Don’t set a fixed money goal in Trading
Do you trade all the time? Here's why that's a bad idea.
Many new traders try to trade all the time, even when they don’t have a confirmed trade setup. What’s worse, many of them trade in multiple forex markets at once without understanding why they’re doing it or how they’re going to follow through with the trades they initiate. Let’s take a look at why this approach doesn’t work and what you can do instead.
Set Realistic Money Goals
Trading is a numbers game – and, for most traders, money goals can be one of those numbers. Don’t fixate on hitting your money goal every month – or even every year – because it sets you up for failure right from the start. Instead focus only on Trading at the confirmed trade setups. Trade with full confidence instead of doubts and fear.
Work On Your Confidence Levels
In order to be successful in any aspect of life, including trading, it’s important to have a high level of emotional intelligence. Emotional intelligence has three main components: self-awareness, managing emotions and relationships, and motivation and impulse control. The ability to manage your emotions is important because traders need to be able to accept their losses without letting them affect their strategy or future trades.
Work On Emotional Intelligence
Trading is more than just knowing how to read charts and technical analysis indicators. It’s about understanding yourself, your emotions, and your psychological tendencies in relation to money. Being aware of these traits will allow you to be better prepared when certain emotions arise so that they don’t affect your trading decisions negatively. If you can learn to manage them effectively, it will ultimately help you become a successful trader in the long run.
Use Trading Psychology Software
Trading psychology, while incredibly important to your success in Forex trading, is not something most traders think about on a daily basis. However, it is vital to your progress as both short-term and long-term trader because it affects how confident you are in taking trades and executing trades on Forex charts.