When you are trading in Forex, you will often find people who are mentally unstable. Do not think of them as mad or crazy because they are just people who have lost their investment. It is hard for the people to cope with the madness and it is natural for them to go crazy. If you look at the volatility, you will find that most people lose money. Though the trends are always changing, placing your trades with the right trend is always a challenge that is hard to overcome. This article will tell you the factors that can push traders to a mentally unstable state and how to overcome this state.
The power of a stable mind
Without having a stable mindset no one can become a successful trader. Some of you might think you can get away with low-quality trades, but there is always a price to be paid for making a mistake. You can’t make any mistake without losing money. So try to develop a stable mindset before you consider trading as your full-time profession. You might get confused after losing a few trades and blame the market. This is absolutely normal for the starters. But if you assess the market conditions, soon you will realize the market was right and it’s your fault for losing the money.
The new traders don’t even know what is spread betting. They just fund their trading account and start executing trades with big lots. But things are not so easy in the retail trading industry. First of all, train your mind to embrace the losing trades. Losing money is nothing but knowing the industry of spread trading. Think twice before you bet in this market. Never trade against the market trend as it will significantly increase your risk factors. Take all the time you need, but stay with the market trend.
Consecutive loss can push you into madness
The first factor that can contribute to making you crazy is the continuous loss. It may seem very common for the professional because they have passed this stage. The novice people have only started their career and they are not mentally prepared to face these losses. As a result, their mental strength gets broken and they are devastated. They place trades and they lose more money and they lose their peace of mind. Learn how to cope with your loss and plan your strategy that you can afford the losses. If the loses are too much for you, you should revise your plan and take a break. A small break can bring back your charming talent back to life.
Pressure and expectation of a good result
Your good performance can also create pressure over yourself. When you are winning at a stretch, you begin to increase your expectation of the return. It creates pressure and also the expectation of the good result is another pressure that is always reminding you to make money. These factors can make you insane and you lose your mind. Traders are advised to take a break after winning because it calms their mind and the hormone gets stable. If you do not make a profit but you are expecting some good result from yourself, you need to stop it. Make yourself prepare and practice in demo accounts.
Separate yourself from trading for the time being
It is said that time is the best medicine. Whether you agree or not, time can indeed make you forget what happened in the past. People have bad experiences and they suffer from various pressures. Just because you are a Forex trader and you trade from your home does not mean you cannot take a break. Separate yourself from all these analyses and works and charts and go on a vacation. You will feel alive and your performance will increase when you return. Your mindset cannot focus fully on the goal when you have a disturbed mind.