How to control your trading psychology in forex

In this article we would be discussing on how to control your trading psychology in forex.

One of the most important aspect in forex trading is your psychology.

No matter how good you are, how good you study,practice,analyze,if you can't control yourself psychologically,trading would be an issue.

Psychology is one variable that will ensure your success in the market.

Controlling yourself psychologically can come in different aspect,you must be able to control your mental state,don't make decisions in haste and many more.

Giving yourself control is the most important thing you can do to ensure your success in the market. Lack of control would surely allow you to make bad decisions while trading the forex market.

Now let's go straight to how you can control your trading psychology in the forex market.

*Create a trading plan and personal rule

*Learn to trade during the right market condition

*Learn to accept losses

*Know when to take profit

*Backtest your trading strategy

*Think and act like a winner

*Follow the right mentore

*Create a trading plan and personal rule:

The first way you can give yourself control is to create a trading plan for yourself.

Creating a trading plan to follow tends to give traders control over their emotions. You set up your rules,your R:R,which is your risk to reward ratio for your entry and your exist. You create plan for when to trade and when not to trade.

*Learn to trade during the right market condition:

The next step is to learn to trade the right market condition. You must be able to understand yourself. You trade when you feel it is time and your analysis is in line with the market condition. Know when to trade and when not to trade.

*Learn to accept losses:

Another way to gain control is to learn to accept your loss.

You can't escape it,every successful trader out there do have losses.

No one is perfect in the market,even the best traders do have losses,accepting this fact would make your trading journey easy.

Loss is a part that affects many traders. Your reactions to every loss you make,would determine if you are a good trader or not. Consider every loss you make as a lesson,learn from it,don't just go to the market and keep doing revenge trading.

Consistency is all you need,once you are profitable embrace it and once you are making losses also learn from it.

*Know when to take profit:

A perfect entry must have a perfect exist. No matter how perfect or great your analysis might be. As a good trader, you must know when to exit.

You must not be greedy,try to always give yourself control.

Have your Take profit in place and know when to exit.

*Backtest your trading strategy:

As a trader you must always learn to trust your strategy and feel confident about the strategy you are using.

Once you backtest a trading strategy,it would show how effective it is and this would boost your confidence and help you psychologically in your decision making.

Train your mind to recognise chart patterns and understand how your strategy works.

*Think and act like a winner:

This is very important cause the way you reason would influence your decision in the market.

Confidence is all you need,you can't take trades fearfully. You have to believe you are a winner,think like one and also act like one.

*Follow the right mentor:

Having a very good mentor helps a lot. Once you have the right mentor and you follow in his/her footsteps it helps a lot and boost your confidence.

Conclusion

In conclusion ,apart from your strategy ,backtesting,your psychology is the most important part you have to work on,cause this would determine if you are going to be a successful trader or not.

Komolafe Peter Adedayo

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