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Profitable Forex Trading Mindset
Written by: PaxForex analytics dept - Tuesday, 19 January 2016 0 comments
Trading the forex market is not just about mastering which technical indicators to use or when to enter or exit a trade — it's also about mastering your own psyche. Most experts agree that one of the most important aspects in achieving consistent trading success is developing a profitable trading mindset. This means that if you do not have the right mindset, you will not be successful in making profits no matter how good your strategies are.
The most important thing that the successful currency trader possess is the ability to separate emotions from trading. Confidence in your trading abilities is one important aspect to being emotionally detached from your trades, and the other aspect has to do with the way you fund your live trading account. Make sure that when you put money into your live forex account, it is extra money that you do not need to survive and could afford to lose.
Before you even start thinking about trading and risking your hard earned money, before we even start discussing strategy, if you feel you want to explore trading
as a means of growing your income and wealth portfolio, you need to enter the market with the right mindset. Mystical though it may seem, the trader's mindset arises from practical steps taken consistently over time. Cultivating the mindset starts with setting realistic expectations and consistently acting on them.
The first thing you need to understand is that trading is a discipline. It is a long-term game of probabilities, you will win some trades, you will lose on some trades, but as long as you a disciplined enough to stick to your trading strategy, to not be emotionally attached to your losses, or worse your wins, you will tend to make more winning trades than losing trades and net a profit.
You need to be very organized. Have a trading plan and journal to track your trades consistently. Think of forex trading as a business rather than placing a bet in a casino. Invest with your calculator and not your heart, stay calm in your dealings with the market. Again, keeping your forex trading mindset right is the outcome of always taking a conscious effort to practice, manage, and control your emotions when it comes to trading.