People get involved in the Forex Market for different reasons. Many traders, like me, trade for profit. But there are others who love the thrill of the game. The various reasons people have for trading have different results. Disciplined trading can be a bit boring, but it is very profitable. On the other he had; taking positions recklessly, often, in the market is certainly very exciting; but you could also go to a casino instead.
Overtrading is one of the main reasons most accounts go bust.
Before turning on the computer, take a deep breath; Relax!! Think about the reasons why you are trading in the first place. If you’re in for a rollercoaster ride of emotions, then expect to lose a few bucks along the way.
You must understand the difference between trading and gambling. When the market hits a player, he immediately seeks revenge; thinking that he can outwit the market. A good trader sees his losses as a normal part of doing business.
You have to be responsible for your decisions. A lot of people, the gamers, blame their system when they take a big hit. They start pointing fingers and go in search of the next Holy Grail; only to start over when the next loss comes.
A good mechanic system can help players control their emotions, but only if they commit to following it diligently. Trust the rules of your system and pull the trigger only when you’re supposed to. If you experience a loss; treat him in a mature way. Never allow yourself to over-bet; keep your risk-reward ratio at safe levels.
Overtrading is one of the biggest and most common mistakes newbies make. If you can get past this hurdle, your chances of making a living as a trader will increase dramatically. The only honest advice I can give you to overcome the disease of overtrading is self-knowledge. I always say the same thing, know yourself and you will win. Believe it or not, the most important asset you can have as a trader has nothing to do with the rules of your system or the market itself. (Hint: It’s about you.)
The Forex market works in the same way as swimming or driving. You may be able to get the best system out there. You will study it, and you will learn it by heart. But the truth is that you will become a trader only when you start trading. When you experience your first loss, your first win, your first trading session, you will realize that theory is only part of the equation. A good trusted mentor can be a great asset in your learning process. But the truth is that you learn by yourself. Promise yourself (if you want to become a good trader) that you will succeed no matter what. If you’re serious… you will!!!