FxMAC Successful Forex Trading Reviews – Lesson 3: Understanding stress and feelings involved
In this section we will try to analyse the difference between operating a real account and practice with a demo account. It is a common pattern of anyone who start in this world think that because they easily earn money in an account demo will do the same in a real account.
Many people think that there can be no difference between a demo account and a real account.
It is the same as, playing poker with or without money, the psychological component is everything. When a new entrant puts his first order in his broker it is most likely that doubts arise even of his name. These doubts what they do is load the individual of stress that causes you not to make adequate decisions.
A person when he is nervous does not think clearly and cannot be objective before her actions. What we will try to make the reader see is how it is possible to make stress an ally of our operations. The basis of this practice is based on putting all the means to that neither a loss nor a profit makes us move an eyebrow.
Stress makes the mind and body move and if you know how to handle it, that can facilitate performance.
Our impressions about situations make that stress that moved us with quickly become a situation of vital distress now. We must accept that the losses in this sector are inherent to the activity, and with more reason if they use stops as in many cases.
You must accept as in the Ski that, one is going to fall and not only once but somehow many per day. When one has already understood that one has to fall, to learn from your mistakes will not bother you to fall.
Keep in mind that most people who enter the market with months of activity believes that they can beat the market without problems and do not notice the size of the positions or the distance of the stop, if you put it. If there is not a minimum of control over capital, positions and stops we can do little in trading.
What is meant to be understood is that, if we operate with a head and with knowledge that feeling of stress will help you to be more focused and otherwise the only thing you will feel will be anguish and frustration. It’s about having control of your operative to be able to survive in this world.
Think that trading is how your life must be prepared for all events whether bad or good, so you can act and not block one of the keys is to look at each and every one of the things that you do. That’s, monitor the moment of entry to the market, the asset that we operate, the point of entry, the volume of the position, the stop and the exit point. If we have had in account all these factors we will have at least the peace of mind that if things they go wrong, we must learn what has failed to improve our performance.
You have to have as in life a personal control over your actions and when it goes spending time and doing things well then it is easier to polish the mistakes and those feelings of anguish.
As soon as an apprentice is operating, he will begin to see the mistakes he makes and one of the biggest mistakes are the overtrading that will be dealt with later. What does he want say with this? The truth, very simple, that you enter a losing dynamic and you think that the more you operate the faster you can recover. The ratio in this case is Inverse the more you operate, the more you lose.
There are many operators who think that if they average the positions in a moment
given start to win, that’s true if, you have unlimited capital. That method is followed by many operators with money and is called Martingale method, which is used in casinos. Nothing is further from reality here, what should be to do is to increase the positions only when you are in positive territory, not in the Wrong Way. For this reason, it will cost you more time to recover your initial capital if is that he has two fingers in front and does not want to end his account.
Therefore, when the dynamics of overtrading enter, what the operator is to stop operating, leave the table to avoid temptation and leave the market a couple of sessions so that calm returns to its normal state.
It is very common among the operators with whom I have spoken to say that always they have read that, you have to ruin yourself three times in order to start winning. This is true, but of course it differs a lot that a trader has lost his account three times with all the consequences and having studied the one who has lost by have been playing with the platform without knowledge or cause.
In this world only survives who has the tenacity to understand that beat the market is like getting an opposition. It’s not that we want to eliminate the incentive of financial independence but only that see the reality of trading, a hard world without mercy.
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