Ten Ways for Real Time Traders to Stay Focused Part II

Here are the remaining five ways in which a real time trader can remain focused:

Self Accountability: You should always remember that only you are responsible for the profits earned/losses incurred in the forex market. Profitable positions are always available in the market and so, market volatility or the government rules & regulations with respect to the market or the trading platform or technical & fundamental analysis tools should never be cursed for a loss incurred. As the problem is always on the trader side, you should analyze your trading strategy and behavior, as a professional trader trades not only using sound analysis tools but also an emotionally detached behavioral approach. As a trader in the forex market, wining or losing is not important, what is important is that you learn from your mistakes and never commit them again.

Objective Terminology: You should always use neutral words to describe trades and market position. This will help you not send any strong signals to your subconscious mind and keep yourself detached from trades. For Example: You should always use “Expense” in place of “Loss” and “Income” in place of “Profit.” This approach, if adopted, underlines the process of learning about trading strategies and self behavior and the overall forex market.

Limiting Game: You should always put a limit on your trading hours and trading positions. To be a successful trader, you need not trade 40 hours a week (8 Hours per Day * 5 Trading Days) and need not to change your trading positions too frequently. The first two hours after the market opening and the last half an hour before the close are described as the best trading times as they encounter real buying/selling, creating several profitable market positions. The rule of trading a maximum of three trades per day help you limit losses by putting a cap on the number of trades when each trade is aimed to recover the losses incurred from previous trades.

Primary Objective of the Forex Trading: The only aim of trading should be to earn income from it. If trading symbolizes excitement, adrenaline rush, “living on the edge,” and an escape from the reality for you, then you are doomed for failure as this makes you an emotional trader who is a misfit in the objective forex market. You are a successful professional trader if you can keep your emotions at bay while trading and act objectively, practically and mechanically.

Trader’s Diary: Traders trade on real time market information to book profits. But a trader’s diary is the real time market tool that leads to enhanced performance. As mentioned earlier, you are responsible for earning profits / incurring losses in the forex market and so, maintaining a self-analysis diary with respect to self behavior and trading patterns of entering a position, holding on and closing a position are critical for trading success.