Internal hurdles on the road to successful forex trading
Some hurdles to successful forex trading are internal
Many individuals who took up forex trading courses did not achieve the trading success they were expecting. Some of them externalise the failure and blamed it on the course provider and trainer. Although it is true that trading courses could not be personalised according to the learning needs of each individual, learners play a more important part than they realise.
‘Mind’ is an internal hurdle
Successful trading stands on three legs:
- Trading Method
- Money management
- Mind (trading psychology or mindset)
Forex trading courses can do a good job to impart trading method and money management but ‘Mind’ depends on the individual. Let’s look at the picture below.
In a traffic system such as this, there are clear traffic rules that tell people what to do and what not to do. In fact authorities provide infrastructure (such as the overhead bridge at top of picture and escalators on both ends to go up the bridge) that provides convenience and safety to pedestrians and road users. However there are still many who choose to do it their own way for reasons that we can only speculate.
The best trading methods and money management techniques can only work when they are applied in prescribed manner. But your ‘Mind’ tells you what you do.
‘Mind’ hurdles affect many little things that add up in a big way to trading performance. Some of them are:
- Jumping the gun when triggering orders
- Sitting on losses for too long
- Taking profits too quickly
- Shifting plans mid-way in a trade
In other words impulsiveness, non-conscientiousness, risk aversion.
Determination is the final key to successful forex trading
There is good news however. Propensity to jaywalk uh-hmm break rules is not cast in stone. If you have the determination to succeed, a conducive learning environment with many like-minded people and equally determined trainer can help you overcome your worst habits.