Your Mindset Determines Your Success In Trading by Yusuf Umar
In this age of information, almost everyone aspires to lay his hand on forex market. However, as the name has become a mantra in the financial industry, and many investors are enthusiastic about it, placing investments on forex is not a walk in the park. It requires a lot of careful thinking and consideration; otherwise, you are on the surest road to running into an avoidable loss. In this piece, I address some basic skills necessary to strive in the industry.
As a trader, your mindset largely determines whether you will be successful in forex or not. How rich you are does not matter. In fact, it does not matter which trading school you attend, or how smart you are. If you do not possess the right mindset, you can never be successful as forex trader. If you do not have your head right about trading forex, there is no strategy and no amount of money will make you money. Becoming an expert in forex requires some important trading psychologies which are needed to be understand in order to achieve your trading mindset.
To begin with, analytical ability is a needed tool in forex. As a trader, you must possess strong analytical skills and have the rightful knowledge and understanding of the market. Trading forex requires dealings with currencies pairing which are represented by two numbers being compared side by side. In a normal circumstance, forex trading involves some mathematical calculations and interpretation which are represented inform of charts, indicators, and patterns. These mathematical calculations are used to predict the future market behavior based on the historical background of the market. The more you understand the behavior of the market, the more effectively enhance your skill. This will expose you to becoming successful in the market.
You must also be ready to accept failure as part of the game. This is why you cannot do away with commitment. Successful people are those who have experienced myriads of failure, yet they stay committed to their goals. Professional traders understand that failure does not mean the end of the game, but a new way to know what works and what does not. If you want to become a successful trader, you must learn to accept failure as part of the game and focus on learning from your mistakes. Some traders will give up due to multiple losses, this is common and some will strive harder after the failure and move on.
Similar to commitment is risk management. The overall goals of risk management is to maximize profits and minimize losses while protecting the trading capital for later utilization. This will prevent some various uncertain elements in trading system. Your ability to effectively manage your financial risk and protect your trading capital from being over exposed to the market. Ideally, trading successful typically means growing your account by effectively managing your profits and losses and using a sound trading risk management strategy.
The real act of mathematical calculation and interpretation of chart that determines the support and resistance levels, trends etc, are not the most complex part of trading forex. The most complex part is DISCIPLINE. If you have the right trading strategy and you are not disciplined enough to follow your strategy you, will end up losing your account.
In your journey to becoming an expert in forex, you need to conform to the act of simplicity. Complicating things and making it more difficult than they really need to be is a way of human beings. This is not a new occurrence in trading. When your trading strategy is messy and chaotic especially when you have too many indicators on your charts, this can influence your mindset negatively. It is essential that you maintain a simple and straight forward strategy when trading.
In the end, DO NOT GIVE UP. Becoming a rich trader is a gradual process which might take longer than you have imagined, depending on how ambitious you are. For some, it takes months, or even more than a year. The fact is, your timeline in achieving your goals in forex is not predictable. What differentiates a successful trader from others is commitment. Once you have your head right about trading forex, you are going to be successful.
Yusuf Umar
Umaryusuf2010@gmail.com
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