Awareness is a state that every trader should strive for.
By The Forex Review - 01 / April / 22 445
Dominick Bell
Awareness is a special state that provides clarity of thought and the ability to focus independently of external factors. Imagine how useful this worldview is for a trader.
Being objective is a skill that a trader cannot do without. It is not as difficult to develop as many people think. To do this, it is necessary to systematically and purposefully develop trading skills, focusing on compliance with the rules of trading strategy. It is very easy to lose focus and make mistakes due to inattention, especially intraday trader. Distraction can have a negative effect as soon as you try to win back.
Practice Awareness in Trading Today we will tell you about three basic principles of conscious trading, guided by which you can always stay fully focused. Also, following these principles can be a great strategy for you to reduce the impact of stressors.
- Preparing for trading
- Market monitoring
- Calm during trade
Preparing for trading This is not just about the usual preparation for each trading session. You need to have a framework that you can rely on when the market provides you with some information. That is, you actually need to formulate for yourself a system of expectations from different scenarios. This will help you not to get confused in the event of a situation, as you, in any case, will already be prepared a certain pattern of behavior. Objective market surveillance Absolutely all traders monitor the market, regardless of their skill level. But the quality of these observations will depend on a number of key factors.
Always be prepared. The market generates an endless stream of information from which you need to clearly identify the relevant data to make a deal on your trading strategy. You need to know exactly what you are looking for in the market. This will allow you to be ready to act at the right time.
Objective analysis. The desire to see certain things in the market can motivate you to seek confirmation of erroneous ideas. This approach will not get you anywhere. This is self-deception. Beware of such psychological traps. Evaluate information objectively, without prejudice.
Maximum focus when trading. The trader must provide favorable conditions for trading. Even before the auction, make sure that no one will disturb you. Turn off the phone, make sure you meet your own needs, let others know that this is your official working time - do everything possible so that nothing distracts you from shopping.
Keeping calm when making trading decisions It is not so easy for a trader to always stay calm, but it is absolutely necessary to survive in a competitive market. We all know that emotional trading often leads to losses. Example:
- A trader can open a pointless deal in an attempt to win back or "revenge" the market for previously lost losses.
- A trader who has the courage to win a number of winnings can also be at a disadvantage due to self-confidence.
Emotions can not only force you to make unwise trading decisions, but also overshadow the perception of useful information. Staying calm, focused and ready to act is what every professional trader should strive for. Achieving this state largely depends on how you feel about your trading results. Every trader must accept the fact that the losses incurred as a result of trading according to the rules of their own trading strategy do not pose any threat to him, but are only ordinary costs. It is necessary to constantly practice the ability to adequately respond to losing operations. Even if you are well aware that irritation in the event of losses has a destructive effect on your trade, during periods of subsidence in the trading account, you will somehow face uncontrolled emotional states. Understanding alone is not enough, so in any case, you need to constantly work on yourself to adequately respond to such situations.
Never play back or make decisions in a high emotional state, give yourself time to calm down, analyze the situation and only then return to work.
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