Following practical Forex trading strategies, requires the discipline to follow precise rules when executing and exiting trades. Not having these rules in place is a certain way to fail over in the long-run. More often than not, beginner traders abandon trading plans that don’t produce immediately observable and bankable results. However, this does not mean that their approach is wrong, but just that it may be misapplied at the current time. Repeatedly following unreliable methods and allowing emotion to come into play are the most common reasons for failure.
Recognizing what is wrong with their Forex trading strategies, is easier said than done. Even if they know that something does not work, they will tend to hang onto it in order to make themselves feel better about their choices. The market couldn’t care less about your ego or your precious system and it is up to you, the trader, to realize this and work within the market and not try to bend the market to your thoughts and ideas.
Writing in your daily trading journal allows you to see this type of destructive pattern quickly if you take the time to review each trade. Becoming a successful trader means that you are able to look at all the elements, including your Forex trading strategies and your ego, in order to be successful. It also allows you to see the gaps in your strategy regardless of whether they have to do with technical details or psychological situations.
Trading currency can become addictive. You can become so involved with the action and thrill of chasing trades that you neglect other things in your life to the point that it becomes detrimental to your physical and mental health as well as your trade performance. Single minded focus when trading is important but everyone needs a break from the stress in order to be able to make clear decisions in stressful times. Taking a loss, walking away and knowing that it is part of the game is a skill that you must develop early or your trading career and account balance will leave very quickly.
In conclusion, no one individual controls the markets or is able to exert their will over currency traders around the world. No one can control the way you think either. However, you must learn to control the risks associated with trading and enjoy what you are doing. Accept the limitations of your Forex trading strategies and use them to profit. Denying that your system will fail and hanging on to losing trades or becoming greedy with winning trades, are sure signs that you need to step back a gain some perspective. The most important part of trading profitably has to do with your mental attitude. Trading when not on top of your game mentally is a sure sign of impending doom and can lead to you leaving the market just before becoming successful. Write out your rules, follow them, maintain a trading journal, study it, test your system and grow your confidence. This is how you succeed with all Forex trading strategies.