Most amateur investors will bail out of an investment program after three straight losses.
How you handle losing trades psychologically is a cornerstone to your ability to prosper in the makets. Losing properly (by losing small and continuing to make
your trades) makes winning possible.
You have to learn to accept your losses, because if you're not willing to take the chance that a trade could lose a pre-defined amount (by using a stop), you will be afraid to trade or will be scared out of a good position as soon as you get a small profit.
This defeats the goal to score big when you are right. A successful trader's mindset must accept losses as a necessary and beneficial part of the trading process when handled properly.
You must have the discipline to always cut your losses or keep them small. You must resist the temptation to say to yourself "It will come back". That type of thinking has ruined many traders.
This is the main thing that will allow you to stay in the game long enough to become successful. If you have discipline and patience, the end result will pay off for you. After all, this is the greatest game in the world, and it's the fastest way to wealth!
When I'm in the zone as a trader, I am totally focused and absorbed in the moment. Time seems to expand, my mind is clear, and I know what is coming next. My indicators speak clearly to me and I obey them automatically.
And being a part of this "now" moment is what makes me, as a trader, perform at the highest level. My ego is not dreaming of riches or fretting over bills to pay - it's just along for the ride. My trading is not tied to my self-worth as a person.
You will reach your trading goals by increments - once you accomplish one goal, you celebrate that success and then set another higher goal.
Peak experiences seem to occur often in what many individuals call "the zone". "The zone" is a state of transcendental well-being, an altered sense of time, or
being on a high, a state of focused energy, a euphoric state of optimal performance, exhilarating, uplifting, with a sense of mastery and control and invincibility.
Others describe the zone as radiant happiness, laser-sharp intuition, a total absorption in the present moment, with no self-consciousness or distractions. This state of mind has been called "intrinsically rewarding" because it epitomizes the love for the game itself, and not so much the outcome. All great traders have a basic love for the game itself because the emotional rewards are so great.
The zone is a rarely achieved psychological state, but once you have been there, you will want to return to the zone again.
One of the keys as a trader is that you must spend the time necessary to make trading skills "automatic" and create winning trading habits. Preparation and
practice make for proper skill development. By making these actions automatic, the mind can be totally absorbed within the zone.
What is the key to success? Dedication. The more you practice, the better you get. And you MUST believe in yourself and your ability to succeed. Keep your thoughts and behaviors positive, and you will increase your odds of a favorable outcome in your trading.
Trading is an art form that can be developed with time and plenty of practice.
Go slow, trade with caution, obey the indicators, and only trade when you're not tired or feeling stress.
Author Resource:-
Cynthia Macy is the co-author of 3 forex training ebooks.
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