Forex Market – Mind Game

Before you start trading Forex the first thing you should do is to change your way of thinking. Mind of an average person should be substituted by profiteer`s mind. Currency trading is a mind game, so those who do not possess a certain kind of thinking and analyzing are definitely doomed to failure from the very beginning. Drill of trader conscience is the first step in education of every successful trader, however, many beginning traders neglect this important aspect and at the end find themselves out of game. Just remember, perfect enter and exit strategies combined with great analysis will not provide you the desired result until you start thinking like a trader.

The knowledge about the market you possess as well as your IQ will not guarantee any decent results. The key factor is the process of taking decisions. This is the reason of one`s defeat and other`s glory. Unfortunately, every decision taking process in trading is painful. People tend to eliminate pain and seek for remedy. In addition, sufficient knowledge about the market, a working trading system combined with profiteer`s mind will provide great success.

Having spent a lot of time on research a trader comes to a stage of taking decisions. How many traders would say they sleep well when the position is open? A few may sleep without a fear that high gains may once turn into undesired losses. Or it appears to be very hard to go to your rancho leaving your profit gain for several weeks and even months. Or another question: how many can admit making losses as a daily routine when the strategy suggests to do that? When I say the process is painful, pain means uncertainty about what will happen in future as I know how difficult is to follow the rebounds absorbing your profit. That is why I call Forex trading a mind game. An ideal trader is a well disciplined personality with thanking as a speculator. He should not feel pain out of trading. You do not need to be a born genius to succeed in financial markets.

Words of wisdom
Everyone who participated in Forex market should find his own system which meets his needs. For example, that if Jack`s system is perfect for him and he has been making god money for 10 years, it does not mean Peter will get benefit out of it. Successful trader is that one who gets the most when he is right and loses the least when he is wrong. That is why any system that fits you is good.
In currency trading a system is a serious weapon. Combined with speculator`s way of thinking every result may be attained. It is advised to create your own system as walking in other`s shoes is sometimes inconvenient. Here well-elaborated combination of your own thoughts and others opinion is the best choice.

Money management
The final important component of speculator`s way of thinking is money management. Here many traders make most mistakes. That is why drawing a conclusion we may say that money management and trading discipline are the most important factors to win in this game – a mind game.