The forex trader's attitude is an important element that must not be neglected. In order for a trader to elaborate a trading style that matches his mindset, he must identify his key personality traits (both strengths and weaknesses)
The trader within you is the result of many things: your beliefs, your personality, your attitude or mindset, your character and your health. You cannot buy these things at the trading store Instead, you must identify and know yourself, and then make whatever adjustments are necessary.
1. Document everything – this includes plans on how you are going to enter and exit a trade. For instance, use the rules you have been taught in your Forex trading training and only enter and exit trades that fit within those rules. Before entering, go through your checklist and tick off the rules one by one. If one rule is not apparent, do not trade.
2. Find a comfort spot – once you are frequently placing good and winning trades you automatically get a feeling of comfort. Next time you find an entry point the same feeling will come back and you can sleep comfortably knowing you have followed your rules. Even if the trade is not successful, you have not made a mistake.
3. Find a king strategy – there is no point going over 10 different strategies in your Forex trading training. Find one that suits your personality and only use that for a while or until you are making good returns from it. If you try and play 5 trades at the same time, your knowledge will sink as it is a lot more spread out.
4. Accept what trading is – it is a risky game that could hurt you badly. It is also one of the most rewarding jobs in the world if it is done right. All you have to do is decide how much you want to use it to your advantage.
5. Control your emotion – when you are making consistent losses you could suffer inside unless you focus on your control. Negative emotions can cause mistakes, panic and despair. If it starts to effect you in this manner, turn everything off and start again the next day when you are refreshed.
6. Focus on exit – once you are in a trade a whole range of news events can occur. Keep an eye on your trades and if you see signs of genuine reversal, get out and take your profit.
7. Control risk – you should be taught in your Forex trading training to only risk a percentage of your capital per day. There is nothing more to say about this except – do it.
8. Keep yourself informed – subscribe to news wires and get a feel of the market on a daily basis. See and hear what is happening to get a feel of the human behaviour around the world.
9. Monitor yourself – keep a trading log of all your trades. This is the only way to improve and not forget anything important.
10. Take responsibility – you cannot blame your mistakes on anyone, not even the market. The market is always right and it doesn’t care about you. If you make a mistake, accept it, learn from it and move on