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People get involved in the Forex Market for different reasons. Many traders, like me, trade for profit. But there are others that just love the thrill of the game. The diverse reasons people have for trading carry different results. Disciplined trading might be a little bit boring, but it is very profitable. On the other had; recklessly taking positions, frequently, in the market is no doubt very exciting; but you might as well go to a casino instead.
Over-trading is one of the main reasons most accounts get wiped out.
Before you even turn on your computer take a deep breath; relax!! Think of the reasons you are trading in the first place. If you are in for a roller-coaster of emotions then expect to lose some dollars in the way.
You need to understand the difference between trading and gambling. When the market hits a gambler he immediately seeks revenge; thinking he can outsmart the market. A good trader looks at his losses as just a normal part of doing business.
You need to be responsible for your decisions. Many people, the gamblers, blame their system when they take a big hit. They start pointing out fingers and go in the search for the next Holy Grail; just to start all over again when the next loss comes.
A good mechanical system might help gambles control their emotions, but only if they make a commitment to follow it diligently. Trust your system’s rules and pull the trigger only when you are supposed to. If you experience a loss; deal with it in a mature way. Never allow yourself to over-bet; keep your risk-reward ratio at safe levels.
Over-trading is one of the biggest and most common mistakes rookies make. If you are able to get over this obstacle your odds for making a good living as a trader will dramatically increase. The only honest advice I can give you to overcome the over-trading disease is self-knowledge. I always say the same thing, know yourself and you will conquer. Believe it or not the most important asset you might have as a trader has nothing to do with your system rules or the market itself. (A clue: it’s about you.)
The Forex Market works the same way as swimming, or driving. You might be able to get your hands on the best system out there. You will study it, and learn it by heart. But the truth is you will become a trader only when you start trading. When you experience your first loss, your first win, your first trading session you will realize that theory is only a part of the equation. A good trustworthy mentor can be a big advantage in your learning process. But the truth is you learn by yourself. Make a promise to yourself (if you want to become a good trader) that you will succeed no matter what. If you are serious… you will!!!
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Source by Luis Garcia De Alba Diaz
