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Posted on Sep 12, 2021 at 08:54 PM
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While making money is your goal as a Forex trader, you cannot deny the fact that in most cases you can't control the market! So how can you navigate your trade physiology to ensure that you stay in control and make good money as you trade? Let's dive in!

As an astute Trader myself, I dwell more on Trading Psychology than any other thing so we’re gonna have some sweet pep-talk on that, ok. Let’s go!

Over my years of trading, what I’ve discovered and will love to share with you is that "consistent traders realize that making money is more important than being right” when it comes to Forex trading. 

No matter how sure you are about your trading decisions and analysis, there are days where the market can go the exact opposite of your trade and sometimes even longer than you can afford.

It's so important for you to understand that making money is the goal and accept that you cannot enforce your will/analysis on the market because it won't work that way.

Else, It will slap you in the face every single time and such mistakes or behaviour will cost you fortunes in Dollars!

To avoid these kinds of mistakes, you need to be flexible and willing to change sides when necessary. If you already have your bias for a direction, but the market is telling you that you are wrong, that's okay!

Make the switch to the trending direction and do what the market is telling you to do rather than tell the market what to do.

This is a secret that Successful traders have realized and leveraged on simply because they know no matter how good you claim to be the Market is always right!

Having stated that clearly, let's take a quick look at the 5 Fundamental Truths of Trading by one of the timeless Trading legends, Mark Douglas followed by my recommendations on how to apply them to your trading (in bracket).

  1. Brace up: Anything can happen in the market. (Bear this in mind and adjust yourself as your trades unfold/materialize).
  1. You don’t need to know what is going to happen next to make money ( Rather Create a “Set of Rules” to guide your Entry-&-Exits per trade and follow them instead).
  1. There is a random distribution between wins and losses for any given set of variables that define an edge ( always trade with a Risk-to-Reward/Loss-to-Profit Ratio for every trade order. I personally use 1:2/1:3, that is, risking 10-20pips SL while targeting 20-60pips TP as an example).
  1. An edge is nothing more than an indication of a higher probability of one thing happening over another (so what is your edge; which means, what exactly is your most dependable pattern or trading strategy? Find a few but “Master One”).
  1. Every moment in the market is unique(beware of over-confidence, always play by the Rules of your Entry-&-Exit because there is no perfection in the market. We could have similar behaviour happening in a slightly different pattern at different times so let your rule of Entry-&-Exit remain the same and guide you on what to do per time)

With these fundamentals carefully laid out, you just will find yourself in control, on the right part to trading profitable and growing your equity at a steady pace. 

I hope these points give you a clearer view of how to take control of yourself while trading in the very unpredictable Forex market. In the following episode, we will be discussing "why it is so important to focus on not losing money?" so stay tuned and lookout for the next episode!

Would you like to learn how to pick perfect entries using demand and supply zones? Join me & other traders in the September Traders Forum to discuss Trading Demand & Supply Zones with pointers on the BIG-4 pairs for the rest of the month.

Date: 11th September 2021. 
Time: 11 AM 
Venue: Zoom Online Meeting.

Click here to register now. 

Other events you can Join This September!

Target up to 200 Pips in our Live Trading Sessions Holding this Month: If you have a Real InstaForex Account & you want to trade with an Expert Analyst, then you are welcome to join our live trading session! Simply leave a message in the comment section saying " I want to join the live trading session" and we will contact you.

Are you a newbie who is still searching for a practice-based, Mentor-led, Forex Trading Education platform? You can sign up to our premium Online Forex Academy to enjoy first-class training and mentorship as you go through a fully practical Forex Trading Academy.  Click here to register immediately!

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