The Best Forex Trading Method - Is Trading In Your Emotions
It’s been said by so many successful traders that to become a successful FX trader you have to become effectively emotionless. It’s not always an easy task, but if you allow your emotional mindset to influence your decisions, you could have the best trading method going but it is still going to end up failing you.
How to separate your emotional mindset from your logical mindset
Some traders are lucky enough to have a more logical mindset inbuilt into their brain, and it’s these traders who are generally more successful. But providing you can separate your emotional mindset from your logical mindset, you have the ability to turn a good trading method into the best trading method – because the best trading method after all is your ability to sever ties with your emotional mindset.
Here’s a useful point to dwell on, and by repeating it to yourself often you can help your brain to understand the need to only apply logic and method to your trades:
The market will do what it does. Nothing you can say or do will change that. Regardless of what you do, the market will do what it does.
As such, the most important thing you can do is not cross your fingers and hope for the most desired outcome, but rather plan for every eventuality.
Many foreign currency traders have fallen into the pit (whether consciously or subconsciously) of almost believing that they can change what the market does. They can’t. Not even the best trading method has an influence on what the foreign currency trading market will do. The only way to face this pit and get over it, is to have the best trading method possible which will plan for every eventuality:
You cannot control the outcome, but you can be ready for whatever happens.
Traders who cannot separate emotion
If you are the kind of foreign currency trader who has difficulty separating logic from emotion, then this piece of advice probably won’t rest kindly on your ears, but it is absolutely true:
You are better off working another trade.
The fact is, many traders know that the method they are using is wrong. They know what it is letting them down, they know the best trading method to use – but because the best trading method in their particular circumstance doesn’t feel quite right, they can’t bring themselves to implement it, and as such continue to trade in a manner which is driven by emotion and instinct.
Emotion and instinct will hold you as a slave, and until you can learn the best ways to break free of their spell, you will never find the best trading method and have very hard time to make a consistent and successful foreign currency trader.