Greetings to all trading colleagues and readers of my blog! Today we will again touch upon the psychological aspects of the trading process. What does a trader think about when opening a deal? Is it really important what the trader thinks about before pressing the button to open an order? This is a really important point. The moment of thinking about the deal itself is important. Due to the fact that our thoughts are chaotic, we have time to change our minds in a split second. We have the main priority for further actions, for example, start the engine in the car and leave the garage. The moment our fingers turn the starter key, we have time to think about the fact that we need to refuel the car. We immediately remember that it is necessary to replace the oil and filter. Leaving the garage, we notice that the mirrors are dusty and the car needs to be washed. At the same time, trying to remember the name of the glass cleaner. Something similar is observed in trading.
Is trading a hobby, hobby or job?
On many Internet resources, you can find similar questions. How do you feel about Forex trading? Your answer can explain many of the problems you face in the trading process. A speculator who has been trading for quite a long time, but does not have a stable result, says that trading is like a hobby for him. That is, he does not have a serious approach to market analysis and the trading process. He likes the very process of trading, but there is no strict discipline and clearly set goals. In another case, a trader, who also does not have a stable result, says that he treats trading like a job. It is one thing to speak, and another thing to do as well as to speak.
Money is urgently needed!
There are times when a speculator urgently needs money. And so he thinks – how to earn the required amount. Especially if the deadlines are tight. The solution is found quickly enough. If I need money, I’ll earn it on the market! And from that moment on, all the thoughts of the merchant are occupied with one priority task – to make money at any cost. He, as usual, analyzes the market situation, determines the prospects of assets for entering the market. But at the same time, he already considers not yet received profit. Thoughts are occupied only with making profit. The lot size is calculated, how you can open a deal to earn the required amount. At such moments, money management rules are omitted. If the risk per trade is higher than the allowed one, the trade is still opened, since there is an urgent need for money.
If I enter the market, what should I do next?
This is approximately what every trader should think before entering the market. Do not count the profit not yet received, do not strive, at any cost to earn the required amount. And do not even try, by all means, to prevent a loss. The merchant must think over a clear algorithm of actions in any situation. What should you do if a scheduled scenario is canceled? How do you know if a script can be considered canceled? Close a deal manually or wait for SL activation? Reverse a position or just exit the market with a loss? If the trader knows clear answers to these and related questions, then effective work can be expected. This is the priority line of thought that should be before opening a deal. And we do not consider the thought that it is hot outside, that we are very thirsty, that the cat is yelling under the windows, etc. This does not apply to work on the market.
Jul 16, 2021