Our trading results impact us more than we can estimate. Our mind determines the nature of any outcome. In case of success, we get a rush of happiness in loss - a huge disappointment. Our reactions are pre-defined by our brain chemistry and habits, but there is a way to control them. All you need is just the right attitude.
It’s all about your mindset
Facing Forex trading, many people tend to perceive it in the wrong way. Some people treat it like their 9-to-5 job: you do the thing for the determined amount of time, and then you get paid. This approach won’t work when it comes to Forex. Neither will the mindset that Forex is gambling where the sheer amount of luck defines your wins and losses.
Forex is a different kind of job, where your effort/outcome ratio works differently.
Set your goals right
Your interpretation of results - and your reactions to them - depends heavily on the goals you wanted to reach. Before you start trading, think about what you want to achieve.
Many people think that Forex will help them earn a significant amount right after they start trading. That’s why unavoidable losses affect them on a much deeper level, making them hate trading sooner or later.
Try setting a learning goal for yourself first. Beginner or seasoned economics expert, you need some time to figure out how the market works on your own. It would be best to see which strategy suits you better, which assets and which trading instruments work the best for your needs. The ultimate goal is to understand the market better each day, eventually bringing you profit.
Repressing your emotions is not the best decision either. We are people, feelings are natural to us, and there is no healthy way to cheat the system. What you need to learn is to recognize your emotions and keep them at bay.
If you have a trading journal, it might be helpful if you start documenting the parameters of the deal and your emotional state before and after it. Feeling is easy but processing your emotions and defining them is a difficult task, but essential nonetheless.
Imagine a scenario: your deal resulted in a loss. You are most likely to feel a pang of regret. Let yourself experience it - you have every right to feel this way. Yet, after a while, ask yourself a few questions:
Why do I feel that way?
What do I need to do to change it in the future?
The answers might seem obvious, but take a second look at your emotional state. Are you angry? Then define the source of your anger. Is it the market? The broker? The conditions? What could you change about it? Are you sad? Maybe you are scared because you are afraid of losing your financial security?
Giving your emotion a name is crucial. Finding a source of your feelings will help you set better goals and avoid mistakes in future.
The way you see your results defines your reaction. Learn to observe them, study them, draw conclusions, and then work towards changing them and becoming a better, more productive person. After all, it’s all about the right attitude.