The Tough Side Of Forex Trading

The Tough Side Of Forex Trading

You are sitting in front of your PC. Your heart is racing, sweat is starting to pearl on your forehead and adrenalin is pulsating by your veins at the speed of white light. You have live trade on the very popular Forex Market and your emotions are going mad.

If you ever wanted to feel like pregnant woman ( no offense intended) then this just the way to do it. A extent of pips and candles and fibs is glaring at you from the computer screen. Your money is gangling around in the air with your perspiration and the only thing that you can do is to have faith that you made the right move with you’re trade.

This is all very scary and exhilarating at the same time. Some times trading the Forex Market should be compared to teasing a hungry lion with an open cage gate. Sometimes it is just downright tough. Why you ask? Because your emotions are out of control and that makes you scared money; and scared money always looses. Why would you lose your money when you are scared, because you will jump out with you winning trades with small gains; and stay in with your losing trade, hoping that the market will not hit your stop and take your money.

How can you prevent your emotions form ruining your trading career? First off never trade money you cannot provide to lose, you cannot use money that you saved up for your retirement or study money for college, or any money that if it is gone you are in thorough trouble. That will make your trading very difficult, now you need a plan of attack to trade the market if you do not have a plan do not live trade use a demo account to build your strategy. Demo trade until you make continued winning trades and see your demo account grow. Then you are starting to get your emotions under control. The most important rule of them all never trade with out a STOP. Otherwise you’re out of control. If your system tells you that you must take this lost never move your stop it will only worsen your losing trade.

What must I have in place before I start trading live? You must have a plan of attack and have the strength and discipline to stay with your Plan. If you lose, you have to go back and check if you followed your strategy if not, to not trade again until you fix it. Every strategy will lose sometimes and you will have to learn that losing it part of trading. Learn form every loss you take, by writing down the reason why you lost, so next time you will not make the same mistake again.

Trading is like exercise, jogging, you need to practice, to become emotionally free, to be in control when you are trading. When you have your emotions under control then you will succeed and make yourself a great big bundle of money.

Good luck on building your winning strategy!

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