The financial markets are undoubtedly sophisticated, and Practical Trading commands a multitude of knacks and, what’s more, excels at conducting things like ascertaining the industry fundamentals and forecasting the general trajectory of stock trends. The first and foremost thing we do when we get up at dawn is observe our “yet-to-conquer” watchlists and scan some news headlines while brewing our coffee.
Very seldom do we devote the effort to consider the patterns in which our regular physical routines may drastically affect our trading performance. We put more emphasis on formulating an effective plan to bolster our godsend precious health and vitality. For those who make a living trading the financial markets, like me, you know how vital it is to nourish the intellect to flourish and retain your sanity.
There has been a lot of emphasis placed on the fact that your physique is probably the most critical instrument you own when it comes to Trading. Remember that maintaining a positive trading record involves undivided attention and healthy mental and physical bonding to carry out your trading tactics without blunders.
I’ll admit that I’ve made some silly trading mistakes, such as selling what I meant to buy or inputting a wrong position out of sheer stupidity. However, we tend to ignore this, continuing on with our lives while yelling at the market about its ineffectiveness.
What Makes Us Stand Against Our Routines
Before everything else, I want you to stop putting blame upon yourself above everything; it’s not your fault. Trading is hardly seen as a physical performance-based endeavour. Seriously, you don’t have to show off your physical skills to squat like a kangaroo, sprint as fast as a cheetah, or make a vertical leap comparable to other professional athletes.
In other words, getting started is straightforward since the obstacles to the doorway are not very onerous. The physical prerequisites of Trading are commonly misunderstood as higher than those of other chores.
In fact, Trading is utterly devoid of physicality. Substantial finances await even for the most slobbering of fat, unmotivated slobs. One can enjoy a night with their heavy drinking, groggily get out of bed, staggering across to their gadgets, and slay their moments unsystematically.
The reality, however, is that slacking off is not the norm when it comes to attaining greatness in this endeavour; somewhat, it’s the mental performance that measures.
Traders’ ability to support themselves financially is analogous to that of a professional handling other obligations. I’ve toiled with some of the best professional traders worldwide. I can attest that this industry is not distinct from any other chores requiring fidelity to precision, norm, and training; otherwise, it will devour your efforts.
Additionally, in my opinion, market success relies on a host of variables, including but not limited to one’s way of life, psychological approach, technological knowledge, and other factors. You would look at them together in a perfect world and objectively evaluate your current trading position.
From a psychiatric point of view, I’ve got a list of some deadly mistakes that surely don’t need any justification if forex trading is your cup of tea.
Outmanoeuvring the market with limited funds.
Most people get their feet wet in the forex market, searching for a quick method to amass wealth. Instead of trying to outmanoeuvre the market, focus on learning its patterns so you can ride the wave when it finally forms. However, the market may shake you to your foundations if you attempt to profit on a shoestring budget.
It’s typical practice in the Forex market to promote trading big lot sizes and leverage ratios to maximise profit on a relatively modest capital outlay. Believing you can “CONQUER the market” is a common disappointment for traders since it encourages them to react emotionally to market fluctuations and trade recklessly or against established patterns.
Lack of Implementing Risk Management Costs You.
Like any other endeavour, Forex trading requires careful management of potential losses. Being knocked out by inadequate risk management may happen to even the most competent traders. Instead of focusing on making a profit, you should prioritise safeguarding your existing assets. Your company’s profitability will decline when your funding runs out.
Implementing stop-loss orders may mitigate this risk and demonstrate responsible risk management. Keep your lot sizes manageable concerning your trading account balance to make things look safer for a while. Importantly, staying out of a trade as soon as you realise it will never be profitable would be helpful to digest.
Admitting to Covetousness Is a One-Way Ticket to Lose.
I’ve caught numerous traders within the trading community attempting to profit from even the slightest price fluctuations. The soundest thing about the Forex market is that people make a living off it daily, which astounds me. Sometimes, holding positions too prolonged to snag the final few pips before a price action goes against you is a sure way to ruin an otherwise great deal.
It would seem that the approach is relatively straightforward but refrain from becoming needy. There is always room for everyone to make a decent profit. Since currency values fluctuate, there’s no use in trying to snag the exact last pip; a better chance will arise soon enough if you can’t afford that.
Failed Trading Due to Indecision (signs of terrible trade)
When a transaction you initiate doesn’t instantly yield a massive profit, you may experience trading regret and begin to second-guess your decision. Sure enough, you’re out of luck; there’s nothing you can do to change the outcome. I was in your shoes when I executed my deal and attempted to undo it; the market immediately continued moving in the other way; nothing changed.
It spoils you, and I can feel that! It’s best to stick to your guns, trade with the trend, and hold off on making significant moves until you see a definitive shift in the market. Everything that moving around will do causes you to gradually lose more and more of your investment cash as you keep losing ground.
Unwillingness To Acknowledge Mistakes Being Stubborn
Just like death is inevitable, specific trades in forex trading are doomed to fail for one reason or another. It is in everyone’s inclination to want to ensure that they are legitimate in their games, yet there are instances when it is apparent that they need to step back from their master. So long as you don’t doubt your own goodness, there’s no need to stress.
As a result, it’s essential to recognise what the market is trying to teach us, even if it goes against our first impressions. If you insist on always being explicit, you’ll eventually run out of funds and can never learn something new, starting from scratch. Admitting guilt when wrong isn’t easy, but it’s necessary occasionally.
My Verdict
You can never expect a smooth ride on your way to success. I’m aware that everything I’ve just articulated is realistic. Life isn’t as simple as we’d like to believe, but as we get more geriatric, we learn to dispel the illusions that formerly clouded our judgement and move on. Penalties in Trading are also obstacles that must be crushed; one must keep sight of the reward despite the ordeal of the journey.
The more ambitious and unflappable a trader is, the more likely he will flourish no matter the obstacles thrown his way. Trading platforms’ wild swings in value force us to confront the hidden materialistic anxiety, volatility, and uneasiness we try to conceal in professional situations. More than having a sound investment plan is needed; investment is also a measure of your morality. How we typically act as investors are reflective of our self-perception.
We’re here to transform and make a huge difference, but mental performance is the main ingredient!