The Professional Forex Trading Course – Lesson 8 - Psychology - Part 3

COMMON EMOTIONAL MISTAKES in TRADING

Losing Traders..........

1.Rush into trades after experiencing a few losses in order to win the money back quickly.

2.Fear taking the next valid trade after a series of losses.

3.Stay in a losing trade 'hoping' that things will turn around.

4.Focus on short term results & lose their perspective.

5.Fail to stick to a consistent percentage risk per trade (R%).

6.Constantly changing trading system / strategies after experiencing short term losses.

7.Focusing on the account balance instead of following the system.

8.Get emotionally affected by losses - fear, stress & loss in confidence.

9.Blame and find external reasons for their losses.

10.Desire to 'take revenge' on a stock or the market after experiencing a loss.

11.Trade with methods that do not suit their personality. Too often, people will hear about another's success and, whether out of envy or a lack of self-confidence, they feel compelled to copy that person.

HABITS OF SUCCESSFUL TRADERS

1.Always take action when there is a valid, high probability trade setup or signal. They do not let their fear control their decisions and interfere with their trading.

2.Take responsibility, learn from mistakes and move on. They do not dwell on setbacks.

3.Expect and accept losses as part of the trading game.

4.Focus on following the trading system and not the immediate account equity

5.Think statistically and keep a long term perspective.

6.Focus on being consistent. Consistently follow pre-determined entry and exit rules.

7.Be patient. Wait only for high probability opportunities.