Forex Psychology With 5 Rules Of Trading That Make A Substantial Difference In Your Bottom Line

One has to simply understand the mindset and the physiology of a serial killer and understands his mechanism as to how he successfully nails his strategy before he zeroes in on the kill. This is a basic bottom line to help anyone make some money out of the forex deals. On the other hand in order to be a consistent performer one has to be on top of the league. It demands a lot of investment in time and moreover one has to go back to the drawing board and learning some forex education. Let us discuss the tips and tricks behind the much hyped forex physcology.

1.Follow the golden rule. Be methodical and keep every record. It is not the point of contention that whether it is a profitable transaction or not. In fact, you can keep a digital record, which is always better, or a manual one, if you want to keep it simple. There are a lot of free forex tools available. At the end of the day, sit back, relax and with a clear mind analyze the different transactions you have made. By the end of two weeks, one can get to see the flow of the graph and get a feel of the trading market.

2.Keeping notes next to the entries always facilitates and reckons one’s memories as to what was the purpose of the transaction. This gives a valuable insight as to the proceedings of the day. In this way one can link the series of transactions that have been made.

3.It is always advisable never to risk more than 5 percent of your total balance in your account. If you go by my forex physcology I would never go overboard more than 3 percent. Ultimately, you have to take a call what suits you well. The golden rule is to tread cautiously. Let’s take a case study that if you have 100 dollars then you should not risk more than 5 dollars on any given transaction.

4.It is a well-known fact that the best things in life are simple. So, choose a simple and a comprehensive forex trading system and stick to it. Choose a complete Forex trading system and stick with it. It should fulfill the following guidelines of being complete in every respect. Moreover, all the rules should be clearly defined and they should be thoroughly tested as per the actual market conditions. This will enable you to understand the system and you can be profitable over time.

5.Facing losses is not negative. In fact it allows you to be prepared for the next big thing and your forex trading system has been customized to handle the downfalls in the big forex game. Deal it from a practical point of view and never get emotionally carried away. Stay in charge and stay hungry for more. Your time will come. It is always human tendency to recoup what one has lost but never do it in the short run. Focus on the strategy and not on the end result.

Always keep on gaining new experiences. It is always better to expand your education because this is one forex education investment you will never regret.

Categories: Tutorials

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