Train Your Brain
The most important dimension of Forex trading is personal attitude. The mindset you bring to your trading enterprise will either make it a successful and profitable venture or a frustrating failure. So how does one approach the foreign currency markets with the most effective frame of mind?
Start with the basics. Before even considering the traits of a successful Forex trader, such as emotional discipline, and a mature well balanced attitude, there are a few very simple human factors which contribute to that highly sought stable, disciplined state of mind.
When trading, one must be sharp and well rested, so it should be a given that one must be well rested and fresh when entering the trading environment. Get a good night’s sleep. It shouldn’t be necessary to touch on these micro basics, but human nature is such that traders often convince themselves that now is as good a time as any to place a trade, even if the “now” referred to follows on hours of fatiguing activity, especially of the mental variety. A sharp mind and clarity of thought are products of adequate rest, and are necessary to success in Forex trading.
Another important factor is simple nutrition. A human brain depends the nutrients absorbed into the body from food to work optimally. Just as a car operates and is propelled by the fuel in its tank, so does the human brain. Feed your brain nutritious foods as opposed to junk foods such as sweets and potato chips which merely turn to sugar which actually impairs brain function and human reflexes. Those experienced in Forex trading will understand how crucial mental reflex can be to the trade environment. Stay sharp.
Logically, it follows that too much alcohol will rob one of that clarity of thought so necessary to analyzing the factors which shape the trades one enters. Just as it would be irresponsible to get behind the wheel of a car after drinking alcohol, it is equally rash to attempt to operate the machinery of a Forex trade. Clear and unemotional thinking is the product of a drug free mind.
Avoid trading, as well, after periods of high anxiety, domestic disputes, or other periods of disquiet when one’s mind set is agitated and restless. These conditions are a recipe for disaster, as emotionality is the enemy of the disciplined, mature, stable attitude which facilitates profitable, successful trading.
With this finely tuned instrument you posses, the human brain, comes responsibility, which may well be the key to long term, consistent success. The trader who understands that assuming full responsibility for the nature of his personal trading approach is the one with the edge. Those who depend on the mindless robots or systems which claim to offer incalculable riches usually find themselves as uneducated and unprepared for Forex trading after purchasing the system or robot as they were before it failed them; and they do inevitably fail.
Train your brain to achieve positive results in the Forex markets. Learn what moves the markets, what forces are at work in society, politics, the global economy. Understand the technical indicators you choose to employ. Above all, remain in control of your emotions and trade sensibly. Be an educated and disciplined trader and allow your attitude to drive you to success.
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17 September, 2009 10:35
Lorene wrote: