Prepare to Trade Forex Mentally

The Psychological Perspective

Your first resolve should be to determine precisely what you want to achieve. Get your pen and a notebook and write it down. Be as detailed as you can as this will go a long way to help you eventually in your performance. You should ask yourself the following pertinent questions:

·          Do I want to live off my trading?

·         Is this just another means of income?

·         Am I trading Forex because I think it is an easy way of making money?

·         To make me financially independent?

·         Is it flexibility?

·         Financial freedom? And a host of other reasons

Whatever your reasons are, they must be clearly stated.

Before you start to trade each day, make sure you take a few minutes to assess your goals. This will help you keep your goals in mind as you trade, which will ensure that the larger picture is not forgotten since one can be all wrapped up in the emotion of the moment. Having a few minutes of review before the day starts helps you focus on your goals.

Be cautious of GREED. This is one of the deadliest sins to commit in Forex trading. I can boldly testify to that. Greed can cause you to operate unwisely and irrationally. Set your goals for the trading session, achieve your goals and be grateful for another day of successful trading.

Do not deviate from your plan. Remain steadfast and your goals are not far from being achieved. Remember, slow and steady wins the race. Do this and you will maintain your trading edge.

Do not allow distractions from friends or relatives since they do not basically understand what you are doing. You need to join a traders group; it could be online or in person. Eventually, make sure you have contacts and acquaintances that understand what you are doing.

Remain alert and focused. Every new trader will eventually meet obstacles on the way. Remember, “Obstacles are those fearful things that you see when you remove your eyes from the goals that are set before you”. Your actions at this stage of the game will form the kind of trader you will eventually become. My simple advice for this situation is to lean on your fellow traders. Anyone who has been in this market long enough knows this. It is part of the formative processes of the making of “the complete trader”.

If you are having disturbing responses to your trades, it is time for a little evaluation. Stick to the trading rules always. During these times, take a walk away from your computer. When you lose your emotional detachment, you have lost your perspective. You are now far more likely to place bad trades, trade with impulse and close out everything at a loss. Take a break and when you come back, you can look at the charts and your account without emotion.

Most of all, record your progress as you move along. As you see your progress down your projected path, the more likely it is that you will continue to stick to your trading plan. This in turn gives you the confidence that you need to see that your plan is really working.





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