Successful Trading in The Forex Market does not happen by accident, but there must be a great deal of discipline and commitment to a set of rules and principles that will lead ultimately to achieve satisfactory trading results. We often find that Forex trading professionals warn can trade without the use of elaborate pre-trading plan, or strategy has been designed according to the circumstances of each trader.
The following will mention the most important rules of successful trading in the Forex market and should be adhered to at all times:
Use plan or strategy for trading: trading without the use of a plan or strategy is a waste of time, and eventually lead to the expected results.
Commitment to the plan all the time and work to develop them: It’s not just choose one of The Super Profit Scalper Trading strategies only, but it is essential that there be a commitment on the trading strategy that has been selected and is being used every trader to develop its own trading strategy constantly according to changing market conditions on the one hand, the hand another according to its own circumstances and so will eventually reach a stage of harmony between him and his trading strategy, which helped him to achieve amazing trading results.
Limit orders from loss mode: the most important rules of successful trading in the Forex market position limit loss orders, which would limit the expected losses in the forex market and thus increase its own profit rates.
How to erase the fear of losing money when you start trading
If you want to become a successful investor in the Forex market, you know very well that you will lose money at some stages of the trading stage, but if you think you will avoid losing money in all transactions, you must forget all that now.
It can truly say that the loss of money in the forex market is part of the real investor wins. The winning and losing in the field of forex two things are inseparable. If you do not learn how to correctly loss will never be able to make money in Forex.
In fact, almost all professional investors are losing money, they understand very well that’s just part of the “game.” Unfortunately, a lot of investors, unaccompanied fear at every trading process and well-founded fear of massive loss of money and in some cases there is a very passionate emotion.
Some of the main reasons behind investors’ fear of losing their money are:
1. anhm do not understand it mathematically, through a series of transactions, the investor may lose the majority of transactions, but it is still a winner on a large scale, simple math to prove it.
2. They are simply afraid of losing money in general.
3. They do a very large trading transactions (the risks are more than they should be really). Which may cause fear, loss of sleep and to ensure the occurrence of massive emotional swings and emotions.
In the rest of the lesson I will give you an insight about the fear of losing money in the markets, and how to overcome it. This information is very strong stuff, so be sure to read the entire re-read them again if possible. What you learn in this article should give you enough strength to eliminate the fear of losing money in the market and will also help the development of your confidence and your emotions as an investor.
Fear of losing money may be a good thing, but we need to shift its focus.
Fear of losing money is a good emotion in many areas of life, and if we did not have this passion, there will be more chaos in world markets. General humans who protect their wealth and property acquired, and they were right to do so, they have worked hard to obtain.
However, in circulation, this natural energy on being a defensive and passionate with the money you need to be converted and re-focus in the case of a different mindset …
Instead of the fear of losing money when trading, and to make these emotions control you when each trade, the investor has full control over risk management at every trading through stop losses and control the volume of trading transactions process. Risk management tools are the way to control your own money, investment funds, rather than to feel the fear of losing money, you can feel the power and control, so that you can pre-determine how much and the amount of the loss can be tolerated before entering into the trading process using these tools. However, the use of these tools to control the risk at every trading process is not sufficient to remove the fear of losing your money altogether.
Ask yourself some serious questions:
If you feel scared or any emotion in general when you can trade, you need to give yourself a “slap” on the face and ask yourself three big questions and to answer them honestly:
1. Do I really have the knowledge and confidence enough to do I trade using my money real?
If you are trading in the market using private money that hard-earned, and do not know what are the trading limits you have, and do not have 100% confidence in your ability to analysis and trading in the markets … maybe it was not supposed to trade.
One of the biggest reasons behind the fact that investors are afraid of losing their money because they do not have confidence in their ability to trade! I know this may sound silly, but this is very true. Many investors simply do not have a trading strategy to do successful Trader, also do not have a plan for trading, and trading magazine, etc … and therefore they are not willing to risk their money in real markets after … and thus always get scared when trading.
2. Am I trading with volume of trades is too big for what I can afford the risk per trade?
If you do not know what is the amount that you can afford the risk at each trading. You need to define this first. This amount can be determined simply by specifying the number of dollars could afford to lose during the trading process, and remember well that the loss is very likely on any transaction. Therefore, you have to take into account the overall financial situation for you, and then you can determine how much money could be lost at each trading process … At this point, you should be honest with yourself too.
3. Do you really understand the math behind the trading?
When I say “behind the trading of mathematics,” I mainly refer to the risks of return, and how it relates to your own by winning in general. For example, a series of 20 trading deal, you are likely to lose at least 35-45% of the total deals, most successful investors are making the proportion of losses ranging from 40% to 50% most of the time, and in some cases may up to 60%. With the strength of the risks of return, you can lose more than you win, and at the same time he graduated from the trading process and achieving the success of the big profits.
Well understood that the loss when trading is quite a bit
During the trading loss is considered a good thing, in case what you have to quickly reduce these losses and do so through the preservation of your capital and then will pay the loser Winning trades behind deals.
Even very lucrative deals usually include a loss of more than a win, and to prove this point, let’s take a look at the case study of a number of trade deals worth 14 show deal win rate equal to only 43%. To illustrate, it means you lose 57% and win for only 43% of the total transactions. It may be difficult to link the loss of the majority of transactions the possibility of winning and ultimately profit.
Believe in your own trading strategy documented in mathematics
As we saw in the previous example, the math shows us that even with the loss achieved by 57% of the total trading transactions we have, and if we leave Winning trades to work and reduce the losses, the profits will protect itself eventually.
If you’ve followed the actual plan, and accepted the loss, because you at least have a plan or a road map followed and explain your decisions and actions, the mind will see it is a logical, and therefore you are less likely to be subjected to control feelings of fear. Thus, one of the most important concepts that always focus on is the need to train your mind to accept losses.
“Night Test sleepless”
Everything that we have said above is important and delicate, but there is still one thing is simple: “Fear test,” which I find effective for many investors. This test is used simply to measure how you feel at night before going to bed while there is a trade going on. If you find you can not stop thinking about your trading, or that you attach to your computer screen while you have to be asleep at this time, know that you are still faced with the fear of loss. Therefore here is very simple test you:
One rule is simple … if you can not afford to go to sleep at night with the comfort and tranquility of your own trading operations …
1. You either you trade using a very large volume of transactions / risk very much.
2. You do not have any idea about what you do and lacks confidence in your trades.