
Part of Omicron Forex training and the Omicron Forex Trading Manual is the subject of
Trading Psychology. This emphasises the need to have a stable, realistic and
positive mental attitude in your Forex activities.
One of the most important things to
understand in this context is that you can only take out of the market
what the market will make available. This can best be illustrated by imagining
an extreme case, that of where there is no activity at all - price remains the
same at all times and the charts show a straight, horizontal line. If such a
thing were to happen there would be no opportunity to make profits, period.
It is also reasonable to suggest that
there are situations where the price action, although not completely stopped,
is very low. So low, in fact, that trading opportunities are of such poor
quality that they might as well not exist. Because in addition to making small
moves, such low volatility also makes the market direction unreliable.
When these conditions are present, there
is nothing, but nothing, that the individual trader can do to change them. All
he or she can do is wait.
So it is a big mistake to beat yourself
up for finding trading difficult on a low volatility day, which often, but by
no means always, turns out to be a Monday.
What you must do is train yourself to be
able to see such days for what they are: part and parcel of the trading
environment, just like losses from time to time.
I too teach trading psychology along with methodology, risk and technical analysis.
ReplyDeleteI totally agree with the comment and I would like to add that results and targets should be based over a longer time frame of 1 week or 1 month as this also eases the pressure to trade and make money every day.
I do appreciate your comments. Longer time frames and the ability to avoid over trading are essential / SMcK
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