In the novel The Mysterious Island, by Jules Verne, five men escaped a civil war prison camp by hijacking a hot-air balloon. Very quickly, they realized that hot-air balloon is carrying them out over the ocean. As the hour passed they saw the horizon receding and realized that they were also losing altitude. Since they had no way of heating the air in the balloon, they began to throw some of the excess weight overboard. Shoes, coats and weapons were reluctantly discarded, yet they rejoice that balloon began to rise. Soon, they drew dangerously close to the waves again and began to toss their food overboard. Better to be alive and hungry! Yet a third time, the balloon began to descend and this time, one of the men suggested they tie together the ropes that connected the balloon to the basket in which they are riding, and then sit on the ropes and cut away the heavy basket. The very floor they had been standing on the fell away, and the balloon rose once again suddenly, they spotted land. With not a minute to spare, they live were spared, not because of any heroics, but because they had learned what they could live without. To be successful in forex market do away with all this:
1. Greed
The way to avoid being greedy with your trading is to find out why it’s so easy to be greedy with the markets. Greed stems from a belief that there is no enough and there will be no enough. The most reason people are greedy when trading forex is because they bring non-market factor(like how badly they need the money, what they need it for, can they afford to risk, etc.) and apply them to the forex market. It doesn’t really makes sense to do this because those non-market factor have nothing whatsoever to do with which direction the market is going. So to take those factor like I want to use this money to buy a car or I need this money to pay my bills. While those things may be true, they don’t have anything to do with which direction the market is heading to. So letting those things control your trading decisions makes you greedy, makes you want more than the market may be offering, and influences your into not acting in your own best interest. Being greedy will shorten your trading career faster than any other mistake you can make. Aviod it.
2. Stop looking for hundred percent accurate indicator.
There is Chinesse proverb that even monkey also fall from tree. There is no technique that will produce 100% profitable trades in forex. There is no single indicator that will make trading a breeze and making money an easy task. This is reality. All you need is define your trading system, set specific goal, the goal must be measurable, realistic and attainable. Meanwhile, a person with good self-discipline but a poor trading method will outperform a person with poor self-discipline but the best trading method currently available.
3. Excess indicator on your trading platform.
This will lead you into over-analying, procrastinating and hesitaty decision. I know many times traders have come into my office terribly depressed because they knew the market was going one way or another; however they failed to take position. When I ask them why did not take the position, there answers are always the same: they were waiting for there all indicators to comform the direction of the market(only two out of the excess indicators were present and they were waiting for the rest.) as a result they miss the trade setup or enter at wrong point. We don’t get paid in forex unless we take a position. Don’t over analyze the trade. Place the trade and manage the trade, if you are wrong, get out. When you over analyze and in hesitate, the net result of all is zero.
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