With only 5% of all traders being profitable, it goes to say that becoming a good trader is no easy task. Throughout my trading career, I’ve learned many valuable lessons that have helped me tremendously in the way I think and trade. In this short article, I’ll share with you 2 important tips that I’ve personally applied to my own trading methodologies, and I hope you’ll be able to benefit from them as much as I have.
Tip #1: Pay Attention To Your Thoughts & Feelings
The focus of most traders is to make a profit, right? After all, that’s what we’re all here for… we trade to make money. But unfortunately, this obsession with making money often causes traders to ignore its effects on our minds and emotions. Entering into a losing trade may cause financial loss that can be recovered in the next trade or two. However, the psychological cost of fear and insecurity may take much more than a couple of trades to get over!
Our feelings and thoughts play a big part in how we trade, and if left unchecked, have the potential to lead us down the path of un-objective and unprofitable trading. Being aware of how you feel will help you identify the emotional patterns that you can improve upon.
Tip #2: Listen To The Market
This tip is easy to understand, but you won’t believe the number of traders that don’t follow it. In bear markets, sell the markets that show the most weakness. In bull markets, buy the markets that show the most strength. It’s not rocket science. And yet there are many traders today that try to outsmart the market. Always listen to the market, and never go against the trend, no matter what!
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"Forex Trading Traps!"
Harold Hsu is the owner of http://ForexSystemProfits.com where he provides premium Forex trading information and resources.
