In today’s article, I will tell you about the most important thing in my opinion in Forex trading, without which there is no chance of success. And finally, I will tell you what to do to have a good starting base to start a new adventure with forex trading. So let’s start the rock and roll.
The key factor to achieving success in Forex trading, in my opinion, the most important thing to trade effectively in every market is the right attitude and the proper mental preparation.
You will never be able to succeed without it. Never!!!
I have worked it out myself many years ago and believe me; it took me a long time before I realized that earning or losing in the market depends only on what is in my head.
This is the most important part of trading!!! Nothing is more important than that, I mean your mental attitude to the whole process called trading. No system, no stop loss, no take profit levels, no money management. The first and most important thing is a proper mental attitude.
By the way: do you know that you have a chimp inside you? Do you realize that?
We have a brain that contains a rational, creative, predictive and future-oriented brain; this is a logically thinking being called your inner self, but there is still a chimpanzee hidden in the deep corners of our brain.
The chimp is responsible for reacting to any threat and knows only two reactions: run away or attack.
From the other hand your chimp loves to play, loves doing nothing and isn’t creative at all. The chimp in our head is waiting for bananas and fruits to fall from the trees.
It is exactly as we wait for a better job to come from nowhere and doing nothing to find it or as we wait for a winning lottery ticket where the probability theory clearly tells us that you win once every fourteen million cases.
The chimp in our head is responsible for all basic instincts fear, greed, panic, euphoria, hope.
The behaviour of the crowd of chimps best can be seen on all markets.
Have you seen fear last days on the markets when the crowd run away because of the coronavirus threat ? That’s our chimp – the fear of unknown.
Have you seen new highs on December 2018 on bitcoin reaching the price of 25k despite warnings about the bubble? That’s our chimp – greed.
Do you know someone who bought a house right on the top of the bubble in 2008 despite the fact that the prices on the housing market have doubled or tripled? That’s our chimp – our greed and hope.
I purposely asked you about winning the lottery. Winning is based on hope. There is no hope in trading. Hope dies last, right after closing your trading account.
The key ability in the Forex market, if you want to succeed in this market, is to make your chimp fell asleep. There is no place for fear or greed in your trading. There is no place for gold rush or running away from the position. To bloody hope for a winning. Remember; hope dies last.
Do you remember Vestibule of Hell by Dante Allighieri? “Abandon all hope, ye who enter here.” Forex market is hell for these who hope. Keep it in mind.
Instead of a crazy chimp, your head should always be ruled by a cold, ruthless motherfucker, with a cold look of a cruel executioner, who is placing orders with no emotions, holding a position without any emotions and closing the position without any emotions.
Cold motherfucker who is acting like a robot. That’s the way you have to be. There is no other way to succeed on Forex. Otherwise you will be eaten by financial sharks playing on your monkey emotions your hope, greed, fear and so on.
How to achieve it?
First step. Learn it. There is a book by Prof. Steven Peters “The Chimp Paradox”. The link for the book you will find right below. Go there, get it and become a better trader, in one single day. Read this book and you will see the difference.
Another book is a Mindsets of a Master Stock Trader: Mastering the Inner Game of Trading. Same story. You will find the link below.