By Admiral Markets
The world of Forex trading has always been a battlefield.
Traders are often fighting against the market or each other.
Some of the fighters will stand atop and the others will fall.
But there is more to Forex trading than plotting against these elements.
The real fight happens within each trader:
Free Reports:
…and this fight decides the war’s outcome.
I never go easy on myself.
I am my harshest critic.
I know my weaknesses and I don’t lie to myself about them.
Despite all my years of experience, I am still not completely satisfied with my performance.
My followers and students will often tell me how great my trades and decisions are.
As much as I appreciate their compliment, I usually dismiss it.
In short:
…Forex trading is not only about winning or losing…
…it’s also about doing something you love and constantly learning to be better at it.
Most retail traders think the battle is won once they end their first month in profit.
This is a rookie mistake.
Trading is not about blind luck – it is a unique blend of chess and boxing.
There are two types of fighters in the ring, including:
The mission of banks and institutions is not to beat the market or to trade against each other.
Why fight against other institutions when there are millions of vulnerable retail traders?
When I think about different types of traders, I always come back to
The Wolf of Wall Street.
This title is apt because the trading world is full of bad wolves and sheepish traders.
But whether fighting wolves, the market or yourself – you can never survive by bending a knee and pleading mercy.
You can only win the match by outsmarting your opponent via:
Throwing blind punches will put you on the ropes.
Knowing when to duck and when to punch is just a matter of practice.
Work on your stamina and discipline before you step into the ring.
If you want other traders to treat you with kid gloves, you may as well throw in the towel.
Why?
Because institutional traders do not pull their punches.
Instead, they exploit your
emotions to drive you and other retail traders into making bad decisions.
Your lack of knowledge and experience represent opportunities for them.
The reason individual retail traders are often easy prey, is because they tend to have false hopes.
“I think the price will come back.”
“I never use stops because the price will eventually turn my way.”
Does this sound familiar to you?
Hearing these lines always tells me I’m dealing with a rookie trader.
This is what separates the sheep from the professional traders.
Forex trading is not about false beliefs:
…it’s about conviction to do what needs to be done.
Have you ever noticed that there is a conversation within you, every time you make a trade?
You may even hear voices in your head, filling you with doubt and fear.
What you experience is a dance of thoughts.
Because of it, your rational mind may give in to self-doubt and then failure.
The first voice you may hear, is of your inner critic judging a possible trade.
The second voice belongs to an impulsive trader who wants to
chase the market and make revenge trades.
Learn to ignore these voices.
If you fail to control your thinking process, the dance of thoughts will waltz you off the successful trading floor.
Just remember that true passion always comes at a price.
And if you want to be the best, you have to overcome your own weaknesses.
Cheers and safe trading,
Nenad
Article by Admiral Markets
Source: Facing your toughest trading opponent
Admiral Markets is a leading online provider, offering trading with Forex and CFDs on stocks, indices, precious metals and energy.