FX TRADING PSYCHOLOGY
In trading you will ultimately have to overcome what is likely to be your own biggest challenge: yourself. Embrace it, it is a part of the journey!
Let us consider the two keys to successful trading from earlier:
1. Having a strategy with an edge and a positive expectancy. 2. Being able to consistently execute the strategy.
It is the second of these that we are concerned with, although we must remember that being disciplined enough to put in the work to develop a trading strategy with an edge is obviously required.
Richard Dennis who created the Turtle Trading project once made the following observation:
32 FX TRADER MAGAZINE April - June 2014
“I always say that you could publish my trading rules in the newspaper and no one would follow them. The key is consistency and discipline. Almost anybody can make up a list of rules that are 80% as good as what we taught people. What we couldn’t do is give them the confidence to stick to those rules even when things are going bad.“ (Quoted in New Market Wizards, by Jack Schwager)
In trading you will ultimately have to overcome what is likely to be your own biggest challenge: yourself. Embrace it, it is a part of the journey!
Often when I meet traders they will, at some point, tell me of their discipline challenges. Some of these
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