Working 24/5 at Forex market it is possible to be earning money for several weeks, and loose everything in just a few minutes. Absolutely everybody, from a beginner to a professional, has experienced this. Thus, every trader should understand, that risky factor always exists and you should be ready for anything. A constructive approach, attention and logically adjusted analysis will help you to find correct answers to your questions.

Below, 9 topics will be discussed in order to prevent the traders from losing their track.

Fact 1

Traders, who predominantly experience intraday and short-term trading, can be added to the group of unlucky fellows. But the general reason for all failures is not that they are under time restrictions, but the fact that they do not have a good training and a clear-cut scheme of actions during their work. The absence of knowledge and educational background at this type of trading does not forgive even momentary mistakes; any misstep can bring to the loss of the deposit sum. Moreover, such traders often do not have sufficient funds on their trading balance. More successful traders can be trading mid-term or long-term.

Conclusion:

From a statistical point of view, a mid-term and a long- term trade have a greater possibility of profit. The same can be told about the invested funds, a chance of staying at market wholly depends on the sum of the initial capital.

Fact 2

The traders, who have no luck, often spend much time on the analysis of where the market will be tomorrow, on the contrary, more successful traders decide on the actions under the current conditions, and according to these conclusions are building their strategy.

Conclusion:

If a trader can predict the reaction of the mass, luck will be on his side. An opportunity to increase the capital considerably grows, if a trader can react to irrational buying and selling of the majority by a logical plan of actions. Consequently, being a lucky analyst is more difficult than being a lucky trader. An analyst has to make a more difficult work, as he should forecast the movement of the market and recommend how to get maximum profit, while a successful trader just has to follow the market.

Fact 3

More lucky traders pay attention to the deals which brought loss and the ratio of the risk to the profit, while the failures concentrate on profitable operations.

Conclusion:

Paying attention to the risk is more important than to the profit or losses. The traders, who consider trading from a professional viewpoint, always take into account, how much they can gain and how much they cam lose.

Fact 4

As a rule, the traders, who cannot control their emotions, are impossible to be called lucky. Successful and more experienced traders analyze the market without emotions.

Conclusion:

The trader’s approach cannot be named neither well- grounded, nor logical, if the position opening and closing happens only on the basis of intuition. But complete ignore of emotions and feelings is also wrong. Sometimes, numerous stresses can bring to mental disorders; moreover, it is possible to lose general trading skills. The best way is to trace each emotion, and afterwards, check if there are still the reasons for this or that action.

Fact 5

All inexperienced traders are very concerned about their rightness, but the professionals accept emotions, though never let them overtake mind. Successive traders take notice not only of what can bring the profit, but also of what can prevent from it.

Conclusion:

It is very important always to be in course of events at the market, but one should also separate private life from trading. Big pressure causes psychological breakdown and physical fatigue. Professionals of trading always react fast to the current market events; it’s just a job for them, which brings yield.

Fact 6

Losing funds during the trade, the unsuccessful trader starts to buy new books or trading systems, starting to work according to their conception at once, but an experienced trader analyses what happened and corrects his methods in respect to the received data. A better trader does not start using a new system at once, but only when he realizes, that his old one deceives his expectations.

Conclusion:

Good traders always keep to their methods, usually using only a few trading strategies.

Fact 7

Traders, who have little experience of trading at market, sometimes try to copy the actions of the famous traders. Professionals at this time consider all strategies, including those of famous traders, but use the example only if it suits into their style of trading.

Conclusion:

The trader’s personality, his knowledge of the market and his personal trading system are much more important than the achievements of the great market speculators.

Fact 8

Often the traders with no trading experience at market do not notice many factors, which could bring them profit. The sum being in work defines the profit of every trader, which is realized by professionals. More money should come to Forex, than leave it, and this should be taken into account by every trader.

Conclusion:

All factors, which can influence the profit, should be taken into consideration during the trading.

Fact 9

Generally, all traders, who have just started working at Forex or who are constantly losing an opportunity to gain profit, take this too close to their hearts. While, more professional traders perceive it easily. The process of trading brings them pleasure, at the same time, they are taking it absolutely serious.

Conclusion:

Psychiatrists found out that the more serious a man is, the easier he is exposed to illnesses.

Sum up:

Successful traders as well as unlucky ones perceive trading at Forex as a kind of game.

If we compare trading to a game, a bowling for example, the beginning traders will understand, that strikes’ rate, which is achieved by professionals with no visible efforts, is a result of a long time spent outside the “big game”. Like in sport, trading accounts for a great number of inner and outer factors.

It is necessary to be serious about every conducted operation. The professional traders differ from novices in that the former follow a definite trading strategy; the latter take it as a game.

Added by Olga Vitkovskaya,
InstaForex Clients’ relationship manager