Fear of missing out (FOMO) is present in all aspects of life including Forex trading. In trading, it refers to the fear of missing opportunities that could result in a large profit, this mindset leads to errors in execution and management meaning this weakness must be addressed.
In Forex Trading, the fear of losing can be like water. The right amount can give life but too much can level cities (and trading accounts).
There’s a pattern among great traders that you see when you start to research their beliefs and habits towards trading. Let me tell you for free, a lot of them… HATE losing, they can’t stand it. They do everything in their power to avoid taking a loss.
Forex, and trading in general, is different when compared to other professions in that you can teach somebody how to make consistent profits, but they can still lose money.
How is that possible? Most traders lack the discipline to execute consistently and with no subjectivity. As a result, they are left disappointed with a consistently declining equity curve.
Not all is lost, there are ways to fix this, which is why this post will give you the steps you need to become a disciplined trader.
Ever been so disappointed with an outcome even after you had planned what you were going to do, what you were going to say, and how you were going to do what you wanted but it still didn’t play out the way you imagined??
It’s like when a child asks his or her parents if he can go for a sleepover at a friend’s house and over and over, but they keep saying no. What does the child do next?
Most Forex traders only hear about the importance of journaling years after failure or even after a little bit of success, but you hear about it sometime in your journey in Forex trading.
Journaling is defined as writing or recording events that are happening, have happened or even the things you wish would happen. Usually, an internal thought process put down on paper or anywhere else you write.
Forex Trading, Poker, Black Jack. To be consistently successful at these, you need to have a basic understanding of Game Theory. What is Game Theory??
“Game Theory is the study of mathematical models of strategic interaction among rational decision-makers” – Wiki. Basically a calculated approach to a game of 2 or more people where there are rewards and risks at play. In Forex trading, we can almost bet on newbie traders being irrational.
For ages we’ve probably heard the successful traders say, it is important that you define your edge in the Forex market when it comes to trading. So that there is something that separates you from the other traders in the world. Now can you imagine the number of edges that are out there in the world if we all need to be separated to reach greatness?
If you are reading this article either you are simply looking to prepare yourself for your next winning streak or you are currently in a winning streak and want to make sure that you manage your trading correctly. Either way, well done for reading this article so you know how to approach winning streaks in Forex.
To consistently make money in Forex your winning periods have to outweigh the losing periods.
Nobody enjoys a losing streak, markets seem to give a never-ending stream of loses during these times, but if a trader follows the correct guidelines then it will come to an end.
When trading Forex you need to be able to manage losing streaks as well as winning streaks correctly, so that in the long run you can achieve your profit objectives. Each comes with its own challenges but this post will focus on how to manage, and eventually end, losing streaks in trading.
Trading Personalities. Scalper, Day Trader, Swing Trader, and Position Trader/Straight-up investor. These are categories that most people can generally fit into. If not, they probably aren’t trading. Trading, like any extreme sport, gives you room to finesse and express your character in your art.