TRADING PSYCHOLOGY
systems is the following: I have never found a system that works for more than 6 to 12 months consistently.
Markets change – the system needs to be adapted, so flexibility is key – one needs to be able to continue to adapt even if the system in use is algorithmic. Once you have entered a trade you need to be able to get out on time. This brings us to the problem of post entry management.
Opening a
position is easy, closing it is much more difficult – you need to be able to get out in
profit and
Forget about usual behavior patterns. The market is a completely different world.
you need to be able to take a loss when necessary. Many of us have experienced a trade that is profitable and while we are considering whether or not to take some profits, the P/L becomes negative. We will cover post-entry management rules in details.
Forget about your usual behavioural habits
To reach mental discipline you will need to forget a set of common
these usual behavior patterns won’t help you survive in trading, quite the opposite – they will contribute to destroying your trading account. I will cover this aspect in depth in this series of articles.
A good mental attitude is “objective trading”, in other words, if you fail to be objective about a pattern that you see, you will start having doubts about yourself and whether you should execute a trade right now or not, you
behavior patterns, which most people apply in their daily life, and that are completely useless and even harmful in a trading environment. Not only
FX
will then miss an opportunity, which will generate pain and psychological damage. Subsequently, if you decide to make a trade and it goes bad, you will
start having
doubts about your approach – whether the pattern you have identified works or not. To avoid this negative cycle, you should be objective and concentrate exclusively on your trading.
A successful approach
Now, let’s see
what is the best way
your skills and to
to improve become
a successful trader.
The importance of training
The best way to improve your trading skills is through trading simulation like in a real trading environment. As you’ve learned the key is to be able to focus on your skills and not on the money.
During my coaching sessions, I realized that professional traders didn’t have the right tool to practice their skills and strategies. That’s why I developed a training software
FX TRADER MAGAZINE January - March 2019 31
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79
