MoneyTec 2.0 - Online Forex Traders & Brokers Social Networking Community » Trading Methodologies » Trading Psychology

[iorek]

I've made many trades using various advice that wasn't always sound, and made many mistakes in and out of practice accounts before transitioning to a real one. "Learn to like losses" goes the old saying--better yet, there is a oneness between the losses and I: an inevitable intertwine to carry me to success. Therefore, I declare my love for the markets--wins and losses--I love them and the traders therein.

[pinalli]

I believe “If you fail to plan, you plan to fail”. A trading plan is especially crucial in forex trading to stay ‘in-control’ against the emotional stress in speculative situation. Often, your emotions will blind and lead you to the negative sides: greed causes you to over-ride on a win while fear causes you to cut short in your profits. Hence, a well organized operation has to be predetermined and strictly followed.

[iorek]

The financial pressures of trading often lead to my biggest losses--outside circumstances come in to the decision making process in the market which blinds objectivity and stunts patience.

[pinalli]

There are good day and bad days, there are good weeks and bad weeks, there are good months and bad months. Don’t let a bad day, week, or month put you down. Learn not to measure results in the very short term. Many traders give up after having three or four bad days. Don’t! Know that its part of the business. Hang in there, manage your money well, be persistent and I promise you it will pay off!

[honeyeater]

The most important thing to do is remove the 'bad' vocab from your persona.
There is no such thing as 'bad' or a 'mistake', when there is a learning to be had from it.
Welcome the 'bad' emotion and ask.."What is there for me to learn from this experience?"
When you have the answer, you are then in a position to be a consistently profitable trader.
Read "Market Wizards"!
Most agree it takes 5+ years to get the answer.
Work on any conflicting beliefs that lead to mental knots that lead to knotted action.
Give it five years of your time to sort.
While you work on the mental/emotional side, find the style that fits with you... scalp...swing..whatever lands pips in the bank.

"A person who doesn't risk, makes two big mistakes in their life. A person who does risk, makes two big mistakes in their life."

Read Mark Douglas 10 times to find exercises to do in the mental gym.

"It is not about ability, but opportunity." Napoleon Bonaparte

[Horden]

I think you CAN close a trade with loss ... if for example certain news came out and your expectations are totally changed by them, you shouldn't hold on the a position that can no longer meet that expectation!

[pinalli]

Originally Posted by honeyeater

The most important thing to do is remove the 'bad' vocab from your persona.
There is no such thing as 'bad' or a 'mistake', when there is a learning to be had from it.
Welcome the 'bad' emotion and ask.."What is there for me to learn from this experience?"
When you have the answer, you are then in a position to be a consistently profitable trader.
Read "Market Wizards"!
Most agree it takes 5+ years to get the answer.
Work on any conflicting beliefs that lead to mental knots that lead to knotted action.
Give it five years of your time to sort.
While you work on the mental/emotional side, find the style that fits with you... scalp...swing..whatever lands pips in the bank.

"A person who doesn't risk, makes two big mistakes in their life. A person who does risk, makes two big mistakes in their life."

Read Mark Douglas 10 times to find exercises to do in the mental gym.

"It is not about ability, but opportunity." Napoleon Bonaparte

Your post is pretty impressive. I believe you are almost right but giving 5+years are too much. If you want to learn you can do it in a year and if you dont accept your mistakes then ever 5 years are not enough.

Happy trading!!