Secrets of profitable Forex trading

 

Beginners usually tend to overestimate the competence of masters of their craft, who have reached serious heights in a particular field of activity. This also applies to the Forex currency market. Often young inexperienced traders, who merged 1-2 of their first deposits, are disappointed in Forex and claim in the mistaken opinion that, they say, to make money in the foreign exchange market can only know some special secrets of profitable trading on Forex, inaccessible to "mere mortals".

 

In fact, there are no secrets of profitable trading on Forex. Instead, there are several recommendations, fulfilling which you are likely to become a successful trader (such recommendations you can find, for example, in the article: We succeed in the Forex market). However, 90% of newcomers are unable to follow these recommendations. The reason for this lies in the work of the human brain.

 

The fact is that in the course of evolution, man has acquired certain qualities that help him to survive in the natural conditions in which mankind developed. These qualities are really irreplaceable if you are engaged in hunting, gathering, engaged in battles with wild animals, reflect attacks of representatives of hostile tribes, well, or at least just do some monotonous physical work. However, these same qualities can cause you tremendous harm if you play poker, trade on the stock exchange, are an investor, etc.

 

Let's take a simple example. Don't you think it's obvious that the more you work, the more you can make money? If you dig holes or put bricks and get paid depending on the production, then this is indeed the case. However, if you are trading on Forex, in the vast majority of cases, the situation is the exact opposite. The more trades you make, the more you lose on spreads and the more likely you are to do stupid things by deviating from your trading strategy.

 

Unfortunately, when we see that a loss has formed on our trading account, our psychology (which most of the time has evolved in the conditions of the primitive-community system) tells us that to "win back" this loss, we need to act more actively. Moreover, the human brain is designed in such a way that we do not just have an idea in our head; we need to make deals, often when we shouldn't have done so at all. One of the main secrets of profitable forex trading is just to know this property of the psyche and to contrast it with internal self-discipline.

 

Secrets of profitable Forex trading
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Self-discipline is not so simple either. It is produced as a result of regular self-in-force activities that require strong physical or intellectual costs and at the same time, do not bring immediate rewards. A classic example is sports. It interferes with the development of self-discipline such a well-known human quality as laziness. On this phenomenon, again, let's turn to history.

 

For most of human history, food has been scarcity, which is necessary to replenish energy costs. Thus, wasting energy "wasted" (i.e. not receiving rewards for it) was an unaffordable luxury. Hence the feeling of laziness, which on a subconscious level, keeps a person from "extra" work.

 

In addition to the fact that laziness interferes with self-discipline directly when doing trade, it will also prevent you from systematically giving a sufficient amount of time and effort to improve your financial literacy. Therefore, all beginners (and not only novices) stock speculators, we strongly recommend to visit the gym or engage in any kind of sport that requires serious physical activity and self-motivation. This is how self-discipline is developed, which may be able to help you overcome the emotional "temptations" arising in the process of stock trading.

To take under rational control gambling and other harmful emotions (and in the process of stock trading, almost all emotions are harmful) - it means already 80% per cent to learn to trade on Forex profitably. However, the secret that no one knows is how exactly this can be done. Gym and self-discipline will really help you in this matter, but to completely get rid of the emotional influence in the process of stock trading - it is not possible for even the greatest traders.

 

In general, the basic secret of profitable Forex trading, formulated very briefly, is to move the control centre of one's behaviour from the emotional sphere to the rational one.

P.S. And, of course, we will once again recommend our favourite brokers to you. If you want to trade profitably on Forex - open a trading account with Alpari or Exness! :)

 

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