From Trader to Trader. A Piece of Advice
Our job, as traders, is complex and difficult. We are exposed to daily challenges since we cannot control the market in either direction, or better yet, the direction we want it to take.
When trading, there are many feelings and emotions involved each and every moment, so what is it that motivates us and attracts us to this stressful pace of life? In my opinion, it is the passion and love for trading, which is necessary, but unfortunately, not sufficient for success.
We should pay greater attention to the emotional aspect we face when trading daily. If you enjoy to trade, you are having a positive emotional experience (what psychiatrists refer to as psychological well-being of the trader).
A person experiencing this feeling of well being is able to maintain at all times a positive mood that generates happiness, and an overall positive perception that gives you optimism and great physical energy. Unfortunately, most of us do not feel this way all the time. In fact, several of these factors may come and go depending on the circumstances that surround us, the personality traits of each person, the environment in which we live, and especially the degree to which we satisfy or frustrate our own needs.
This is where our emotional tone comes to life. After experiencing several days of losses in our portfolio, thus begins a spiral of emotions, including unhappiness, frustration and lack of energy, which can stagger our learning curve and development as traders. We may easily think that our efforts are not proving successful, when that is not exactly the case. Given these factors, the dominant emotional experiences must be pride, satisfaction and sense of achievement. This does not mean that you have to be happy each day of work (obviously, this is not realistic), but it is important to find the right balance between positive emotional experiences and negative attitude.
Another aspect is having a good physical energy. The mental state of happiness, enthusiasm, motivation, and overall satisfaction are difficult to maintain when you are physically and emotionally exhausted. Fatigue is the number one enemy of concentration and attention, forcing us to use our mental reserves to keep focus and worse, we are much more likely to commit the same past mistakes, when in this mental state.
It requires constant attention to remain goal-oriented; we need a fully alert and active mind. This is very important because the active trader is present in the continuity of the market. He can easily identify the trading areas and execute trades with confidence and minimizing the mental risk, by overcoming feelings of doubt, and trusting his system in each trade. All this work takes time, energy and constant attention.
When our body is exhausted, we lose the ability of concentration. At this point, even the simplest levels of reasoning can harm our results.
Exercise is one of the most overlooked aspects of the trader. Hours and hours sitting in front of a screen does not help our health, much less promote your aerobic capacity. This is something that would not hurt to start taking into account.
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When trading, there are many feelings and emotions involved each and every moment, so what is it that motivates us and attracts us to this stressful pace of life? In my opinion, it is the passion and love for trading, which is necessary, but unfortunately, not sufficient for success.
I think its not passion and love for trading. I call it greediness. Coz who would jump into so risky market and loose its money and time. Maybe for a very very veryyyyy few people its passion otherwise its greed.
I agree with the crust of your article that we shouldnt be demotivated by loss an we should do trading with full concentration.
Stick to your rules
Its a good article overall. I agree with it. But your point is also valid uniquetrader. It is already discussed somewhere in forum about this greediness thing. Passion is something else. There cannot be any involvement of "passion" in trading unless u r a winner in forex.
Originally posted by illiterateIts a good article overall. I agree with it. But your point is also valid uniquetrader. It is already discussed somewhere in forum about this greediness thing. Passion is something else. There cannot be any involvement of "passion" in trading unless u r a winner in forex.
Iam agree with you both guys. greed is like a sucide jacket for newbies and for those who wana double there money in just one trade
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Thanks a lot for the thread and I would say passion is different than greed and traders who have passion for trading make it as a primary source of income and become professional traders .
Forex is a market that attracts many investors, but they do not always control their emotions. Yet it must be able to control his fear, anger or euphoria to be focused and make good decisions.
Well the best way to prevent the horrific losses and drawdowns is to have set rules of when to stop trading or to reduce risk. Stop losses help a lot, as do rules such as stop trading for the week if you suffer 5 losses. Once you have been through a series of losses and its made you miserable, you should be able to identify a point where you change from a rational trader to a despariing gambler. If you start to hate everyone after losing 5 trades, then 4 losses in a row is your limit. Quit after that, so you retain your mental capacity for the next week. Unfortunately this is difficult to assess for people who have never suffered, but its essential.
Originally posted by CFXsignalsWell the best way to prevent the horrific losses and drawdowns is to have set rules of when to stop trading or to reduce risk. Stop losses help a lot, as do rules such as stop trading for the week if you suffer 5 losses. Once you have been through a series of losses and its made you miserable, you should be able to identify a point where you change from a rational trader to a despariing gambler. If you start to hate everyone after losing 5 trades, then 4 losses in a row is your limit. Quit after that, so you retain your mental capacity for the next week. Unfortunately this is difficult to assess for people who have never suffered, but its essential.
Many traders adopt this strategy. But I think reducing trade size will help more. You should trade with lower lots when u r loosing continuously. It will make u feel relax when u know that u will loose very small amount even if u loose this trade. So now u can find where u went wrong and market moved in opposite direction. If u stop trading, it might feel more frustrating that u cannot trade for the rest of week.
The good or ill of a man lies within his own will. – Epictetus
Some good advice on this thread
My advice is to be more attentive on the market and see the news whenever it comes and just try to avoid greed and just try to make good amount of profit with discipline and good trading.
Hmmm... If it was greed then there would already have been a 100% winning strategy that would have been used and abused many times over. The big players such as the banks and institutions should have already known about it by now since they have the sole power to issue money.
Honestly all of this is a game. If politics is a game of power, then trading(any form of trade, even working a day job is a trade) is a game of life.
Every loss encountered is experience gained. This is especially true for newbs as well as pros.
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