoid loss and maintain the necessary level of funds.
For a stable balance of these business tasks, the trader must control:
If you manage to get out of every deal with at least a zero result − do not get discouraged! Your profit is a practical experience (see here).
Your financial motivation should be supported by the correct psychological attitudes, knowledge, experience, discipline and confidence in your actions.
Experience partival victories no less instuctive than defeats experience.
… are the qualitative implementation of the trading plan, that it:
Your technical trading goals should be scalable, so the movement towards achieving long-term benchmarks is accomplished by performing successive short-term steps, with separate parameters.
So, here we go further.
… are based on the constant development of your personality: observance of the discipline, organization of the working time, control of emotions.
The psychological attitude in each transaction should be positive (regardless of the complexity of the goal!), without a doubt, fear and other subjective concepts. Whether you succeed in achieving this goal or whether it will have to be «adjusted» to new conditions − is a secondary issue.
For effective development of the psychological goals you will need:
A stable psychological state during the trade will ensure the realization of all the goals from the series «success», «wealth», «pleasure», «ambition».
No question is so difficult to answer as that to which the answer is obvious.
... this topic is given a lot of time in training and very little − in practice, although it is precisely the right management that is a prerequisite for achieving all the goals in trading. For risk control, the following must be installed:
If the amount of loss approaches the critical levels, you must stop trading, analyze mistakes, correct strategy, and financial and technical goals (see above and see here ).
It seems that everything is simple, but here's the problem: the market likes to create ...
... arise when the first successes create a «false» sense of control over the market for a newcomer, and cause even a technically competent trader to violate the principles of the systematic trading.
So, the «trap»№1: Money as the main goal of trading
It is difficult to understand those who want to get out $1 million of $100 in the shortest time and with minimal effort. The desire to make a profit is quite reasonable, but money should not be the only goal, because:
Your goal − to earn a little, but stable, and − in any market.
«Trap» №2: Personal ambitions as a «false» goal
Destructive aspiration to be the best (as an option: to earn the most, or something to prove to someone) can lead to the collapse even of very experienced traders.
The cure for this problem should be sought in the field of psychology and control of emotions, and therefore − just a few tips:
Your goal should be adequate to your abilities and financial capabilities − of course, provided with proper management.
«Trap» № 3: Non-compliance of the goals with the current market
All trading goals must be adaptive so that the trader does not face the dilemma: «all or nothing», «now or never», «just like that, and not otherwise».
The market is volatile, and those ideas, methods, strategies that worked well yesterday, under the new conditions may prove ineffective. The trading system itself must give you a signal about the need for correction, in addition, your trading opportunities may change and, accordingly, you will have to adjust your trading objectives.
Always leave at least one more trading opportunity as an incentive for self-confidence.
And some more practical remarks ...
... those who still doubt their trading abilities, can find additional opportunities for earning in marketing. You can:
Always treat trading as a full and active business.
Remove from your mind a rigid rule of «trading = money».
Look at it this way:
you can enjoy not only the result, but also the very «voyage» for profit, and also constantly look for incentives for personal development.
Your goals should be tangible − but quite achievable, difficult, but interesting.
In the world of business, the people who are most successful are those who are doing what they love.
If your goal is to become a real trader, then you need (at least!):
The difference in trade between a novice and a professional is obvious: one runs after an imaginary enemy, does not catch up and loses, the second − is sitting in ambush and shooting at the target.
Moreover, it is important not only to run in the right direction and aim well, but also to make sure that the trunk is not aimed at you.
... it is recommended:
If you have correctly chosen the goals in trading, then your dream will be healthy and calm, and the result on the trading account is stably positive.
Trading psychology is one of the essential pillars of the Forex success, so even if you are an experienced trader, you shouldn’t dismiss a trading psychology advice.
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Grow your patience, boost your trading skills, learn to avoid psychological traps without drawing your live account.
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