Forex Machine

How to Become a Better Trader Through Psychology

When it comes to as a trader you'll 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'll require to write down rules which you will follow in your trade plan.

The example below shows how to write the psychology rules

MINDSET/PSYCHOLOGY

Trade without Emotions (greediness, 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 trade positions looks promising and which does not.

That is the job of my system. My system has a set of rules which instruct me this is what I follow. Don't get caught up and engrossed in price action & make your own rules & strategies 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 and maximum focus I execute the trade as planned.

Opening trade transactions not given by the trading strategy, second guessing system & not taking trade transactions given, hesitating and getting in late, anticipating and 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 desire on mastering ability to execute my trading system accurately.

More you develop the ability to step back from price movement & 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 trading game.

By writing psychology rules like the ones above then as a trader you'll start to follow your system and 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're registering and 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'll be able to trade more like a trading machine and follow the rules of your system & your trading will become more profitable.

Changing your psychology will not be easy and that's why as a trader you must constantly make the effort to follow the rules of psychology that you write on your plan until the time you master these rule and you as a trader can now trade the market without emotions and trade like a trading machine.

To know more about psychology study the following psychology guide

FX Trade Psychology for Traders.

Study More Lessons and Tutorials & Topics:

Trade Forex Trading

How to Become a Better Trader Through Psychology