Question: How not to sabotage your own trading operations
Question: How not to sabotage your own trading operations
Answer
You are in a trade, you have managed your parameters before entry, and everything seems to be going well when all of a sudden the price starts to drop rapidly. Tension can build up and you are now faced with two options to resolve this situation: you can either get involved and change the settings, or stay put and refrain from making any changes. Although the fear is usually very real, there is only one correct answer to this challenge: do nothing.
Although this type of behavior may seem foolish from the outside, the implications of your actions at this crucial stage will inevitably determine the future of your trades. Naturally, this may be easier said than done, maintaining a sense of discipline will prove vitally important to the career of every forex trader. In this article, you can learn how not to sabotage your trades and understand why most traders cannot overcome this hurdle.
You may be taking a course with a trading company or consulting a professional trader in hopes of becoming better at forex, but at the end of the day, no one can constantly be there to hold your hand. We all seek to accumulate as much information as possible and learn how to acquire more pips; however, to be an excellent trader, you must also be independent. Any form of addiction is a prerequisite for failure, which is why the compulsion to make a move at certain critical stages of a trade in an attempt to control it can also have disastrous consequences for your overall trading. .
The first step
In order to improve yourself and overcome the problem of the lack of internal support, you must first create a solid and functional system, which will relieve you of some of your responsibilities and prevent you from having to get involved. Unfortunately, many people think that the only effort they need to make is to create a trading system that will direct the entry and exit points in each trade, but they easily forget that the idea behind creating one system is that you don't have to worry about these steps yourself. That's why, once they finally get an effective system in place, many traders fail to practice consistency.
If you have ever invested time in setting up your own trading system and put in the effort to test it properly, you should now know that it works well. Any deviation from what you have built is then only counterproductive and will lead to inconsistency and therefore disappointment due to failure. This is, in fact, a key moment where you have to separate emotions from logic, because your decision-making should not, in any case, depend on your feelings.
The impact of emotions
Emotions can always fluctuate and they are colored by our own biases, our skewed perspective, whereas a system is a structure that aims to navigate through this 4-5 trillion a day market. The system is there to support you and help you avoid letting your emotions get the better of you and your trades. Also, if you allow yourself to remember and go back in time mentally, you will probably be able to remember the unfortunate part your emotions played in some important decision-making processes. You can think of all the anger that caused people you know to say things they regretted later in life or the choices they made to stay in bad relationships too long; for example, both have to do with a mutual culprit: emotions. Whenever traders allow emotions to dominate their critical thinking, they actually make themselves vulnerable to misjudgment, subjecting their trading to the impact of the fleeting nature of their feelings.
The only way for a trader to feel truly in control of trading in this market is to make a clear distinction between their emotions and their logical thinking. If we allow ourselves to enter and exit trades solely based on our feelings, then we make vital money-related decisions based on our subjective idea of how the market is moving. This feeling-governed action is not based on any real plan or structure, which is why an emotion management systemis essential to circumvent the dangers of our human nature. If you have developed and tested one, you have a tool that can certainly work and get you where you want to go, unlike that approach based on emotions and recklessness which, undeniably, will sooner or later bring all your fears.
Doctors cannot perform operations based on what they first think is going to happen with the patient or refuse to do a proper examination out of anger because that patient offended them during the encounter. You will always find that these health care workers examine the blood results and use special medical instruments to assess the situation, leaving aside their personal opinions. Whatever work of great responsibility you can think of requires this approach to decision-making, and no doctor, army general or president will ever allow himself to put the future of people or countries in their hands. of a fleeting sensation.
The solution to success
The proposition for action seems simple enough - choose the one vehicle that will lead you to financial prosperity and leave the emotions out of the equation. Trader psychology is the essence of the trading you will one day do and it is also responsible for the success that professional traders achieve . Although systems, algorithms, favorite tools or graphics may differ, all experts share the same feeling of what a "hard" decision is. No one can deny that a downward price spiral creates negative sentiment, but we all agree that the only way traders can get to the exit with a smile is to ignore that button. '
The battle is simply ever-present and we must constantly remind ourselves of what our purpose is, ensuring the conditions that help us perform at our best. Therefore, to approach this sensitive subject carefully and systematically, traders should think about the following steps: first, they should develop their own system thoroughly, which further implies that they should always know when to enter or exit of the market ; second, all traders must learn to recognize the potentially beneficial trade and execute it; finally, they should let the market activities wrap naturally without any interference, as this is a manifestation of mistrust to the
The last step is critically important, especially if you're right, because your success in trading should be largely predicted by the effectiveness of the system you've worked hard to develop. Therefore, if your subjective impression of the current market situation leads to the predicted outcome and you end up being right, this will only give you the green light to continue your sensation trading activities. Such an approach is sure to prove detrimental to your future as a forex trader, largely because forex trading requires mathematical precision free from bias or preconceptions.