Psychology for success

Let’s start with the psychology. It’s strange but a lot of textbooks relate to technical analysis of market. To my mind this aspect takes not more than 5 per cent of success. The psychology (i.e. your mental composure) is much more important.

Thus I worked out 3 major points which help you to stay concentrated:

1. FOREX is a business, not a game. Majority of people (including me myself 5 years ago) mistakenly think of FOREX as of a casino. I suggest you forget that word while working on FOREX. It will help you patiently concentrate on important things. Go ahead and try to win quick money gambling and you understand what I mean. It is just not working that way.



2. Make up you own rules and follow them. It is your system, your strategy. It should include signals for opening and closing positions, money management, your work schedule and break schedule. Do not overwork, give yourself rest. What about psychology? It is comparatively easy to create bunch of rules but the thing is to have yourself follow them accurately.



3. Be thankful for every small success, even if it is only $1. But don’t get overexcited if the income is considerable, euphoria may cause the overestimation which lead to the lost of composure. Don’t panic if you failed, except it as an experience. Besides if you were following the money management rules when this happened it is alright. After each deal analyze both technicality and your emotional state.

By following these 3 steps and having lots of practice you will most likely get steadiness on Forex.

One more thing – you want to start with the small amount of money on the real account. Use demo-account only for acquiring knowledge of platform. This approach will train you emotionally. Using demo-account you can make good money, that makes you feel self-confident. But when you start working on the real basis it all disappears. It is caused by the lack of training. I will speak of this in one of the next posts.

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