When we think about becoming a success in Forex trading, our first thoughts might point to turning a profit. But how do we get to this point and what are the barriers that may stand in our way?
To answer the question, we as human beings can, more often than not, be our own worst enemies. As humans are emotional beings, it is not uncommon for our emotions to take over whilst trading and thus affecting our profitability which attributes towards our overall success.
The emotions we should try our best to keep in check would be fear, greed, and ego.
It is important to keep our ego in check and place it to one side. A cocksure attitude will only result in you laying down more of an investment on an asset that you want to do well rather than believe will do well.
Maintain discipline and research effectively.
Do not let fear and greed get the better of you.
Fear can be particularly debilitating as we may close a position too early when there is more profit to be made. Fear strikes when we think a price might crash.
The same can be said for greed. Many traders leave a position open for too long, trying to extract every last slice of profit from the position and can then left with nothing if the price crashes, thanks to greed.
To counter these feelings, there are preventative measures we can take.
Keep a diary of how you are feeling when in a trade, so you can reflect on how you felt at a later date
Once you have chosen a strategy - stick to your guns
Set yourself a daily profit target and stick to it
Separate yourself from your trading environment often. Go for a walk to get a clear head and maintain a sense of trade/life balance
Never use money that you need
Set your emotions aside and enjoy pristine trading conditions at EagleFX.
Benefit from tight spreads, high leveraged trading with access to a 24/7 professional support team.