Success within the world of trading is anything but a given, as risk is located around every turn. That being said, you should never let the potential risks associated with trading deter you from viewing it as a viable form of investing. Forgetting all the “get rich quick” and “instant success guaranteed” schemes that are consistently bouncing around the web, what you need to grasp is that while fast cash is unrealistic, slow-paced profits certainly aren’t out of the question. Having an effective long-lasting strategy can easily put you within touching distance of profit, with there being absolutely no doubt about that.
Understanding that you can indeed make the forex market your own is part of the battle, but confidence will only carry you so far. Helping you to figure out what’s what and what’s not when it comes to forex trading, we have compiled a three-step formula for finding forex success.
Understanding your own trading psychology is critical to being a successful Trader.
Are you focused on trying to make money? Or are you more focused on trying not to lose money?
The truth is that making money is the easy part. It is keeping it that is so hard.
Most of the trade do have profitable trade atleast 50-60% of time even more, but the hard part is in losing trade you lose more than what you have gained and thats why most of traders are not profitable.
The difference between being profitable and not profitable or modest and substantial returns is not about the frequency of being “right.” It is about how much do you MAKE when you are right and how much do you LOSE when you are wrong.
Don’t trade to be right. Trade to make money. In order to make money, you have to lose less.
Formulae for Trading Success is as below
H + W + P = E
Hoping + Wishing + Praying = EXIT THE TRADE!
Let’s face it, no matter the outcome of a trade-lose, win, draw, and even the miss-traders are rarely satisfied with the result. This is exactly why it is so important that we utilize the two most powerful words in a stock trader’s vocabulary..and no… it does not involve four letters! The following is a list that you can use these two words with. You will get my point. Of course you can add to it if you like.
I missed the trade…SO WHAT!
This trade did not work…SO WHAT!
I excited a profitable trade too early…SO WHAT!
I excited with a loss too quickly…SO WHAT!
My stock gapped against me…SO WHAT!
The stock recovered without me…SO WHAT!
The market is not trending…SO WHAT!
The market is consolidating…SO WHAT!
The market is breaking support…SO WHAT!
The market is busting out of resistance…SO WHAT!
The economy stinks but the market is going higher…SO WHAT!
Consider below timeless qualities essential to speculation:
1. Self-reliance: A man must think for himself and must follow his own convictions. Self-trust is the foundation of successful trader.
2. Judgment: That equipoise, that nice adjustment of the faculties of one to the other, which is called good judgment—essential to the speculator.
3. Courage: That is, confidence to act on the decisions of the mind. In speculation, there is value in the dictum: Be bold, still be bold; always be bold.
4. Prudence: The power of measuring the danger, together with a certain alertness and watchfulness, is very important. There should be a balance of prudence and courage; prudence in contemplation, courage in execution.
5. Pliability: The ability to change an opinion, the power of revision. He who observes and observes again is always formidable.