One of the hot topics revolves around the argument of how effective is mental training. Mental activities or even popular training, such as Neuro-Linguistic Programming (NLP), would really be useful in improving consistent trader performances.
Through our research we believe that, to be able to apply what was learnt practically through different trading psychology lessons, it all boils down to how effective are the education methods that engage areas of the brain which would enhance an optimal mental state for traders and then influence their beliefs, actions or behaviors.
A lot has been said about why patience and discipline are crucial ingredients in making traders successful and produce consistent results. But, again the question is in the how? How and what could a trader do to be more patient and disciplined? The key to achieving these two ingredients would be to first organize the market analysis process into sequential steps that would engage right brain and left brain activities as illustrated below:
This is where you need a mentor to guide you through a trade plan that consists of little steps that will take you through an organized process of analyzing the markets.
Trading revolves around a trader's beliefs, mental state and thinking strategies. This would entail trading to be 60% psychological, including why and how you trade or which trading methodology or system you will follow for your personal success. Your psychology when trading can have a huge impact on your desired results.
These are just a few of the traits that traders acquire, which can have the power of a gain or loss when trading forex. Marinating and of course obtaining an ideal forex trading mindset can be achieved through accepting a number of factors that will affect your experience. Managing to control your emotions, being organized and not making impulsive moves will put you one step ahead of the game.
Revolves around managing your emotions, beliefs system and physiology to enhance the successful accomplishment of a task.
Every task has an optimal mental state that will allow you to accomplish that task effortlessly. For example, to execute a trade you benefit from courage and total commitment. Fear, in contrast, is a big disadvantage as a mental state for executing trades.
Mental states are primarily what most people call discipline or emotional control. Examples include being impatient with the markets, being afraid of the markets or being too optimistic about the markets.
Controlling your mental state is just part of the answer, but when you see that you are the creator of your own results as a trader, then you have come a long way and can really make progress. One of the most effective ways in achieving an optimal mental state when trading is by acquiring the knowledge and skills in losing properly.
Involves the way in which we organize our actions in a sequence of manageable steps.
Beliefs are basic ways we filter out information, which then determine how we perceive the realities of the world.
“It is important to keep a clear and an open mind when trading”, we bet many have heard this saying but the question is HOW? The number one way is to collect sufficient and factual information about trading and the forex market before taking the plunge into real trading. This will be a crucial first step into structuring your beliefs system.
Beliefs are primarily unconscious, for example your expectation of someone or something that has occurred depends a lot on what you believe. We filter information from the world using our beliefs and it is an essential tool in forming our judgements, categorizations, meanings and comparisons. Ultimately, beliefs determine how we perceive reality–and our reality usually determines how we choose our actions.
When taking trading as an example, one of the beliefs that is most productive for good trading is the belief that you are totally accountable for your own results. By firstly adopting this belief, traders would then be able to be in the right mental state or frame of mind to learn from their mistakes. On the contrary, if traders end up blaming someone or something else like a trainer, broker, trading signals, indicators or even the forex market itself, then traders are most likely to repeat the same mistakes all over again. Taking responsibility is key, but it boils down to having access to accurate, relevant and unbiased information about a particular topic or subject to strengthen the belief.
Traders need to ‘own their problems’ and shoulder accountability for the outcomes produced. This will enable them to discover the realities of how their results come from some sort of mental state, which will then encourage them to do any one of the following:
If a trader for example, takes the time to contemplate on their beliefs either about Trading, the forex market, themselves, money or risks and writes them down, then they can establish a much better idea of being able to provide the answers for the following;