Due to the influence of the erratic currency market, often this will affect our psychological. Therefore it is very important to be tough and have high confidence when trading.
Basically, confidence is the ability to actively focus on better performance and avoid negative thoughts such as anxiety and fear. But with an ever-changing market and seeing loss when trading sometimes makes you unable to maintain your confidence.
1. Focus on the process
Almost every forex trader that I know chooses trading as his profession, and all it does to make it look like an office job that keeps earning money on a regular basis. However, focusing too much on the results of trading will damage your mental as a whole.
One thing to keep in mind is the market is unpredictable. There is no guarantee that you will win or lose. Everything is still a probability. Instead of focusing on the profit and loss results, why do not you put your focus and mind to make sure you are obedient and disciplined in your trading plan.
You should not focus too much on the outcome, but on how disciplined you are when trading.
Every time you follow the rules you make that’s the success story itself.
So reward yourself when you succeed in self-discipline waiting for the candle to close before entering a position or closing a position. You may not see the results right now, but in the long run, your discipline will turn into a consistent habit of making mistakes, which of course will result in consistent confidence and trading with consistent profits.
2. Exercise, Exercise and Exercise
Do you know the reason why boxing champion Manny Pacquiano spent his days practicing for a fight that lasted for about 36 minutes? Because only on the basis of maximal preparation, he develops self-confidence through mastery of ability.
Manny does not know exactly what his opponent will do to defeat him. But, having gone through a strenuous training, he has mastered the fundamentals of boxing ability, how his body moves, and how to anticipate when his opponent’s fist comes.
As a trader, you will not be able to precisely predict which sentiments are affecting and how the market moves. This means that the key to self-confidence and success is to prepare yourself every day until you know how you handle the various scenarios of the market that can happen.
3. Look at the bright side of everything
Ask yourself “From all the confident people you’ve met in your life, how many of them have a personality and a negative outlook” I’m sure the answer to that percentage will be very small, even non-existent. Successful and confident people tend to be personable and optimistic because when you focus on the positive, you tend to get positive results.
So, while feeling again unlucky, reflecting, eating all the ice cream in the fridge when you are in the middle of floating and big losses, keep thinking positive and you will be able to follow your trading plan correctly. Remind yourself, if you already have a properly tested trading plan and proper risk management, the average law will work and the profits will come.
One way to train this is by actively focusing on the things you do right with each trade, especially if the trade is moving against you.
– Review of economic data? Check
– Analyzing charts? Check
– Risk Restrictions? Check
By ensuring you have set up what you can and will focus on handling forex trades either profitable or loss will undermine your fear of loss, and will give you the confidence to pick up a valid signal and make a good decision.
As with developing your forex skills, trading with high confidence is easier to talk about than practiced and it will not work without hard work.