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Psychology Trading
Written by Martin Grippen. Visit also my Google Plus site ,Facebook site. and my blog about Forex.
Traders in the Forex market have to accept the market condition; they cannot force the market in a particular direction as the market is determined by demand and supply. A plan or a strategy is needed to have success. Even with a plan the traders cannot be sure they will succeed to earn profits. They have to follow the plan and trust the plan is the right plan. If they have doubts they will miss the opportunities in the market.
An example; how the trader doubts his rules and misses the trading opportunities in the market
An example could be a strategy including the Bollinger bands as the primary indicator and the stochastic as the secondary indicator. The strategy is to enter a trade if the price line crosses the lower standard deviation, the currency pair is oversold and the candlesticks turn green. If the trader doubts the rules in the strategy he will wait and watch the price development instead of entering the trade.
The example illustrates how the trader doubts his rules and misses the trading opportunities in the market. The trader has to change his believe structure and see himself as a good trader with self-discipline to enter a trade when the rules for entering a trade is present.
Visualization technique; convince the trader to enter the trade when the rules for entering a trade are present
Through visualization is it possible to change the trader believes structure and convinces him that he is a good trader with self-discipline to enter a trade when the rules for entering a trade is present. The purpose is to change his self-image; a picture all human beings have of themselves in their mind. It is a picture that controls our behavior in life matters and it is built on experiences and beliefs in life.
The visualization technique is to see the trade through a theater play in your mind; from the entry point where the trader enters the trade to the exit point where the trader withdraw from the trade. The picture of the play has to be as detailed as possible as it is easier to reach a goal if the picture of the goal is clear.
Extra info about visualization
I have written some articles about visualization in a bit deeper detail than this article. The articles are “How Visualization Techniques Can Improve Skills To Enter A Trade” is the visualization technique and “How to improve your Forex trading with visualization techniques”.
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