I am not going to focus on the technical aspects of trading in this article. I think a lot of people already focus on its mechanism but not on its mental aspect. In my opinion and my experience, it is in the mental part of trading that most people need to work. Indeed, new traders do not use a proper trading strategy, but on the other hand, they do not know how they should think about this business either. Their wrong ideas will keep them in a state where they will lose money. We are going to correct this way of thinking, and thus it’s a way of trading.
So what do I mean by focusing on the mental aspect of trading? What I mean is that for many trading involves too many emotions. These emotions will cause traders to make bad decisions in Forex. The more bad decisions you make, the more money you will lose as a trader. My goal is to teach traders how to think about the game and how to think about each trade. By first changing your internal concept of what good trading is, then we can easily show you a winning trading system that will be profitable for you and that will keep the balance positive.
So what is good trading and what is bad trading?
Most people who are considering becoming traders do so because they want money NOW. They don’t want to wait to make money as long as other investors have to wait. They want daily, weekly and monthly income from trading. There is nothing wrong with that and I also share the same goals. What I differ from the average trader is that I know that patience cannot be dispensed within the trading business. Regardless if you do day trading or investments.
These traders not only want to have an immediate income but also want to be operating all the time. They love action. My job is to replace that passion for trading with a passion for making money. Enjoy profitability more than you enjoy starting operations. If they could only learn this, they would lose less money. I also have to teach them that each operation has to be planned. I don’t want them to make any decisions out of pure intuition. Big banks use automated trading systems run by supercomputers because they know how subjective human emotions are … and how much they betray emotions.
If there is one thing to learn from this article, it is to focus more on how you think about trading. Don’t let forex trading become a game or a source of entertainment. Think of each operation as an important business decision that needs to be well planned and researched in advance. And what if you are making intraday investments? Of course, in day trading you will have to make quick decisions, but your system will already determine certain things, such as position size, entry, and exit points before you sit down at the computer.
You can see in the following link a video where I explain to a student (it is the first session that I have with him) how to get profitability from trading with a methodology that “forces” you to have discipline from start to finish.