LEARN TO RELAX YOUR MIND
Keep Your Trading in Perspective - Look beyond your short-term goals and see the bigger, more successful picture!
In Forex trading, the bigger picture rules all decisions. When it comes to technical ability and applying the best trading strategies and risk management, trading psychology is most important!
It is not always easy to consider the bigger picture in dire trading moments, especially when pressure is involved. To achieve a sucessful trading mindset, rigorous mental work is required to stay disciplined and make the correct trading decisions.
Are you working on sharpening your big picture thinking strategy while trading? Let us delve into strategies to implement to become a big picture trader and trade successfully.
Be clear about what you expect from your portfolio- The clearer your goals, the smoother and more successful your trades will be.
Every Monday, build a plan – how do you see your week going? What risk limits are you working with? Be upfront with the amount of time you will spend behind the computer analysing, and be strict with your time! This will earn you more money in the long run.
Write your plan down and select two to three hours per day to dedicate to your trading in total, with the number of trades you allow yourself, the total risk that fits your plan, and only trade the opportunities that make sense within your specifications.
Once you have built a plan and understand your limitations to earn reasonable outcomes, you can start to work in a way in which you can see the big picture. With a big picture view, you can focus on the details of trading in a more structured way. The only leadership you have as a trader is yourself, so make sure you do enough prep work and do not jump in blindly.
Learn to relax - No matter how hectic trading can get, remember less is more and it is all in the preparation.
Like in any field, taking time away from a stressful environment to relax whichever way best suits you. Give your mind time to heal and rejuvenate after expanding with new experiences and knowledge. REST IS GROWTH.
Too many traders believe that “going harder generates more profit,” but this is not how you become the best trader and best version of yourself. The power that comes with taking a day off can vastly improve your ability to build on your long-term goals.
Another important aspect of your trading journey to focus on is embracing failure. You will find when learning to be a winning trader, that failure is something to embrace. Reimagining your current outlook on failure as a positive rather than a negative is extremely important.
Failing at something indicates many things. First, you tried and tested a method. Second, you have learned something new and can adapt your style to succeed in the future. Only through attempting and learning can you become a better and more profitable trader.
The bigger picture of a traders mindset
Now that you have the trading plan for detail trading vs the plan for the big picture, start flexing your big picture thinking muscles. In doing so, you are likely to improve your odds of success. And we have the data to back this claim – successful traders tend to think more broadly with long-term goals than the average traders by a solid 30-48%.
Forex Traders UK is passionate about educating traders about winning trading strategies. In addition to articles about trading mindsets, we also write about technical strategies. Subscribe to our newsletter to be informed about our newest blog posts.