Psychology in forex trading is an important subject. If I was to come across with a saying that explains "psychology of the market", I would say: "The market does not react, it takes action". Once you understand the meaning of this sentence, then you will realize how important psychology in forex trading is and why we must work on it.
About five years ago I read a book called "Trading in the Zone" that really influenced me. The author explains how you have to approach the trading market psychologically, just as much as technically. This is so true!
I'm sure most people can relate to this, when you are winning on a trade, nothing seems to go wrong. But as soon as you hit a losing streak, it seems like everything goes wrong and you about to lose your shirt!
This is why I'm writing this blog post today, because I want everyone to win. No more drama for me! The first stage of trading psychology isn't really psychological at all - it's a fact that a lot of people don't know.
When you get into trading, whether it be day trading forex or trading stocks, the thing that you need to do first is STAY IN THE GAME!
This seems obvious, but I can tell you from my own personal experience (and thousands of other traders) - if you don't make it past the first hurdle, you're going to lose for sure!
The common excuses that everyone makes when they get out of the game are "I can't take the stress" or "not consistent enough." I call BS. If you want to be a trader then commit yourself to staying in the game and doing your best every day. All of the time it's will not go in your favor, so what do you guess?There is no person or machine available that can do it perfectly each day.
Staying in the game isn't easy - I know firsthand because I've been there 10 years ago when I was starting out. You have to want it; you have to commit to doing your best and staying in control.
I can't really teach you how to do this, because it's something that you have to want yourself. And if you don't, then there is no point in even reading my blog post today!
Okay, end of the serious stuff! :-) I hope that helped. Stay tuned for more posts about trading psychology...I personally think it's an important topic!