I’m going to help you with growing as a forex trader. This is a great market to really make some nice profits, but you need to develop a specific attitude and killer instinct that makes you a better trader. I hope to help you make it to that point with this post.
- Don’t trade too short term: I think it’s pretty common knowledge by financial experts that the faster you make your profits, the better. This usually means you trade and exit in a very short period of time. The theory sounds good, but the fact of the matter is that you’re limited to a specific range of profits. Not to mention, that the risk to reward ratio isn’t that good. You don’t have to be constantly worrying about getting in and out. You should concentrate getting in and getting out only when it is profitable for you to do so.
- The emotional beast within: You are an emotional creature, just like the rest of us. I think a great example of a good and bad forex trader can be illustrated with poker players. If you take a look at the bad one, they’re not confident. They hesitate and act indecisive. They end up putting money on the table and get scared off lose it. They usually have big losses and their wins are smaller. The great poker player is one that is cool, calm and confident. He is in a constant state of analysis. He’s not making moves on gut feels. He’s playing the odds on the board and he’s playing the probability of his opponents behavior. To sum up the difference, the bad player is just emotional. He’s going with his gut all the time. He’s unsure of himself and pretty much messes up everything. The good player is a logical player. He’s playing the odds all the time. If he’s not going to make any money at a hand, he leaves it. His wins are bigger and his losses are smaller.
- Routine: It takes a lot of mental energy to think up plans each day for you to apply. It requires imagination to think of them, analysis to compute them and imagination again to predict the outcome. That uses energy, when you could be using that energy for something more productive. Routine is the key to developing profitable strategies without having to think. All you do is apply the same tasks everyday until you do them automatically.
By: Tyler Ziggler
I’m currently giving a 7 day free forex training course. Newbies and experienced are all welcome. If you’re interested in participating, check out the Casual Forex Trader.
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