A FX trader needs to be
a money manager. Properly managing your funds is very important in FX trading because if you cannot manage
your funds, you are just going to give back every small profit you acquire back
to the market. If you want to become a better trader and grow your account, you
must know the right time to trade and when to place it. By saying this, it also
means that you should also remain on the sideline if the time is still not
right.
Patience and vigilance
go hand in hand in trading for you to grow as a trader. Here are some important
ideas to take into consideration.
One Trade Idea is Never Enough
How many times did you
get stuck with only one trade idea? You traded EURUSD and thought that
everything is in your favor. But the next morning, you woke up with an alert
stating that your stop loss has been triggered. This can be the most devastating
wake-up call. Last night, everything was perfect but you woke up and everything
became utterly chaotic.
The next day, you
decided to do the opposite strategy. But it seems though, the market is playing
with you, opposite results from yesterday came in. Then you found your account
losing 20% of the previous amount.
The lesson that you
need to learn in this scenario is very simple. After a loss trade, take a break
and stay on the sideline for the next 24 hours. DO NOT do revenge trading. By
staying away from the market for the next 24 hours, you are keeping your ego
from interfering with your trades. Collect your thoughts and focus on your
trading plans.
Consider The Long-Term
Trading is a continuous
process and not a mere project. Trading has no end. Because of this, you need
to continue learning. You need to understand why you had a losing trade and why
others effortlessly earn their profits in every trade that they venture.
Rushing things will only make things worse. The learning curve in trading can become
a lot steeper if you slow things down and take it one step at a time.
That is why many people
get interested in trading. There is no one who can boss you around and no
deadlines to meet. You just have to focus on your trades and learn new things
every day.
Don’t Be Afraid of Losing
Losses are something you cannot avoid in FX trading. Also, when it comes to trading, your judgment is always compromised. No matter how long you have traded, your capital at risk will always influence your decision making. If you think that you are starting to feel the fear of losing on your trades, you may stay at the sideline and think things out. Since you don’t have open positions, your mind will become free from all sorts of distractions. You can then think properly and create a judgment with a sound mind. Do not let your emotions cloud your decision in trading.
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