Mindset Mindset Mindset!!!
Hello fellow forex factory traders...
Just joined this forum and noticed how most of the threads are about systems and strategies... almost too much information!!!
So I thought I'd start my own thread on what I think the most important part of forex trading is....... Mindset.
Traders don't fail because of strategies that don't work, the majority of the strategies out there are winners. They fail (I hate that word) because they don't know how to handle losses, and also the winnings. I've been there...
When you lose... smile... take a deep breathe... analyze any mistakes which you may have made so you don't make them again. Any hey, sometimes u just gotta accept that the market doesn't always do what its supposed to do!!! lol.
When you win... pat yourself on the back and do a few star jumps lol... whatever makes u happy.
A quote which I read from someones post sums up the mindset of a successful trader....
PATIENCE + DISCIPLE - GREED = $UCCE$$... :-)
Happy trading all.
i agree except the part when you mention that the market doesn't do what it suppose to.. i think it does.. but not what the trader expected..
Also Greed is GOOD! Anyways, this is just my 2 pips..
Welcome to FF. I think this is an excellent idea for a new thread, and I hope that others will post their insights here.
I do, however, have to disagree with part of your post. I have no real proof of this, but my experience tells me that most traders fail because they do not have a true edge. I don't believe most systems work, at least not in the long run. I'm not trying to minimize the importance of trading psychology, because I believe it is vital to success in this business. Midset if often the reason traders can take a winning system and still lose. Discipline and emotional control should never be overlooked, but don't make an opposite but equal mistake of using an unsound strategy.
Exactly what I was going to say.
Very true... the problem is people cannot stick to their rules of trading, we are all guilty and this is where it all goes wrong.
If you stick to your trading plan, you will be successful, providing that you have a method/system that gives good returns.
I have found myself in a situation where I made a mistake like hitting the "sell" button when what I really meant to do was hit "buy." Then the trade instantly goes my way, but I discover I'm losing money because of my mistake. Now I have to exit and and decide if I want to take a worse entry price or just miss the opportunity and wait for the next setup (in most instances this is best). Being greedy, I enter the trade in the correct direction at the higher price and "hope" that it continues. Of course it doesn't and I'm stopped out. Now I have a loss (both actual and opportunity) when I should have had a gain. After this, the natural reaction is to revenge trade in an attempt to gain the money back and the cycle continues.
This is why mindset is so important. You have to stay focused and disciplined with eye on the horizon. Our goal is way out in front of us. Trading is like brick laying; you have to do the small things right, day after day. No one trade should make or break us. So long as you don't compound your mistakes, they can easily be recovered.
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