12 instructions to be successful in the forex trader ~ theater of dreams

Instructions to 8

Understand Yourself

Self-control is very important and greatly affect the success rate of trading. It seems you can not win this business if you are still behaving naturally by following the natural tendency in yourself. If a profit, you start thinking to get a lot more or just the opposite, you are rushed immediately remove it. If your position against the market, you fear the loss and then expect miracles and good fortune to come help you. If your capital began to multiply, you are very confident and started to dare risking everything you got, or you do not discipline execute your trading plan well for the bait market danced in front of you.
Consider a few facts that were written Dr. Van Tharp in the book Trade Your Way to Financial Freedom the following,

Most market professionals that successfully achieve success by controlling risk. Controlling the risk of going against the natural tendency in human beings. Controlling risk memelukan a very strong self control.
Most successful speculators have success rates of 35 to 50 percent. They succeed because they do not predict very well. They are successful because of the size of transactions that benefit far exceeds the losses. This requires a very strong self control.
Most conservative investors who succeed are those who behave the opposite. They do what others feared to do. They have patience and altitude to wait for the right opportunity. It also requires self-control.

Conduct self-control against the natural tendency does require an experience. You have a commitment because you've never felt the result of indiscipline. On the other hand, the understanding of the methods and good mental condition (mental independence) is also very necessary. Both a basic foundation in any decision-making.
Basically let the loss is a problem that is not easy. Similarly when holding gains for more leverage. However, we must understand that the successful trader is one who can master himself against the human being's natural tendency to deal with risks such as this.

Gary Bielfeldt
"You must have a strong character if you have a loss. You sure can handle it without any problem and come back for subsequent trading. You can not let the loss affect your emotions."

All successful traders almost agreed not to negotiate with the human being's natural tendency not to accept losses. Whatever the reason, you should already take into account the risk of the worst, that is soon to exit the market when the transaction you start losing, Richard Dennis said,

Richard Dennis
"You should have a limit of one of the worst incident. Just one way, you should get out immediately."

During his career as a trader, Larry Hite often find that investors often fail to respond to incidents at a loss, most of them are very natural in the face of this business, he once said,

Larry Hite
"During my career in the financial field, I have always witnessed examples of other people, that I have learneda failure to respond to the loss. If you do not pay attention to the risk seriously, you will become a victim. If you're still arguing with the market, you will lose . "

In self-control in certain circumstances is not easy. Moreover, when we experienced some loss, we usually tend to be emotional and wanted to get it back. It is very risky and the opportunity to fail is very high. Marty Schwartz said,

Marty Schwartz
"Whenever you lose, you become very emotionally upset. Most traders try to cover those losses as soon as possible by risking that in large numbers. When you try to recover your losses quickly, you most likely willfail. "

If you start now able to be yourself, and you seem very different from the general trader, you are ready to accept losses. You do not expect the excess or you have to act rationally then do not worry when you are different from the majority of which exist because of what you are doing is correct.

Bill Lipschutz
"It is very difficult to be different from most people so far they are doing. The definition is what you do if youare a successful trader. "

To keep mentally still excellent, you should not be in the market all the time. Relax, enjoy the beauty of the island of Bali or other places. After an exhausting few weeks, this will help you to see the market from a better perspective. There is a proverb that says, "One time when you are very close to the forest you can not see the trees ."