What if you could connect a USB cable to the back of your mind and have software uploaded? And that software could help you trade like an expert trader in no time. Well, the sad news is, this is just a fragment of our imagination and is far, far away from reality. However, it is very much possible to upgrade your trading journey with some mental training that we will talk about today. Visit multibank group
The most seasoned traders will tell you that your own mind could play games with you and there is a good chance that you would not even realize it. What you must do is train yourself into having that mental strength where your primal brain processes cannot dominate your rationale to hamper your trading journey.
Let us now look at some thought processes as well as mental routines that will help you in the long run if you stay consistent. What sets apart an amateur trader from a professional is the mentality with which they trade. It is a key differentiator between people who are successful people and the ones who are still trying to find stable grounds. In short, the secret of being able to trade successfully is to train your mind:
Detach yourself from your work
This is probably the one, highly defining characteristic of a veteran trader that they can disconnect their mind from live trades. The ones who are just getting started or the ones who seem to be losing money are unable to do this. The core idea is to feel no emotion at all when you buy or sell trade. When you do this, when you achieve mental equilibrium, there is a much better chance of avoiding emotion-driven trades.
Once the trade is live, do not look at the charts
Consider this a hack that professional traders have developed–avoid charts so you’re not always hooked to your live trades. Once your trade goes live, move away from your screen and stop looking at the charts. It does more harm than good as staring at the charts by no means indicates that you can control the market. Let go and allow your trading edge to play out.
Less screen time, no second-guessing
Call it a mistake or maybe a major blunder–watching the live trades move up and down is not fruitful at all. It is the same as trying to follow a diet and heading to every fast food joint that comes your way. You’re setting up yourself for failure. There’s not a single reasonable argument that could probably explain why you need to go through the torture of being glued t the screen just watching the markets go up and down.
If as a trader you keep staring at the screen all day long, you would end up second guessing most of your trades. You will doubt your trade idea the moment the prices don’t move as you expect them to. You’d start doubting the profit target you have in mind if it seems like the market is moving against you. Such doubtful scenarios are endless. The point is–to detach yourself from the market, and stop looking at the charts.
Start thinking of trading as a war
In the market, you face stiff competition. You are up against a number of different traders who have more money, experience, and knowledge and who knows they even have far greater intelligence levels than you.
But, you would have that strong sense of being the best in the game and you would be far more disciplined than most and that is what would play out to be your strong suit.
Picture this: every time you trade, every time you hit the buy or sell button, there’s someone standing behind you with a gun. Now in real life, things are not that extreme but you need to take your trades that seriously if you want to be one of the top traders in the market. Remember that you are up against real humans out there. Behind every computer screen and chart is a person like you placing their bets. Therefore trading is a mental game, a battle of wits where you play against the odds. You’re in the territory of the ones with big accounts–we’re talking banks and hedge fund managers. It is time to put your game face on and quit thinking that it is a game where you will become a billionaire overnight.
Don’t come to the battle unprepared
There are so many traders, who look at their charts and start adding funds to their live accounts that they have nothing to lose! Like we said before, this is a battleground, you are no less than a soldier on the battlefield. Please don’t be foolish trying to beat someone with a rifle with your pocket knife. You are digging your own grave. If you do not wish to go bankrupt in a week, you need to train your mind and brace yourself for a mental test that awaits you every time you start trading.
You need to approach the market confidently and thus you need to be prepared. Being reckless or foolish will take you nowhere. There’s a fine line between being confident and being so overconfident that you end up being foolishly aggressive with your trades. Managing your money and laying out your trading plan before you carry out a trade is a major part of your preparation.
Don’t let money get to you
Money plays different kinds of games with people and everyone has a different response to it. You could be earning it or you could be losing it, there is bound to be a mental impact on you when it comes to money. Successful traders are well aware of this problem and they know that the key to taming this is to train your mind. Here are some key obstacles that traders face with respect to their money:
- Fear of missing out. Fear of loss is the reason why so many traders end up making small losses big. If you fear a loss in the market, you would be reluctant to trade and this fear will make you let go of the good trades.
- Risking too much in every single trade and the consequent problems.
- Not knowing where to exit the market or the ways in which one could come out of the market
Lacking a capital preservation plan in general is another factor that leads to failure.
Apart from this, if you want to know about How Technology Is Changing and Affecting Forex Trading? then please visit our AI Tech category