Forex Machine
How to Become a Better Trader Through Psychology
When it comes to trading as a trader you will need to execute your trades like a trading machine, without any emotions, or without being swayed by currency movement that the price has moved up so much that you now need to open a buy trade because the up move has really moved some pips.
So to trade like a trading machine as a trader you need to transform your psychology. To transform your psychology then you will require to write down rules which you will follow in your plan.
The example below shows how to write the psychology rules
- Trade without Emotions (greed, fear, anticipation, impulse, bias, over-excitement)
- I trade what my-eyes see not what I feel.
- I will be patient.
My job description is not to be the trading system!
It's not to decide which trades looks promising.
That is the job of my trading system. My system has a set of rules which tells me this is what I follow. Don't get caught up in price action and make rules as you go along.
MY JOB DESCRIPTION IS
To sit patiently and wait for my system to indicate that it is time to enter or it is time to exit. And then with extreme focus I execute trade as planned.
Taking trades not given by the strategy, second guessing system & not taking trades given, hesitating and getting in late, anticipating & getting in early are all common place and boil down to lack of faith in system and not having a burning desire on accurate execution.
GOAL: To have 100% undivided focus on mastering my ability to execute my trading system accurately.
More you develop the ability to step back from price movement and watch market detachedly, waiting for a signal to trade, the easier it will be to witness the fluctuations of your emotions without getting sucked into them allowing them to throw you off your game.
By writing psychology rules like the ones above then as a trader you will start to follow your system & trade more like a trading machine would if the system you are forex trading with was to be automated.
The more you as a trader follow these psychology rules the easier it will become to trade the market without being influenced by the various market movements.
Always make sure that you are opening a trade because the rules of your system have been met and a signal has been generated and not because you have seen the market jump and so now you decide it is time to buy.
By following a system then you will be able to trade more like a trading machine and follow the rules of your system and your trading will become more profitable.
Changing your psychology will not be easy and that is why as a trader you must constantly make an effort to follow the rules of psychology that you write on your plan until the time you master these rule and you can now trade the market without emotions and trade like a trading machine.
To know more about psychology study the following psychology guide
- Forex Psychology Guide
- Forex Psychology & Emotions Fear and Greed
- Forex Trade Psychology Tutorial Lines
- Learn Psychology
Forex Trade Psychology for Traders.
