The Mindset of a Professional Forex Trader

Filed under: Learn Forex Trading |

If you want to be a professional forex trader, I believe that you need a certain mindset to succeed. This mindset comes in the form of unshakable confidence, an unemotional attitude, and a belief in your system or methodology.

 

The confidence obviously comes from making successful trades. The longer that you have been trading successfully for, the more your confidence will grow. If you have been trading for ten years and have experienced numerous drawdowns during that time of 25% or more, and have recovered, then a drawdown of 20% or so will probably not do much to shake your confidence. However, if you have been trading for only three months, and your bank is down by 25%, you will probably be tempted to go back to the drawing board.

 

It is also important not to get too emotional about your trades. It is probably impossible not to feel any emotions at all, but if you can control them and not let them affect your trading decisions, then you will be well on your way to becoming a successful forex trader. Try to see the markets as a game – some you win, and some you lose. It is like a giant chess game. Just try to win more than you lose.

 

You must also have a great belief in your system or methodology, especially when things are not going so well. It is no good to keep chopping and changing your rules and methods. If you do this, you will never get an idea of what really works in the long term. Try to stick to your system or methodology. Just make sure that you give it a rigid backtest and live test first before trading with real money. But once you are happy with it – stick to it!

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