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FX TRADING PSYCHOLOGY you don’t even have a car seat.


Our brain is not accustomed to surviving in such an environment. It needs to be trained and one has to come in peace with the fact that the market can go anywhere at any point in time. Nothing is certain. You will start to strive as a trader when you fully accept that sometimes you will be right and sometimes you will be wrong.


Rule № 1


The market is the sum of billions of individual mental processes about the future value of a currency or a stock


you might have to change each of these decisions at every stage of the trade and be ready to be wrong about these decisions when the market is not doing where you were expecting.


2. Comparable To Quantum Physics


When you start trading, you enter a totally new world. My favorite analogy about the markets is that they are as unpredictable as quantum physics. In the markets you can never know for sure where prices will go, like you don’t know where those quantum physics particles are going to end up. And just like normal physics is challenged when it comes to


34 FX TRADER MAGAZINE January - March 2019


explaining particles behavior, so is our psyche when we try to explain market movements.


We are used to living in a stable environment and we’ve built our survival mechanisms on that. Most of the time our lives depend on stable successful behaviors. For example: when entering your car, you know there is a car seat and you know you can sit in it, fasten your seatbelt and drive.


That’s not true for the markets. Everything is different, nothing is stable, nothing is sure and nothing can be


planned or anticipated.


The problem with the markets is that sometimes you don’t have a seatbelt, even worse – sometimes


Never expect the market to be stable. Never expect the outcome to be the same, even when a situation repeats itself. It can be tough because we are used to living in a stable environment. We are not used to following new rules and thinking differently. But this is the first rule you should remember and implement while trading if you want to succeed on


the market. Adaptation prepared is


key, and we need to change our mindset in order to cope with the constant changes of the market. You need to be


for


anything. That’s what you really need to work on. We will cover this in more details when we talk about The Mind.


3. The Market Is Addictive


The market can be a powerful drug and there is a real risk that you could become addicted. A few years ago a US university research team found out that the areas of the brain which are stimulated when we trade are the same ones


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