Forex Trading And Impulsiveness Are Not A Good Pair
Checking impatiently Twitter for #forextrading updates, looking for last-minute trades, hoping for the big move; forex traders will agree that trading comes with numerous unknowns and insecurities, which can lead to hasty moves.
There’s no room for impatience and impulsiveness in forex trading, though. Quite the opposite: it’s CONSISTENCY that can help you become a successful forex trader.
Keep on reading to learn more about impulsiveness, consistency, and forex trading.
Also, do not hesitate to sign up for our free online course to master the art of forex trading!
Why Impulsiveness in Forex Trading Can Be Destructive
Forex trading is a complex behavior; so is impulsiveness. Interestingly enough, researchers claim that impulsiveness is a holdover of our hunting-gathering past, which is exactly why many people still find it hard to resist immediate rewards.
While impulsivity can be a powerful artistic force, acting on a whim can only harm forex traders.“Impulsiveness can be charming but deliberation can have an appeal, as well” as novelist Sarah Dessen once said. And we have to agree that well-designed forex trading plans can be alluring.
That said, it’s not a secret that the forex market is volatile and fierce, which can force traders to make impulsive decisions. How many times, for example, have you been tempted to hold a trade out of fear of losing out on pips!
Due to different price movements and sudden changes, forex traders may forget about their goals and let extreme emotions and greed guide their entries. To provide an example, due to fear of losing money, a forex trader may start doubting their initial decisions and take a quick entry or exit, losing control of their whole trading strategy.
Such impulsive decisions can be costly. Forex trading shouldn’t be based on emotions, greed, or revenge. We all can think of a time when our impulsive decisions made us regretful, right?
To master the art of forex trading, you should find a balance between your impulsiveness and rationality and establish a consistent trading strategy.
Consistent Trading Is The Key To Success In Forex, Not Impulsiveness
To find a consistent forex trading strategy, though, you have to understand why consistent trading is the key to success in forex. Many experienced forex traders will agree that consistent trading is highly profitable.
But what is consistency exactly? One’s consistent behaviours are defined as their tendency to behave in a way that mirrors their past actions. Research shows that consistency is also of great evolutionary importance; consistency helps individuals socialise and reduce their cognitive overload.
Forex trading is no exception - you have to survive and thrive in the industry! Following trading rules is crucial to tame today’s volatile market. Having established rules will help you create good trading habits, a profitable forex trading strategy, and an excellent trading style.
On top of that, forex traders with consistent trading strategies feel more positive about themselves, even when their decisions turn out to be erroneous. It’s not a secret that high self-esteem can help forex traders make successful moves.
How to Ditch Your Impulsiveness and Establish Consistent Trading Strategies
As stated above, even though impulsiveness is of evolutionary importance, there’s no room for impulsive decisions in forex trading. One should simply find a working strategy and stick to it.
From risky scalping strategies to keeping a trading journal, there are many forex trading strategies that can help both forex trading experts and beginners. No matter what forex trading strategy you choose, the most important factor to succeed is to stick to your decisions.
As the world of forex trading is a complex mixture of volatility, risk management, and psychology, consistent moves play a crucial role in trading!
As a matter of fact, success in forex trading is not about big moves but being consistently successful over a long period of time.
Impulsiveness vs. Consistency: It’s Time to Redefine Success in Forex Trading
To succeed in trading, impulsive traders should learn to be consistent. But how do we define success in forex trading?
Okay, there’s no doubt that making millions and a name for yourself is considered a success. Just look at some of the most famous day traders and their trading secrets! Yet, forex traders should redefine the way they view triumph.
Believe it or not, forex traders should realise that losing and winning are two sides of the same coin. Try to increase your risk tolerance and be prepared to lose before you win. To be successful, you shouldn’t fear the changing market at all.
Simply stick to your plans and never ignore your strategy about entering and exiting a trade! Here you can learn more about how to use a forex entry and exit strategy.
Don’t stop telling yourself that success is not only your profit but your ability to follow your own trading rules.
Breaking Bad Trading Habits to Learn How to Trade Forex Consistently
Ditching impulsiveness, learning consistency… That’s easier said than done. We all know that breaking bad trading habits can be hard. Hard but not impossible!
Here are some practical steps that can help you establish good trading habits:
- Invest enough time in learning the basics of forex trading. Beginners in forex trading should be particularly patient and realistic.
- Whether you choose to use charts to track forex trading fundamentals or employ technical analysis, make sure you are adaptive and consistent all at the same time.
- Think critically to understand the market and its complexities, but do not add too many indicators on your chart to avoid falling victim to analysis paralysis.
- Consider using virtual environments and feedback to improve your performance. With time you’ll learn how to find your forex trading style and follow it.
- Keep a trading journal to establish a profitable strategy and analyse your forex trading style on a regular basis.
- Do not hesitate to follow your strategy, even when the odds are against you. To win in forex trading, one has to learn to lose.
- Learn to adapt to the changing market; you might have to reevaluate your strategies if you start losing money consistently.
Perhaps the most important factor to break bad trading habits and prepare for forex trading is to change your mindset:
- Learn to control your emotions and make sure you are in the right state of mind to trade. Do not forget that personal problems and unhealthy living may affect your consistent strategies and reduce your probability of success.
- Do not reinforce bad habits; for example, do not congratulate yourself for a profitable trade based on an impulsive move.
- Also, never hold on a trade that has moved beyond your stop-loss level. Okay, you may see it turn around, but in this scenario, your profit will be a result of pure luck. This profit will only lead to reinforcement of bad habits.
- Do not rely on luck in forex trading. After all, forex trading is not gambling.
- Reward your discipline and keep telling yourself that a trade based on consistency is successful - even when your moves do not result in profits. This approach to trading will help you establish internal discipline and consistent trading rules.
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- Impulsiveness is of evolutionary and social importance, according to research.
- While spontaneity can benefit art and creativity, there’s no room for impulsiveness in forex trading.
- Impulsive decisions, good luck superstitions, and strong emotions can only lead to regrets and huge financial losses.
- Forex traders should learn to be consistent in order to be successful.
- We should note that consistency can be defined as a trader’s ability to follow their own strategy and goals, even when the odds are against them.
- Forex traders should break their bad trading habits and learn to be disciplined.
- Beginners should be extremely patient and willing to learn the basics of forex trading.
- Simple practical steps and healthy living can also help you change your mindset and become a pro in forex trading.
- Most of all, forex traders should learn to view success not according to whether they’ve made money but whether they followed their own trading strategy.
- Staying true to yourself can be your biggest win in the constantly changing world of forex trading.
To sum up, impulsiveness and forex trading are not a good pair. After all, it’s better for forex trading to be a boring success story instead of disastrous fun.
It’s consistent trading that can help you become a successful forex trader over time. Consistent trading routines will also help you feel more confident about yourself. Staying true to yourself is the most profitable move you can ever make!
To learn more about consistency and forex trading, explore our website and sign up for our online forex trading course to become a pro in forex trading.
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