Today we will focus on the basic psychological rules that are very important during the first steps in Forex and will certainly help you not to lose control of the situation.
- Use for trading only those funds that are willing to lose without regret, all psychologically distracting you from trading factors should be reduced to “no.” Understanding that funds for minimum needs have already been set aside will give you the opportunity to maneuver capitals more freely during transactions. And in any case, do not conduct transactions for credit money! In this case, you can lose even faster, because the debt to the bank and the fear of non-repayment of the loan will psychologically hang over your mind.
- Control your emotions in any situation. Often, even experienced traders panic and lose as a result of rash actions. No matter what happens, remember that you use tactics that have already earned you income, and therefore, in unusual situations, do not give in to the urge to take a step, which you will regret later.
- Start small. Do not try in the pursuit of income to invest immediately all that you have. It is better to work with small amounts, even if successful transactions push your mind to increase the rate. Then, when you understand how the market works and where the trend is moving, then increase the amount of transactions.
- Share your emotions and desires to make a profit from trading. A successful trader makes deals with cold settling. On the one hand, the trader makes deals just for profit, but on the other hand, such a desire may be motivated by greed. And the pursuit of income on the principle of “more, more …” can lead to irreparable losses.
- Follow a clear action plan during trading hours. Sometimes the market may try to “bribe” you to change the tactics of actions, but if you get carried away, you may lose the thread of your strategy, and the chaotic behavior on Forex almost always ends in a loss.
- Let yourself rest. After a busy week, a trader should take a break for 1-2 days to take a fresh look at his previous actions and the need to change the strategy of behavior in the market. Professionals especially advise to rest after getting a good income, because success can be intoxicating, and profits in Forex often alternate with losses.
- Do not listen to other people’s advice. If you have already formed your opinion on the direction of the market, clearly follow your intended plan. You can look back and evaluate the correctness of the actions later during the break.
- Not sure – do not make a deal.
- Learn to lose and cut losses. Often, the hope that a profitable position that tends to “0” becomes profitable again will result in a loss of position.
- Use Stop-Loss orders with caution.
These are just some of the rules that can help you a little to keep trading in the foreign exchange market. With experience, every trader develops certain rules of behavior for himself, but remember: half of your success depends on your psychological state! Good luck with your trading!