The path of currency trading is full of obstacles and distractions. It often gets tough for a trader to hold himself straight on the line and face all the complications raised from the market. However, the hardest among them is to remain unbiased emotionally in the face of fear, despair, and greed.
The below-listed guidelines will surely help you with making your mind impregnable with any situation or event. After learning them all, just incorporate them into our trading style and practice them deliberately and consciously to get the best outcome.
Learn to be a better loser
In the currency exchange business, one of the inevitable features is losing. Every trader has lost and will lose, and there is none who can save himself from suffering one. However, losing is a kind of taboo in the eye of our society. The first instruction on the path of achieving an unmoved mind is to learn how to deal with losing. What to do or think after getting hit by a big loss? How to respond to it?
The best-proven strategy is to take a momentary break from the business and give one’s self-time to completely recover the shock and pain of the loss. Because most traders tend to make wrong and unnecessary decisions when they further continue to place orders with the shock and revenge in their minds. In order to buy commodities online, you need use strategic steps. Emotional attachment in this business can put your career at great risk. Always follow simple technique and trade in a discipline manner.
Welcome winning with controlled elation
It is indeed a counterintuitive idea not to celebrate the winning with a big heart and utter joy. Because winning is obviously and undoubtedly the reason why we have joined the market. But there are some common traits that traders show while facing a win. Some wins come with great fortune, and market joiners don’t have to undertake huge pressure or work overload to gain money at that time.
So, it makes them freak out to pour all that money into his sack with giving so little effort. They get tempered and often resign from that trade in fear. If you have ever faced such situations and don’t know what course to follow in such times, we recommend you follow and stick to your written plan.
Do what they needed. Check and recheck all the indicators and look for signals for potential reverse. If you can reason with the possibility of the market’s continuation, have some faith and don’t leave the trade.
All our lives, we have been taught not to quit anything in the face of a critical and confusing time. We are meant to do and redo the same task repetitively until we gain mastery over it. It’s like the time when you are trying to learn a musical instrument. You have to keep practicing different notes and techniques until those notes and techniques become natural to you. Many traders mistake trading with those musical instruments.
If things go in the unexpected direction and try to fix them by making some more mistakes, it may cut us from all the connections. When people overtrade just to reconcile an immediate loss, most time, they do it from vengeance. Vengeance is a negative emotion, and nothing positive and hopeful will come from a negative source. So, we need to be highly cautious about the feeling we are undergoing.
The general scalpers and day traders mostly practice overtrading. To stop losing beyond the line, traders should set a losing limit for themselves. When the losing streak touches the number, they should call it a day.
Knowing is just the beginning of any process. To complete the process, one needs to implement the material in a real-life situation and practice it repeatedly.