3 Things To Stop Doing When You're In A Forex Rut!
Have you ever been in a situation where it feels like everything around you is crumbling, and you have no control over how many things around you crumble, what crushes, or when these things crumble?
I’ll tell you, I have! Plenty of times, and in different ways too. Sometimes the situation may be physical, and you crumble emotionally, or it may be an emotional struggle that causes you to crumble financially, the one that hurts. Yet, you feel like you can’t stop it.
I’m going to tell you that you can stop it, and you can stop it simply by stepping away. That sounds pretty ridiculous, to say the lease, right? Why on earth would I step away if things were crumbling financially due to my emotional struggles?
Wouldn’t I look for the means to stop the fall of my finances? Yes, you would look for the options. The means to this end is to do absolutely nothing at all!! Step back and don’t do a single thing regarding your financial crumble.
Cause and effect
I am speaking to my Forex traders who face many issues in life, and those issues may reflect on the charts in the way they perceive the charts on a particular day. I mean, I can remember days when I looked at the graphs and didn’t understand a single thing; it all felt utterly foreign to me, simply because my mind was clouded and I was in a rut due to the financial struggles I had in front of me.
Those were the most challenging days for me psychologically! The idea that there was somewhat a “safety net” to protect me if anything went wrong gave me this false confidence that I could trade the markets, and yes, with all risk management and money management procedures followed to the tee.
I say this confidence was false because as soon as the “safety net” disappeared, it opened my eyes to the fact that I had nothing else to count on. It was either do or die, kill the markets or perish, no other way out.
What is the way forward?
From my experience, I can say it is always best to step away when you find yourself in these types of situations. Leading me to the first thing you should stop doing when you’re in a rut.
1. Stop trading
It sounds counterintuitive because this should be your way out or the way you make money to get yourself out of whatever rut you’re in or at least pull your emotions to a more positive side. However, this couldn’t be further from the truth.
Your feelings are unpredictable when trading the Forex markets. They could lead you to a hostile place psychologically to the point where you don’t see the charts clearly because all you focus on are the situations you face in your personal life.
2. Stop thinking Forex is your way out
Again, counterintuitive because most people WANT to think it is or rather NEED to think Forex trading is their way out. So that they feel better about the other situations they face, i.e., maybe their house being repossessed, losing their jobs, tons of debt, but to be honest, the more you think this way, the deeper you’re digging yourself into the rut. You are almost forcing yourself to make it one way or another.
The push can be positive or negative; please understand; I do not mean it isn’t good. However, it can push you to a place you have never been psychological, which can ruin your trading.
3. Stop looking for other traders to take you out
Too many times, we will see Forex traders ask for signals or confirmation on their trade ideas when they’re in ruts because they want to maintain a particular record. Or don’t want to experience FOMO in the Forex markets when we as Forex traders aren’t missing out on anything at all. We need to adopt the mindset that believes that the next trade is just around the corner ALWAYS!
So that when things around us are crumbling, we can step away from the Forex markets and take time to sort out our lives and come back knowing we didn’t risk our soldiers in the Forex markets they didn’t have to fight in the first place.
You are allowed to stop trading the Forex markets for as long as you need to. It is always better to come back stronger and more focused than to stay with no clarity and imbalanced emotions.
Happy trading, my fellow Traders!