Investigate the markets thoroughly
This is where you explain how you’ll trade and what you’ll think about it. Deep research into markets and currencies is an excellent method to lay the groundwork for a trading strategy.
Do some study on successful traders as well
Many effective traders approach their work as if it were a company. The goal remains to produce money while also managing risk. Studying successful traders will greatly benefit your trading. You may learn a lot from someone who has ‘made it.‘
Intraday trading psychology
Delves into the minds of effective day traders. Once you understand the fundamentals, you will be better prepared to deal with the ups and downs of day-to-day trading. The greatest damaging influence on a trader’s mindset is fear of losing.
When trading in unpredictable markets, the phrase “rules are meant to be broken” simply does not apply. The key trading emotions that drive market movement are fear, greed, and hope. Fear of poverty is the primary source of fear; nobody wants to be impoverished.
The successful trader is cool, calculated, and logical. Fear and anxiety occur when we believe we are on the verge of disaster. The successful dealer takes advantage of other people’s anxiety. They trade with less fear because they take proactive actions to reduce risk.
Anger and disappointment are two important emotions that influence trading decisions. We become enraged when we believe fate or mysterious other forces have conspired to derail our plans. You will be less irritated or frustrated if you recognize that you have no control over market action.
(Afford Lose philosophy)
True trading success is built on the ‘afford to lose’ philosophy. This holds true for all trades, whether in the foreign exchange market (forex) or in regular stock markets. You’ll feel better knowing that if a horrible trade occurs, the world will not end.
