Forex trader don't only have to do risk management. They also have to manage their minds and control their emotions and focus on the task at hand. They have to seriously think about each and every trade and then decide logically.
Those who stay cool in difficult situations are the ones who will make the money in the long term. There is nothing wrong with going with you gut feeling as long as it is YOUR FEELING. Being pulled along by the market is a whole different ball game.
I quite agree. And most importantly it is the control of emotions. I know someone who always fails and loses out of fear.
For sure, the proper mindset is important. Actually, this is the main thing distinguishing professional trader for the newbie. Proper trading mindset allows professional traders to benefit even from mistakes they made - they understand that mistakes allow them to improve thier performance when being analysed in details. It is impossible to avoid mistakes, but it is possible to use them in your favor. As it was mentioned before, emotions are extremely important too. In fact, many traders fail just because of the emotional trading. In other words, trader should pay attention to the following issues: - knowledge and education, - trading platform, - informational support (advanced newsfeeds), - risk- and money management, - trading mindset (motivation, attitude to risk). All these aspects are important eqally.
I find the best way not to get too attached to investments is to see them simply as boxes - buying, holding and selling boxes.
If you cant control your mind/emotions then maybe the hustle and bustle of the stock market is not for you. It can be physically but more mentally challenging. You have been warned
People tend to mix up gut feeling and emotion when trading. They are very very different - gut feeling is good, emotions are bad. Keep it cold and keep it business like.
