Emotions can be the most dangerous enemy for the traders. Most of the retail traders are losing money due to lack of control over their emotion. They simply place random trades and hope for big profit. But trading is all about doing precise calculations. You need to have a solid technical and fundamental knowledge to master the art of trading. People in the United Kingdom are fascinated with the Forex trading world due to lucrative profit potential it offers to the participant. But before you jump into this trading world you also need to assess the success rate in this field. Only 5 % of the traders are making consistent money. So is it really possible to become a part of the 5% traders’ community? The answer is yes. But to do so you need to have a complete control over your emotion. Now we will give you some amazing tips which will help you to deal with your emotions while placing the live trades in the financial industry.
Learn to lose first
Losing trades are the number one reason which makes the retail traders frustrated. The new traders are always dreaming about making a profit. But in this industry, no one can win all the trades even after doing all the researches and studies. Losing is in evitable in trading. So the first that you need to do to gain control over your emotion is to accept all the loss. But losing trades should never exceed the size of your winners. This means you need to learn to accept the calculative loss. Most of the new traders’ use high leverage thus execute big lot trade. It’s true that sometimes they will have big winners but a single losing trade will be enough to wipe out the entire trading account. So always prepare to accept managed loss in trading.
Trade with small lot size
Trading with a small lot has extensive benefit in the life of traders. Most of the traders stick to the 2% rule of Forex trading world. But you need to take a risk in terms of dollar amount, not in percentage. If you are new to this investing world and start trading with $10,000 then by taking 2 % risk you are actually risking $200.So you need to ask yourself whether you are comfortable in losing that amount or not. Most of the traders in the exchange traded funds risk a certain amount of their trading capital. They know very well the percentage factors is only for the novice traders. You need to learn the advanced art of money management to gain full control over your emotion.
Use price action signal
Having a perfect trading system is very crucial in Forex trading. You need to develop your own trading system based on your own personality. The system must take care of all the three major part of the market analysis. If you are known then you will strong confidence in trading. Without having a high confidence level it will be hard for you to gain control over your emotion. When you lose a trade you need to understand that losing is very normal. But you should be able to find quality trading signals. You need to believe in yourself that you can make a profit on a regular basis. So instead of using indicators based trading system learn the price action trading strategy. Though this system is very simple, once you master this art you will realize, this is one of the best ways to trade the market.
Summary: Without having the right mindset it’s very hard to achieve success in any industry. When it comes to Forex trading make sure that you have complete knowledge about the dynamics of this market. Always trade the higher time frame using price action confirmation signal and consider your losing trades as a part of your business cost.