I am not going to focus on the technical aspect of trading in this article. I think that too many people focus on the mechanics of trading and not on the mental side. It is my experience and belief that the mental side of trading is where most people need work. Sure new traders don't use a proper trading strategy but they also don't know how to think about the business of trading. They have faulty beliefs that will keep them in a state where they are losing money. Lets fix their head then their trading.
So what do I mean by lets focus on the mental side of trading? What I mean is that trading for many involves too many emotions. These emotions are would causes trader to make bad decisions in Forex. The more bad decision you make, the more money you will lose as a trader. It is my goal to teach traders to think about the game and how to think about each trade. By changing their internal representation of what good trading is first, then we can easily teach them winning trading system that will make them profitable and that will keep them in the black.
So what is good trading and what is bad trading? Most people who find themselves wanting to be a trader do so because they want money NOW. They don't want to wait the same amount of time that it takes investors to earn money. They want daily, weekly and monthly income from trading. There is nothing wrong with that and I share the same goals. Where I differ from the average trader is that I know that you cannot remove patience from the business of trading. It doesn't matter if you are day trading or investing.
Not only do these traders want income now, they also want to always be trading. They love the action of trading. My job is to replace their love of trading with the love of making money. Enjoy being profitable more than you love putting on trades. If they could learn this one thing they would lose less money. I also have to teach them that every trade has to be planned ahead of time. I don't want them making any gut decisions. The big banks use automated trading systems ran by super computers because they know how human emotions are not subjective.
If there is anything to take away from this article it is, focus more on how you think about trading. Do not allow Forex trading to become a game or a source of entertainment. Think of each trade you make as a major business decision that should be well planned and researched ahead of time. What if you are day trading? Of course in day trading your decision have to be made fast but your system will already have things such as lot size, entry point and exiting solves before you sit in front of the computer.