Trading Forex: The Inner Game

Filed under: Learn Forex Trading |

Trading is not unlike the world of professional sports in some respects. You are competing against other “competitors” (market participants) and there is always a winner and a loser for every trade that is made. Watching the ebb and flow of a forex chart is a window into the mass psychology of the market. Those who let their trading become an emotional venture usually lose – and those who remain objective and professional have a much better chance of winning.

 

There are many people who have good trading methodologies and should be profitable, but they continue to lose money to the markets because they are not in control of the inner game of trading. This is not unlike the world of sports. There are many people who have a sporting ability but do not make it to the top of their game because they lose their nerve on the big shot or the important round. It is sticking to your principles and playing how you normally play when the going gets tough that separates the winners from the losers. In fact, when the going gets tough, the winners normally raise their game and focus even more than usual.

 

Taking the right mindset into your forex trading is essential for your long-term success. Keeping a trading diary is a useful exercise where you can write down, in addition to your actual trades, your thoughts and feelings about those trades. Perhaps you will gain some interesting insights if you start feeling out of control when making certain trades. It is important to be honest with yourself and to be accountable for your own mistakes and not start blaming everything but yourself. So remember, being a successful trader means not just mastering a trading methodology and being organized, it also means mastering your emotions and being professional. If you don’t, it could be very costly indeed.

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