In fact failure (losing trades) is intrinsic to trading. You cannot trade and never lose. It is impossible to be in the controlling seat and there will always be unpredictability. Learning to read charts and how to trade technically is relatively straight-forward. Learning the psychology to deal with the inevitable losses is what separates the winners from the losers. Perceived failure undermines confidence and a failure of confidence undermines motivation. This can lead down two different paths: one where the desire to trade and succeed as a trader dwindles; the other to renewed determination not to give in.
“Our greatest glory is not in never falling, but in rising every time we fall”. This quote by Confucius is wholly relevant to the mindset a trader must develop if they are to succeed; it cannot be overemphasized.
The issue is primarily to do with how we buy into trading in the first place. More often than not we have read or been told that trading is the easy and fast way to making considerable money. In the mind’s eye of the novice, wealth and trading are synonymous. This of course is naïve because the reality is that the vast majority of novice traders fail. Our expectations are set too high. Inevitably trading is not some stand-alone activity that sits outside the normal laws that apply to success. It takes hard work and perseverance. The rewards are certainly there, but they don’t hang like heavy fruits waiting to be plucked by any passer by.
It is important to grasp the reality of learning to trade and not think of it as a ‘get rich quick’ scheme. That will only lead to disappointment. Knowing that losing trades are a part of the process of being a trader, a natural expense, which we accept and learn from is probably the most important early step to take and one that starts to put us into the mindset of the professional – emotion free trading. This allows us to follow our trading plan and apply our trading strategies with consistency and discipline, and rules out emotional reaction to loss. If a trade is entered only when our rules are met and then managed with discipline we have nothing to fear, even if it loses. There is a lot to be gained from reviewing losing trades, a process that all professionals go through.
It is perfectly possible for any of us to learn the skills required to trade successfully. Our main obstacles are ourselves, i.e., how much do we really want it? How much effort are we really prepared to put in?
To understand more we need to be around the professionals, seeing how they trade the market and learning first hand the importance of price action strategies and self-discipline. By doing so we put ourselves on the road to fearing less and understanding more, ultimately the road to success.
Editors’ Picks
EUR/USD advances to near 1.0750 as risk appetite regains balance
EUR/USD extends its winning streak for the third successful day, trading around 1.0730 during the Asian session on Friday. The risk-sensitive currencies like the Euro gain ground as risk appetite regains balance ahead of US Nonfarm Payrolls.
GBP/USD trades on a stronger note 1.2530, all eyes on US NFP data
The GBP/USD pair trades on a stronger note around 1.2540 amid the softer US Dollar on Friday. The US Federal Reserve Chair Jerome Powell delivered a modest dovish message after the meeting on Wednesday, which weighs on the Greenback.
Gold lacks firm near-term direction, remains stuck in a range ahead of US NFP
Gold price struggles to gain any meaningful traction amid mixed fundamental cues. The Fed’s less hawkish outlook drags the USD to a multi-week low and lends support. Bets for a delayed Fed rate cut and a positive risk tone cap gains ahead of the US NFP.
Solana price pumps 7% as SOL-based POPCAT hits new ATH
Solana price is the biggest gainer among the crypto top 10, with nearly 10% in gains. The surge is ascribed to the growing popularity of projects launched atop the SOL blockchain, which have overtime posted remarkable success.
US NFP Forecast: Nonfarm Payrolls gains expected to cool in April
The United States Employment report will be released by the Bureau of Labor Statistics at 12:30 GMT. The US Dollar looks to employment data after the Fed signaled its intention to hold rates higher for longer on Wednesday.
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