Tue. Oct 26th, 2021

Success and failure in currency trading
Success and failure in currency trading

Trading in the markets offers great opportunities for profit, and it is the responsibility of every trader to improve and develop the skills and discipline necessary to succeed in trading. Over the years learning and understanding the markets, I met some traders and friends who made the trading process too complicated; they always blame others for their losses and do not take responsibility for the outcome they have. Sometimes, I hear words like “the market is our enemy”, “not winning Forex”, “machining”, “the mystery of Forex”, and so on. In my opinion, these assumptions are incorrect; the secret to success in trade is you and the only enemy you are again.

In fact, trade is like any other profession; we first learn the basics and then expand towards a more sophisticated and deep understanding in the field. Therefore, there are no qualified professionals in any field who have not reached a level of expertise without hard work and considerable experience. Any professional field requires commitment and the will to go through success and failure. Actually, failures can be the biggest teachers, we should study the failures to become a better trader.

  1. First, traders should have a firm knowledge and understanding of the markets. There are some traders who enter live trading without firmly understanding what the trading process entails, and this inevitably leads to early failure.
  2. Having a well-defined plan is very important to ensure the success of the negotiation as it provides the trader with the guidelines, rules and direction to achieve their goals consistently. Therefore, it is one of the best tools that helps us maximize profits and minimize risk and losses. If we operate without a well-defined plan, we will find ourselves on the balance of losing and winning, and this will lead to failure.
  3. Have a solid money management strategy and adhere to complying with its rules as money management is the most important element of the business plan. It mainly acts as a risk control and allows traders to trade during periods of dispositions and lose streaks without exploiting their accounts. In case of mismanagement of money, there will be counterproduction, not only the obvious loss of financial resources, but also the emotional stress that is set on the trader. This stress can manifest itself in the form of depression or negative behaviors such as fear, anger, and disappointment.
  4. A good business approach: Traders need to have a good technical strategy to help them deal with the market and spot the possibilities available to operate. The business strategy should be simple, easy to understand and easy to use. In addition, it is important that you have obvious rules and conditions for tickets and that they exist to facilitate the negotiation process. Traders need to spend time practicing and training to use the trading strategy to make it familiar and effective. In addition to these tools, there are several psychological and behavioral reasons that make traders successful in trading, such as:
    – Patience and perseverance.
    – Adherence, discipline and commitment to the negotiation process.
    – Adherence to a set of trade rules.
    – Maintaining a positive attitude and confidence.
    – Learn from previous mistakes.
    – Take full responsibility for the whole trading process and stop blaming the market.
    – Get used to forgetting the latest deals, winning or losing and waiting for the next trade.
    – Evaluate the risks and then the benefits without greed.
    – Think in terms of probabilities, rather than emphasizing a business outcome.
    – Depending on yourself in the trade. To operate successfully and professionally, you must learn to follow your trading plan, which includes a money management plan. We must learn to think in terms of probabilities, but not of certainties, and to accept the fact that losses are part of both trade and victories. We should stop blaming others and take responsibility for our mistakes in order to fix them. Adherence, patience and discipline will be key to a successful business career. Remember, experts are not born. Follow your success.
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