Ask anyone who has spent some time to learn forex trading, and they will tell you that your emotions can be the biggest roadblock on the way to financial success. Many smart people go into Forex, and they are smart enough to figure out the right kind of trading strategy to use.
They are able to understand all about the complicated bars, graphs, and charts. They really know what they plan to do.
And then, they change their plans. They see something, and they react regardless of what their analysis and plan tell them. They become too greedy and go after bad setups, they become too fearful that they get out of a trade too soon, or they act out of pride and stay when they ought to get out.
There are many articles about Forex which tell you to stick to the plan, but they somehow don’t tell you how.
Sticking to the plan is easy to say—but it is extremely difficult to follow.
So here are some concrete tips on what you should do which can help you manage your emotions so that you can actually stick to your plan:
1. Make sure you write down your plan. You can’t just keep it all in your head—if you haven’t written down your plan, you don’t really have a plan at all. Then you also need to keep a trading journal so you can track your progress. You have to see how you are doing, so you know.
2. Keep your work space neat and organized. If you want to learn to keep your cool, then your home office should be a relaxing place to be. So learn to get rid of all the clutter, because the sight of them can be upsetting. If you like music, play something that soothes you instead of something that agitates you. Better to listen to some classical flute music than death metal.
Keep your desk neat, and maybe you can invest in a proper chair. An uncomfortable chair is not conducive to helping you stay calm.
If your home is a constant hub of activity and you can’t concentrate, then get a laptop and find a place where you can have some quiet while you trade.
3. Maintain a schedule. If emotions and whims get the better of you, then you can practice resisting them by keeping to a schedule. When do you start to sit in front of your PC and start trading? How long do you do your analysis?
So that you don’t get used to letting your whims dictate your actions, you should start trading at the same time every day. Keep to a ritual. Maybe you can start your computer while you are brewing a cup of coffee, or you clean your chair and desk. The point is to develop habits related to your Forex trading, so you get used to doing the same things over and over again.
Once you develop habits like these, you can start developing the habit of consulting your trading plans before you start executing trades.
You begin to learn that habits can be more powerful than emotions. That’s the reason why military personnel do drills, because habits can train them to do what they’re used to do even though their emotions are telling them to run away from the people shooting them.
4. Get enough sleep every night. A goodnight’s sleep can help you feel calm for the rest of the day. For adults, that’s at least 7 hours of sleep a night. So turn the lights off and keep everything quiet so you get a good night’s sleep. If that’s not possible, buy an eye mask and ear buds.
5. Make sure you get some days off. Just about every expert about stress will tell you that vacations and rest days are crucial to your psychological well-being. You can’t do without them. You need them to take away the constant pressure of work, so you can breathe and relax. Without regular time off, you will almost certainly be a burnout eventually.
6. Have some healthy snacks. When you are monitoring your trades, sometimes you may make decisions or enter new trades because you have nothing else to do. And that’s why you should have some healthy snacks nearby.
Whenever you feel the urge to do something that’s not in your Forex trading plan, you can just take shove a few almonds in your mouth. That should give you something to do without messing up your plans. Besides, it’s hard to think and focus when you’re hungry!
Yes, humans are emotional creatures, and sometimes our emotions can get the better of us. But with these tips, you can keep the emotional interference to a minimum, so that your plans can actually get you the profits you have been aiming for.
They are able to understand all about the complicated bars, graphs, and charts. They really know what they plan to do.
And then, they change their plans. They see something, and they react regardless of what their analysis and plan tell them. They become too greedy and go after bad setups, they become too fearful that they get out of a trade too soon, or they act out of pride and stay when they ought to get out.
There are many articles about Forex which tell you to stick to the plan, but they somehow don’t tell you how.
Sticking to the plan is easy to say—but it is extremely difficult to follow.
So here are some concrete tips on what you should do which can help you manage your emotions so that you can actually stick to your plan:
1. Make sure you write down your plan. You can’t just keep it all in your head—if you haven’t written down your plan, you don’t really have a plan at all. Then you also need to keep a trading journal so you can track your progress. You have to see how you are doing, so you know.
2. Keep your work space neat and organized. If you want to learn to keep your cool, then your home office should be a relaxing place to be. So learn to get rid of all the clutter, because the sight of them can be upsetting. If you like music, play something that soothes you instead of something that agitates you. Better to listen to some classical flute music than death metal.
Keep your desk neat, and maybe you can invest in a proper chair. An uncomfortable chair is not conducive to helping you stay calm.
If your home is a constant hub of activity and you can’t concentrate, then get a laptop and find a place where you can have some quiet while you trade.
3. Maintain a schedule. If emotions and whims get the better of you, then you can practice resisting them by keeping to a schedule. When do you start to sit in front of your PC and start trading? How long do you do your analysis?
So that you don’t get used to letting your whims dictate your actions, you should start trading at the same time every day. Keep to a ritual. Maybe you can start your computer while you are brewing a cup of coffee, or you clean your chair and desk. The point is to develop habits related to your Forex trading, so you get used to doing the same things over and over again.
Once you develop habits like these, you can start developing the habit of consulting your trading plans before you start executing trades.
You begin to learn that habits can be more powerful than emotions. That’s the reason why military personnel do drills, because habits can train them to do what they’re used to do even though their emotions are telling them to run away from the people shooting them.
4. Get enough sleep every night. A goodnight’s sleep can help you feel calm for the rest of the day. For adults, that’s at least 7 hours of sleep a night. So turn the lights off and keep everything quiet so you get a good night’s sleep. If that’s not possible, buy an eye mask and ear buds.
5. Make sure you get some days off. Just about every expert about stress will tell you that vacations and rest days are crucial to your psychological well-being. You can’t do without them. You need them to take away the constant pressure of work, so you can breathe and relax. Without regular time off, you will almost certainly be a burnout eventually.
6. Have some healthy snacks. When you are monitoring your trades, sometimes you may make decisions or enter new trades because you have nothing else to do. And that’s why you should have some healthy snacks nearby.
Whenever you feel the urge to do something that’s not in your Forex trading plan, you can just take shove a few almonds in your mouth. That should give you something to do without messing up your plans. Besides, it’s hard to think and focus when you’re hungry!
Yes, humans are emotional creatures, and sometimes our emotions can get the better of us. But with these tips, you can keep the emotional interference to a minimum, so that your plans can actually get you the profits you have been aiming for.
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