From our youth, we’re encouraged to chase success. From making good grades to performing well in sports, we’re usually influenced to do our best in every single we try to do. While one might think that aiming for success is the only way to go, the constant pressure to succeed can actually stress us out and make us anxious. The better you perform; the more people will expect from you.
For example, if you’re an athlete that just beat a world record when running a race, nobody is going to be impressed if your future performances are less than the best. This problem can have a ripple effect on traders as well, as they might find themselves performing well but feel apprehensive to continue trading because they don’t know if they can keep it up. After all, there is no way to avoid losses altogether in the market, which causes traders to become anxious. Anxiety then causes these traders to think twice about entering trades, even if the evidence supports it, and they might find themselves regretting the decision to sit out later on when those trades go on to be winners. If this problem sounds familiar, read on to find ways to cope.
Don’t Focus on Losses – Instead, Trust in Your Process
When it comes to gauging success in the forex market, many traders think of monetary gains as the overall decider of how well they’re doing. Instead, you should be more focused on following your trading plan without freaking out over losses. The most successful forex traders will tell you that losses are an inevitable part of trading and that you’ll never make it far if you beat yourself up over every single one. If you do tend to focus on your losses, you’re more likely to make huge bets to overcompensate or to avoid entering trades thanks to the hit your confidence will take. When you lose money, just keep the “water off a turtle’s back” mindset and stay confident.
Adapt to the Market
There will be times when your plan just doesn’t work well, for example, in a ranging market. In times like these, you may need to adapt your trading plan or strategy to fit with changing market behavior. Some traders have a hard time doing this because they want to be right so badly, so they continue to use a plan that doesn’t fit the market, while those that adapt find that they can make money in different kinds of markets. Don’t be too stubborn to change things when you need to or sit out if you know that the market isn’t going to be doing you any favors for the time being.
Make Sure Your Goals are Realistic
What kind of forex goals have you set for yourself? Some traders might say something along the lines of “make a million dollars” or “get rich quick”, but these kinds of goals only set you up for failure. Your goals are a model of your expectations. If you expect too much, you will only set yourself up for disappointment when you can’t reach your self-imposed quotas. It’s okay to set short-term and long-term goals, just try not to put an exact dollar figure on those goals since it is difficult to predict how much money you’ll make. Your brain will thank you for the serotonin reward when you meet small goals and you can treat yourself whenever you reach a bigger goal that took more work. Also, remember that goals leaning towards self-improvement will impact your profits in a big way. If you become a better trader by learning healthy trading habits, spend more time researching, and find ways to stay disciplined, the money will follow.