British Pound / U.S. DollarEducation
How to succeed on the market
There are so many opportunities in a single pair that one can maximise. The secret is to choose one or two pairs and maximize them. You are not going to miss out on anything. Many traders are psychologically affected by the following:
1. Fear of Missing Out (FOMO). Many think if I focus on only one pair I will miss out on the opportunities from other pairs. No, you won't because in one single pair if you are an intraday trader there are so many opportunities to capitalize on. FOMO cause traders to traders to jump into the markets too early and too late for the fear that they will miss out on an opportunity. There is no single opportunity in the market that will make you rich and opportunities are never going to end.
Before you started out in forex trading you had missed out on so many opportunities. Remember forex did not start when you started and will not end when you stop trading. Before you were born forex was already there which means opportunities were there. So missing one opportunity today should not make you lose your mind and be hard on yourself.
Think of opportunities like public buses. When you reach the bus station and find that the bus has left, do you start cursing yourself and being hard on yourself? The answer is no! You simply relax and wait for the next one. If the next one doesn't please you, you still wait for the next one. The same way you never feel bad when you miss one bus is the same way you should feel one you miss one trade. Don't feel bad. Know that another opportunity will come your way.
We have been raised with the faulty thinking that money doesn't grow on trees. That's a belief so deep that when we get into the market, we want to make all the money in one trade. Our faulty thinking whispers to us that there may never be another opportunity like this so we tend to become careless and leverage.
90% of trading is psychological and only 10% is technical. Once you understand that you are dealing with a market with abundant opportunities to make you rich you will trade stress-free. Even if you take a loss, you will not take it personally knowing that as long as am using good risk management, another opportunity will come my way and I will recover my loss.
Don't go into revenge trading because of one loss. Losses are part of the game. Learn to live with them and love them the same way you love take profit.
Here is the truth, Losses are under your control, and profits are not. If you take care of the losses the market will take care of the profits.
Causes of FOMO
1. Lack of a trading plan
2. Lack of trading discipline
3. Information overload
4. Social media influence
5. Having a scarcity mentality
1. Fear of Missing Out (FOMO). Many think if I focus on only one pair I will miss out on the opportunities from other pairs. No, you won't because in one single pair if you are an intraday trader there are so many opportunities to capitalize on. FOMO cause traders to traders to jump into the markets too early and too late for the fear that they will miss out on an opportunity. There is no single opportunity in the market that will make you rich and opportunities are never going to end.
Before you started out in forex trading you had missed out on so many opportunities. Remember forex did not start when you started and will not end when you stop trading. Before you were born forex was already there which means opportunities were there. So missing one opportunity today should not make you lose your mind and be hard on yourself.
Think of opportunities like public buses. When you reach the bus station and find that the bus has left, do you start cursing yourself and being hard on yourself? The answer is no! You simply relax and wait for the next one. If the next one doesn't please you, you still wait for the next one. The same way you never feel bad when you miss one bus is the same way you should feel one you miss one trade. Don't feel bad. Know that another opportunity will come your way.
We have been raised with the faulty thinking that money doesn't grow on trees. That's a belief so deep that when we get into the market, we want to make all the money in one trade. Our faulty thinking whispers to us that there may never be another opportunity like this so we tend to become careless and leverage.
90% of trading is psychological and only 10% is technical. Once you understand that you are dealing with a market with abundant opportunities to make you rich you will trade stress-free. Even if you take a loss, you will not take it personally knowing that as long as am using good risk management, another opportunity will come my way and I will recover my loss.
Don't go into revenge trading because of one loss. Losses are part of the game. Learn to live with them and love them the same way you love take profit.
Here is the truth, Losses are under your control, and profits are not. If you take care of the losses the market will take care of the profits.
Causes of FOMO
1. Lack of a trading plan
2. Lack of trading discipline
3. Information overload
4. Social media influence
5. Having a scarcity mentality
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.