MANAGING YOUR EMOTIONAL EQUITY & TRADING CAPITAL

[FX4Newbies]

Hello Trade2Win Community,

In this thread, it is my goal to discuss the heart-mind issues that traders experience via discussions, and also from an experiential standpoint, i.e. through looking at and studying actual trades (via videos). Why actual trades? It is because during the trade itself is when the emotions tend to surface. In my trading journey, I have seen people panic when losing, which I think we can all understand, but it can also happen when winning. Emotions can be very tricky, and so in order to succeed at trading, we need to be able to handle them (the emotions) in a way that works for us.

This thread is about discussing and finding ways that would help traders to manage themselves better. Of course, a trader would also need a sound trading method or edge which they are able to trade. Once that method is in place, and the heart-mind connection is solid, then the path is ready for a trader to be the best they can be!

This thread is for traders who want to succeed at trading.

Looking forward to the journey!

 

[FX4Newbies]

Starting off, I would like to make some foundational statements:

1. Every trader is different, so each trader needs to have an understanding about what their emotional triggers are in trading.

2. Traders MUST accept the fact that trading is risky, and they can and very likely will lose money at some point.

3. The price action is designed to trigger the emotions of the fearful. If you trade impulsively, jumping in without a system or method, you're already trading on the proverbial "wrong foot".

4. Fear of loss is one of the most deadly fears in trading. There are others which we will discuss.

5. The trader is responsible for bringing COURAGE to their trading. There is no escaping it.

We'll take a look at this further...leaving this here for now.

 

[FX4Newbies]

Here's some FOOD FOR THOUGHT as we continue this discussion.

Most Forex brokers report that close to 80% of retail traders lose money. The question is, "How can that be possible with all of the FREE Forex information online?" Even brokers' websites offer free education. Well, the truth is, it takes more than information. Most people think that if they can just learn to trade, they will be able to trade. The question becomes, "Learn what and how?"

So where should a new trader start?

1. Should they open a Demo Account and go about learning a trading method?

2. Should they first speak with a good trader to get some other details before jumping in?

3. Should they evaluate their trading mindset?

4. Should they assess their fears about losing money?

All of these points for sure are part of the journey.

Many new traders though are caught up by the potential of making large sums of money, but never accept the reality that they can lose. Their expectation of the markets is skewed. Truth be told, most people have not been conditioned mentally or emotionally for trading in the financial markets, and especially the Forex Market, which is VERY volatile.

As we prepare to go deeper into the trading journey, begin to examine where you are, regardless of whether you're a Newbie or not. Be honest with yourself and write down where you'd like to be as a trader...not just the pips you'd like to be making, but the person making those pips.

We'll pick up this discussion from here...