ForexStrategiesNew.com

The human mind is very complex. There are several thoughts coming up every second. You are present to some and not present to some. The thoughts which govern your trading can also be prime reason of your failure.

The thought of becoming rich quickly. Quiting your day job or buying a new sports car therefore you need to make money faster from forex trading. This leads to overtrading or giving un-necessary larger exposer to your investment. In the event of reverse trade the damage create is huge and heart burining. Forex trading would give you lot of money but not overnight or in short run. Forex trading can be made into career and money earned can give your lot of monetary happiness. But it takes lot of time to learn the skills of trading which comes with experince over longer period of time.

Humans have tremedous attachment to money. Losing money is very painful. It’s more painful as compared to falling down from a cycle while learning to ride it. The attempt in our daily life to save our self from undergoing this pain and many occasion to avoid such situation we land up taking hasty or rash decission. Later we regret. Remember in one of my article I said, losing money in trading is cost paid towards learning trading. All you can do is pay less price to learn the same, it means trade small and take small losses. You need to learn detaching your self from money to certain extent when you are trading. Taking small losses is a way to survive so that you don’t vanish, if you survive you can fight.

I can’t be wrong, I need to be right. You open a trade thinking you are going to right, the trade goes down by 10 pips followed by going down by 20 pips, 30pips, 40 pips and then you stop. When you released that you have entered a wrong trade aroung 10 to 20 pips you should stopped. It’s useless proving a point to yourself, the losses is to be borne by you.   

The psychological barriers are major killers of you account, be present to it otherwise you would be dumped as failed forex trader. Further these psychological barriers are applicable to major walks of life when ever we are dealing with money. Sooner we are present to it, better for our money management.

It always better to choose a trading strategy test it and make it a successful one. It is always better to create a successful trading strategy as compared to choosing random trades. Choosing random trades has high tendency to burn hands. There has to be an approach and method adopted in forex trading. One would not buy scripts or stock in stock market. The stocks are always bought based on certain fundamental, which is one of the good methods of trading in stock markets.

Likewise a forex trader need to trade with a strategy. Following economic calendar and trading is one of the good methods. Before you make any strategy as a full proof methods conduct some research. You need to test a particular strategy at least 40 to 50 times in low cost mode. Identify the success ratio. It the success ratios are 75 % and above retain that strategy. The test should be at least being conducted for 40 to 50 times before you conclude as a long term strategy.

The forex market is not running away anywhere, it’s here for years to come. So you have enough time in the world to conduct test. The mistake done by majority of traders is to loose money in short term and quit for ever. Give yourself at least six months for preparation. The best way to conduct research is on practice account. In practice account you’re trading with virtual money and failure of a strategy would not lead to losing real money.

A long term successful forex trader is some one who has long term successful strategy.

Remember one thing no one is born as an expert forex trader. All take birth and learn. But what it takes to become expert forex trader. One has to go up the learning curve. The process of going up the learning curve has to be backed by lot of motivation and determination. Loosing trades have direct up impact on your motivation and determination. You tend to forget your paying price to learn. The control what you have is reduce the price you are paying towards learning, trade small in order to have small losses.

While you are trading make notes of your good points and bad points. For example, you were patience enough to waiting for right time to trade and you entered a trade. Your trade was in profit but you landed up losing money in that trade. Good point here is you have learnt to identify right time to enter trade but followed by a bad point, you didn’t stop your trade in profit because it didn’t fulfill your expectation. At a certain point of time you felt you should take profit and end the trade at the same time you felt your calculation says you can make more profits. This is called mental conflict. Here you forgot one thing it wasn’t your last trade of life, taking small profit and covering up in your next trade would make lot of sense. In forex trading opportunities are immense and available frequently. If one opportunity is lost you don’t need to wait for days together for next one.

These metal conflicts such as what to do when and how do it are major deciding factors of your success in forex trading. Be present to this fact and learn to manage it. 98% success is in your mind; train your mind to success.