When it comes to trading one of the facts that are overlooked are those that deal with trading psychology. Many traders spend months, days and even years attempting to find the most appropriate system. Acquiring a good system is only a part of the game. Do not get it wrong, it is vital to have a system that will be suitable for the trader, and it is the same important to have a money management plan or realize all psychology barriers that may influence trading decisions and other things. If you want to achieve success in business, there should be balance between all important aspects of trading. In forex market only 5% of all traders manage to achieve success.
Mistakes in the trading environment
We tend to relate a trading mistake to the results of any particular trade. In fact a mistake is committed when a definite guideline is not followed. When the rules you trade by are broken.
How to deal with mistakes
There are many ways to manage mistakes. We will recommend the one effective.
Step one: Change belief
Every mistake is a learning experience. They all have something to offer. Try to get rid of the feeling of frustration and develop a positive attitude to mistakes.
Step two: Identify the mistakes committed.
Identify the mistakes, get to know what caused the mistake and try to see the nature of that mistake. Clarifying the mistake nature will prevent you form making further errors in the future. Sometimes you will find the answer where it is less expected. Take for example a trader that does not stick to the system. The reason could be that the trader is afraid to lose. Then why he is afraid? It can be that the trader uses a system that does not suit him and considers it difficult to follow every signal. In that case, you can see, the nature of the mistake is not the main one. You should stay as robust as you can to find the real reason of the particular mistake.
Step three: Analyse the consequences of the mistake
Try to see the consequences of you do a particular mistake, bad and good ones. Good consequences are those that make us successful traders after dealing with the error. Consider all possible reasons that you can learn from what happened. If you do not stick to the system, you will lose confidence in it and this will put you into trades that you do not want to be and out of trades that you should be in.
Step four: Take action.
Taking action is the last and the most vital step. In order to learn, you should change your behaviour. Make certain that you are becoming mistake proof. When taking action, every mistake is turned onto a small part of success in trading career. To continue with the same example, the final step is to redefine the system. The trader will adopt the system that is suitable him so that he has no problems when following it in the future.
Realizing the fact that the result of any trade has nothing to do with a mistake will give you more possibilities, where you will understand the nature of every error made.
Of course, nobody can achieve success overnight and you will undergo the sequence of mistakes before you can have wins at the forex market.
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It is obligatory to read unbiased reviews to answer a question “is forex a scam?” before you invest money into trading activity. This is important, don’t forget that we live in the world where information quickly enhances the quality of our life.
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