Pulling The Trigger – Forex Trading Mindset
One of the interesting things about forex trading is how much you learn about human psychology. In the last few months since I started paper trading forex with Metatrader, first by myself then with an expert advisor, I have learned a lot about the way I think and react to my successes and failures in the financial markets.
“Pulling the trigger” is a phrase that traders use in regards to taking the action of placing a trade. Now when it comes to using an expert advisor or “forex robot” as they are called colloquially, the action of placing a trade is taken by the computer program. However, a far more consequential decision is the decision to purchase the live version of an EA and actually start live trading.
I myself have not yet taken that decision, and for a number of reasons I am glad I have waited to perfect my strategy before rushing out and letting a robot loose on my live account. The main reason is that, before I started I had no idea just how easy it was to make a rash decision like cranking up the lot size on my account without thinking about the consequences. On the other hand, waiting too long to get into the market can also be counterproductive. Time is money, and no more so than when you are forex trading. Compounding your trading profits takes months, and the sooner you start the sooner you can reap the benefits of your forex robot.
So I will wait until the graph below shows consistent upward progress for a few more months, and then commence live trading. There are 24 members who have taken up a free membership with Forex Goldmine since I joined their affiliate program and placed links on this blog, some of whom are presumably testing the free demo version of Robominer, so I hope if any of you are reading this post, that you would feel free to contact me or comment on this blog as I would be keen to know how your trading is going and when you go live, to share in your progress.
I know it could be a challenge for some to have a computer set up online 24/5 for trading. I myself never throw away an old PC while it is still working, so I just use an old one with a RAM upgrade which surprisingly works quite well with the Windows 7 Pre-release beta version installed on it, and it just sits in my garage trading forex for me while I am at work or asleep. With a wifi modem it’s pretty easy to have it online without affecting other computers in the house, and I’m sure one of these days it will pay its way! It may even pay for a full version of Windows 7 for itself before the beta version expires!
So, whoever pulls the trigger first, please post on this blog and we’ll see who hits the target. Perhaps not $20 million but even a real profit of $2000 or even $200 on a smaller account, should be achievable before the end of the year. Watch this space.
Hello
In my opinion good forex means good anticipation. The key for making profits, short or long term, is consistency.
A good Forex robot or signal program needs over 70-80% success rate and it has to be very easy to understand. For best results you need to follow the basic rules of trading or otherwise you end up with no money at all.
Big fluctuations can occur from time to time in the forex market and to be safe you need to learn how to spot them.
To find out more about how you can make real money in the Forex market follow my signature.
Too many people just blow this stuff off, and I think that their investing ability suffers as a result. There’s a major tendency to look for the elusive Holy Grail that the bulk of people end up sabotaging themselves. A nice reality check helps all traders to keep a sharp focus in a ruthless market.
Forex long term trading is challenging but can be rewarding!