There is very little that is new in the world of trading psychology but mastering the basics and mastering our mind is essential if we are to develop as highly efficient traders. The following are common discipline issues and suggestions to counteract them. Discipline is needed if you are to succeed as a Forex trader
1. Boredom and a need to trade for the “buzz”
Try to use dead time between trades for things like self improvement training i.e. read a book by your favorite personal development guru or learn to meditate/practice Yoga! Anything that keeps you in the right frame of mind for the job of trading. A positive mindset will have a positive impact on your bottom line over time.
2. Trading when tired.
One of the great things about trading is that we can close for business whenever we want. If you are not in the correct mindset for trading then shut the shop! There will be no customers banging on the door shouting for you to open up.
3. Not taking a loss well and revenge trading (more…)
Archives of “buzz” tag
rssGreatest shot ever
The latest buzz — Tiger is in rehab for compulsion.
He’ll get back to golfing, no doubt, but his marital life appears to be over.
Here’s why he’s the greatest golfer:
India -Deficit fears
Daniel Tenengauzer, co-head of global emerging markets fixed income strategy and economics at BofA Merrill Lynch Global Research, is not convinced by the buzz surrounding India. ‘Compared to the rest of Asia, India is not the best story.’
‘My problem with the Indian story is fiscal. The government spends a lot of money which has increased the country’s current account deficit. The fiscal deficit for this year is -10.6% – China’s is half of that.’
Which type of trader?
Which type of trader?
Please which one of the following belong to you?
there are many type of traders, an awareness of the varieties allows you to avoid the pitfalls.
THE DISCIPLINED TRADER.
This is the ideal type of trader, you take your profits and loses with ease, you focus on your system and follow it with discipline.Trading is usually a relax activity,you appreciate that a loss does not make you a looser.
THE DOUBTER.
you find it difficult to execute at signals, you doubt your won abilities.You need to develop confidence.Perhaps you should paper trade.
BLAMER
All losses are someones else ‘s fault, you blame bad fills, your broker for picking the phone up to slowly , our system for not being perfect, you need to regain your objectivity and self-responsibility.
VICTIM
You blame yourself, you feel the market is out to get you, you start becoming superstitious in your trading.
OPTIMIST.
You start thinking it’s only money , ill make it back later. you think all losses will bounce back to profits, or that you will start trading properly tomorrow.
GAMBLER.
You are in for the trill, Money is a side issue. Risk and reward analysis hardly figure in your trade, You want to be a player, want the buzz and excitement.
TIMID.
You enter a trade, but panic at the sight of a profit and take it far to soon, Fear rules your trading.