You should necessarily state real purposes, if you want to achieve success in the Forex market. Even if someone can do $400 a day in the Forex market, when there are possibilities, it is not necessary to advance the purposes like this. Look at consequences of such strategy. We will assume, the trading session on Monday has approached to end, and profit/loss remained not changed. On Tuesday there will be a strong requirement to make $800 to be kept in the order of $400 a day, to earn $100,000 a year. But, if there will not be possibilities, the aim will not be reached again. Level of stress, which will start a cycle of frustration and disappointments, will be increased. So that, having spent hundreds for commissions on Monday and, probably, having lost a capital part on bad trading possibilities, what will happen if Tuesday also appears poor on possibilities in the afternoon? During this moment absolutely possibly that strong movement happens at night and the trader will be forced to evaluate the market at the levels far from accounts of a previous day. Inevitably, the market will move within the first 30 minutes, and then “will fall asleep†at long hours, having caused still the big nervousness, which only will amplify, when aim to do $400 a day remains outstanding.
Statement of more real purposes will lower nervousness. It is useful to have general idea of that, how many money you wish to make for a day, but determinate sum installation in dollars, which you are obliged to earn in day, often appears a hindrance for the beginning trader. Psychological researches have shown that compulsion of to reach a definite purpose works only when for this purpose there are necessary abilities. In other words, if your statement has shown that you can make $100,000 a year in any method, do it. However, if you are the beginning trader and your maximum constitutes $15,000 for a year, purpose statement in $100,000 appears unreal. You program yourself on failure. When you are not in a condition to achieve the aim, there come nervousness and disappointments that will lead to trade on emotions. Skilled professionals, probably, also aspire to make $100,000 a year, but they know that there are days, when possibilities are limited. They know how patiently to wait for a case, to take profit in the nearest future. They do not impose the will to the market.
How is it possible to avoid this trap? Remember that you are not obliged to trade every day. Winning traders patiently wait for market conditions when they know that can surpass others. If the market is quiet, they wait for optimum market conditions. They understand that this quiet market will generously award traders who will appear more patiently. They understand that it is impossible to force to reach the market the levels necessary to them. Also it is useful to remember that only long series of bargains will show result. The set of traders can lose in 60 % of cases, four days in a week, but the prize in the fifth day will repeatedly block nominal losses of last series of bargains.
When you establish the purposes, it is important to keep them in the long term. The purposes are useful, when initial conditions are correct. Establish the purposes, which correspond to your level of skill. The failure of the overestimated purposes will upset you more, than stimulates. Also remember that you cannot impose the will to the market. You do not know, what market conditions will be until you will not see what they are. And if there are no optimum conditions, you not can make much. You should accept that, what the market is ready to grant you, and it means patiently to wait for the necessary conditions. Making so, you, probably, will not earn every day, but become consistently profitable trader.
It is a must to gather as much info about currency exchange market as possible. Because this knowledge will help you not to lose much money on Forex trading or Forex investment.
Surely not a single piece of knowledge can be a 100% guarantee against losses, in particular on Forex, but sometimes just one Forex books can be of big service to you.
