Trading Is a Mind Game

Some of the greatest philosophers, priests, scientists and sportsman have said that winning is not an art, it all in the mind! So if you are planning to invest in Forex trading then you need to be mentally prepared. It is one of the best mind games that you will ever get to play. The first thing to do is change your mindset. Instead of thinking like any other normal person, you need to start thinking like a speculator, like a Forex trader. There many examples of Forex traders with experience and capability waste their career in the most unimaginable manner. This happens when they waste most of their time trying to perfect their knowledge of analyzing and reading Forex trading charts etc. As a result 95% of the traders have lost in the long run.

Anyone with an average intelligence can understand how the Forex trading market works although it might take a few years of following the market. But that’s about it! It doesn’t take a great IQ or knowledge to beat the odds and earn a profit in a Forex trading. The most important thing is the decision that you make. The decision making process maybe long and there might be some planning behind it but sometimes traders seem to take too long to take a decision and often that ends up being a wrong decision. This is one of the most important things behind success or failure. Some traders make quick decisions but are not able to stick by them or do a follow up and as a result they end up being on the losing side.

The reason why people avoid making a decision is because it’s painful and traders often have a ready assumption that their decision might not be the right one. So basically, the Forex trading market is playing with their mind. But they are not able to understand that if they can have some confidence in what they are doing, they will be able to sustain the pressure. There are many traders who shy away from making even short-term decisions. The pain being talked about has nothing to do with actual losses. It is from the fact that the traders are speculating already about future losses and feeling helpless that they don’t know what is going to happen tomorrow. At the end of the day everything depends on the trader’s ability to take a decision in spite of knowing that there is no guarantee to the Forex markets movement and taking a right decision. The Forex market is volatile and ups and downs are going to be there always. This is one fact every trader needs to live with. Keeping in mind the volatility, the Forex trader has to keep cool and be disciplined. It is like mentally preparing yourself in advance for what lays ahead so that you will not be caught off guard. The same mind game that most generals’ use in a war is what Forex trading offers.