Trading Psychology: How Disciplined can Trading Lengthen the Trading Career

Page 1

Trading Psychology: How Disciplined Trading Can Lengthen The Trading Career?

Trading is never a quick profit business. However, each year, a seemingly endless barrage of traders enter the industry only to falter after finding out that they were too impatient to execute the correct trades and hence, failed miserably. To succeed in forex trading in markets like Nepal, it takes meticulous planning and a disciplined approach. Success in the industry requires the skill and experience required to discern the good trade from the bad and the instinct to find out the bad trades


Reasons Why Uninformed Instinctive Trading Falters: 1. Traders can easily fall prey to deceptively rising markets. 2. Forex traders may not be able to discern between markets that have a growth trend and those that are moving towards a resistance zone. 3. Markets never change their behavior. While there may be periods where trends may rise with no end in sight, these are usually moments that are fleeting. Eventually, they return to their inherent behavior and will return to the starting point. 4. Markets do not pay out at the same time. Some markets may be successful in one chart while on a losing trend on the other. Unless traders learn to understand the difference between these charts and identifying the best one, the success of one’s trading account will be based on chance and may not be guaranteed. 5. Trades that post tremendous growth vertically may never have a sideways movement and the rise will not be forever. Eventually, the trend will reverse and when it does it inexperienced traders who invested in it without effective forex trading strategies may post losses. 6. To be successful one needs to pick a trade early. To hone this instinct, traders need to master their fundamentals. The most successful traders learn to pick up a trade early. These are some reasons why trading must be a planned and coordinated activity rather than being one based on instincts. Before taking up forex trading in Nepal, traders must learn to get their fundamentals right as this guarantees success in the long run. Traders can also collaborate with reputed online brokers like WesternFX to develop strong forex trading strategies and trade with discipline.


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.