We continuously face two major emotions through our trading journey: one is fear, and the other one is greed. Every regular Forex trader is familiar with the common tickling feeling when he sees the price is following his expected direction. When he sees the market is shaping into a fertile field for him, he cannot but long for leveraging it out to its maximum potential. Out of his fear or greed, he either will set for a low profit take to end up with a poor fortune, or he will set a too high profit-limit to watch the market taking a reverse. In both ways, he cannot earn as much as the market was ready to give.
Improvement Path for Forex Trader
To achieve the maximum profit level, traders must form a serene and unfluctuating state in his mind. Now, our emotions are not something that we can handle easily. We need to know how to incorporate that state.
Here are some helpful and effective tips on how to form a “Zen” state in your mind to achieve the highest possible profit.
1. Learning comes first
No matter how cliched it sounds, it is the irreplaceable and irreversible rule that everyone must follow. Learn the most you can and don’t settle until your current knowledge about all the trading procedures will suffice. Future investment is a tough task and you must follow rules. If required, get a paper trading account so that you can learn with zero risk.
Using a demo account can be the most favorable way to learn about the market’s nature and all the instruments a trader has to use while trading. But use the instrument in a very strategic way to become successful at trading.
The best time to join a trade and the best range for setting pertaining stop-loss or make-profit orders, ways to utilize the different technical and fundamental analyses, and many other complex concepts take time to be perceived. By demo trading, a learner can tackle all those concepts and learn them by spending virtual money. It means he will not have to lose a penny while educating himself.
2. Writing down the plan
Written or not, there is a plan for every work and task that we need to execute. These plans sometimes form up all on their own, and sometimes they need to be constructed with proper care. While trading, people should go for the second kind of plan. They need to sort out all the potential obstacles on the way to their ultimate goals and all the probable situations that they may have to go through. After that, they have to come up with considerable and proven strategies to deal with all those obstacles and situations. That way, they will be able to implement those strategies at the right time and prevent further loss.
3. Learning to say no
It is more crucial than it appears. Traders not only have to learn how to say no but also, they need to learn when to say it. It is quite common among the traders, after undergoing some winning streaks, to expect more from the market. Besides, their positive attitude and self-confidence often lead them to engage in trades just because they feel those trades will be profitable. In most cases, blind faith in the market evokes nothing but disasters.
People should never skip inspection and analysis of all the variables that indicate a bad or good trade. They should do it before joining every trade regardless of how optimum the market may appear.
Other than all these, the ultimate tip is to make one’s self better. Like all the other achieve-worthy traits and things, becoming one’s best version is a tough and long process. Being in a hurry or advancing without a plan may reverse the whole process. So, be calm and brace yourself through the long journey of learning and practicing.