Mastering Mind over Money
|When trading forex it's your mind who makes the money. It's not the market that gives you money. The market does what it does. So you need to be aware of your mind as much as possible at all times. MOM (Mind over Money) means that you don't chase the money, but let your mind extract what you deserve (based on your knowledge and abilities).
Putting your mind over money is not easy and it's an ongoing process. You have to see your mind as a muscle that you constantly have to train and maintain. As long as you're a trader, this process will not stop and it it won't always be easy either. It's like an uptrend; sometimes there will be small retracements. Those are the times you get help from your mentor or peers.
Many aspects
As diverse as trading styles and traders are, as diverse are the psychological aspects and problems that traders face. All these aspects are born out of the affect that monetary value has over your mind. The reason people have such strong emotions around money is because it signifies value. You value yourself by how much you have and what you own. It’s painful to have thoughts about what you don’t have and what you can’t do.
When in, about to take or after a trade, all of these emotions start to influence your ability to judge the market for what it is telling you. There are many tools and exercises to deal with this and that will help improve your trading tremendously.
Final words
Being aware of when your emotions are influencing your trading is just the beginning. Even when - after rigorously educating yourself - you know what to do when you become aware of the influence; it is still not easy to actually take those actions. This is because you need to change your behavioural habits and it can take a while to change habits. Being in a team and with a coach, can make a night and day difference in making this journey much easier.
#UrbanForex - Be conscious of your trading!
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.