How Trading Forex Teaches You About Yourself
Know Yourself to Learn Your Forex Trading Style
Interestingly, the best Forex traders had to learn who they were before becoming successful Forex traders. Most people don’t initially realize the psychological aspect of trading.
Trading Forex requires technical abilities when analyzing charts, but that’s not all that trading requires. When someone is trading they have to know who they are in order to understand what trading style works best for them.
Are you a Swing Trader or an Intraday Trader
First, let’s define swing trading. Wikipedia defines swing trading as “a speculative trading strategy in financial markets where a tradable asset is held for one or more days in an effort to profit from price changes or ‘swings’.”
Now, let’s define intraday trading which is “a form of speculation in securities in which a trader buys and sells a financial instrument within the same trading day, so that all positions are closed before the market closes for the trading day to avoid unmanageable risks and negative price gaps between one day’s close and the next day’s price at the open.”
How Trading Forex Teaches You About Yourself
After learning technical and fundamental analysis, every trader has to decide what trading style works for them. In the video we posted, Grant details his experience with trading and how holding trades for several days or weeks doesn’t suit his trading style.
Grant prefers intra-day or day trading because he doesn’t have the emotional capacity to withstand the ups and downs of holding trades longer than a day.
So, trading forex will teach you about yourself because it will help you determine how well you can deal with your emotions. Trading large sums of money is emotional and stressful. Even the best traders talk about how the emotional aspect is stressful.
Managing Emotions in Forex Trading
Some basic emotions that traders have to manage when trading Forex is stress, impatience, greed, fear, and overconfidence. When trading Forex, managing these emotions will be the key to your success.
It is important to stick to your trading strategy and be patient. Follow the rules that you have set forth that work with your style of trading and never be overconfident. While trading, you can be up big one minute, and before you know it, you’ve blown your account.
Managing your emotions will help you accomplish your trading goals. Traders who are in control of their emotions will make better trades.
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