Psychology

Once you’ve made the time to get properly educated, demo trade, and save up sufficient capital, the time will come where you will have to tackle the markets. By this time you should’ve have learned the mechanics of trading and methods to analyze the market that you are most confident using.

But are you ready to risk your hard-earned money?

Can you put your money where your mouth is?

Can you handle the (emotional, psychological and financial/economic) pressure of the occasional losing streak and account drawdown?

Will you be able to control your excitement on a profitable trade?

Can you let go of your last trade and completely focus on your next opportunity?

What separates the profitable traders from the unprofitable ones is that profitable traders can handle the pressure of risk and control their emotions. They realize that losing is just a part of business. Those who have enough confidence in their methods and systems know that a drawdown is a short-term setback and they will soon recover.

This final crucial lesson can’t really be taught. It will take time and experience. You have to put in the hours. You will have to go through a gazillion different trades and different market environments before you grasp and live these concepts. If you can’t do this or aren’t willing to, then ultimately, trading may not be for you.

Additionally, be sure to check out our Forex Psychology Blog: Pipsychology.