Welcome to the ditto educational series that will provide you with the skill you need to become a FOREX trader. Today we are talking about TRADING PSYCHOLOGY.
Who should watch this video?
This video is for those who make the same emotional mistake again, again and again, although working with a proven strategy. This series of videos helps you to alleviate the problem that you are facing with psychology.
In this video, we are going to talk about consistency.
If you want to be successful in any business not only in trading, then “Consistency is the Key to success.”
You name it!
Let’s take a businessperson who is selling any product that has demand in the market. He is said to be successful only if he keeps generating sales month-on-month, he can call himself that he is successful because he is consistent.
You take any Food ball player, Basketball player, Cricketer or any sportsmen for that matter. No one will remember if he hits a six in one or two games, if he keeps performing the same way in 50 games or so then he will be remembered as he proved that he is consistent in hitting a six in the same area not in one game but many sports.
So, a generic definition of success in any filed is consistent.
Let’s talk about how to be consistent in trading.
Trading is just like any other business which works on supply and demand. So, you need to understand the logic of sellers and buyers. Let’s not talk about the technical side of trading, but I need to address some points for being consistent.
The first one being the
- You need to have a proven strategy (Proven strategy is not like it should work all the time, but it should work most of the time). If you don’t have a proven strategy that is backtested, then this is the first thing you have to work on. Ensure that you are not directly implementing this strategy, which is taught by any mentor, guru, or your peers. Because it might work for them but do you know that this will work for you? You need to backtest this strategy so that you know at what circumstances it will work and in what circumstances it will not work. You need to believe this strategy in a way that anything conflicting this strategy is just noise.
“Believing in yourself is Important.”
Wait for the market to give you what you want.
- You have to remember that you should not trade when you are free or available to trade. You need to wait for your turn. You need the market to give you what you need that fits your plan/strategy. If not, that is not your opportunity, and you have to know that there are tons of opportunities for you.
“Let the trade go if it doesn’t fit with your strategy/plan. That is how you will be consistent because you are not in the game which you don’t know.”
Learning from your losses
- As I spoke earlier, the probability of your outcomes is uncertain, and also there is no 100%-win rate. That means you will incur losses. If you are not learning from your losses and contemplating it, you are not learning from your mistake, and there are high chances that you repeat the same mistake again and again, which affects your consistency.
There are some other rules that you have to set to be consistent, which will be explained in the next video. Stay tuned.
An extensive course on trading psychology
“Trading with Substance and Mindfulness”
Thank you for watching the video. This video is just an introduction to our psychological course, which we are about to roll out soon. If you enjoyed this video, please like and subscribe.