Motivation and ambition are invaluable components and something to always lean on when faith in talent is not sufficient. Skills (you must spend hours in front of charts, reports, order flow, or how you now want to trade), discipline, and hard work can compensate for what you lack in talent. You can learn how to utilize the little talent with the most optimal way and take it to new levels through hard training. Maybe they should be able to see the talent that the spark plug, but it is still the engine that makes the journey forward possible.
Remember that there are some people who are completely untalented, everyone has an aptitude for something. Sometimes they are just so that the talent comes so naturally that it can be difficult to detect. The best way to define talent is by the conclusion that a talent usually is the experience of fun. There is always a strong link between what we perceive as fun and what we have an aptitude for. Therefore, it is very important to be service-oriented, knowledgeable and able to quickly adapt to different situations that may occur and the like to trade. But remember – trading is not suitable for everyone, so it’s just.
Hard work and feelings
How should you start?
Below are a few points that we think it is good to start with:
Learn the basic about the different markets
Read some tradingböcker
Try to decide how you want to trade and try to niche your informationsintag to the type of trading that you believe in.
Sit down and try to find a structure in the chartsen.
Accept that you can’t become a successful daytrader at a time.
Test your new settings.
Record everything you do.
Do more of what you do, and the less of it you do bad.
Turn statistics on everything you do (number of trades, reason for entry, reason for exit, how many wins, how many losses, biggest gainers, biggest losers, in percentage outcomes between winners and losers, etc.).
Go live with small capital and take small risks in order to gradually increase the results you desire.
It is strange how few people really understand that hard work is a must to achieve success. To be hard working should be to a personality trait. Even the most successful people who have come to know through the years, the work in spite of all its success is still hard, and will do until they drop. It is often said that a winner is put off only when he is in the grave.
Sooner some hard work, it can be difficult to curb the desire to work and, as a result, they may difficult to identify outside of work. You do not need to become a workaholic just because you have a positive attitude to work. Instead, try to find an approach that is realistic and consistent with you.
Each and every one of us is struggling with their feelings regarding work as a broker, in particular in such a market like Forex. Inability to manage stress is one of the main reasons for the failures, account reset, and thus a reduction of self-esteem. It has been fixed a long time ago that it doesn’t matter what method you use to invest, the most important thing is psychology. To understand how our brain helps to eliminate mistakes commonly committed even by experienced investors.
In the traditional method, rejected the teaching about the economy, the idea that the psyche of the device can be adversely affected by the investment decisions. Developed theories of arbitration, portfolio, equity valuation, which was based on two main assumptions:
1. People make rational decisions
2. In the predicted future, the human will be more impartial
But, from a psychological point of view, it has long been known that these assumptions are incorrect. People behave often irrationally, and their forecasts is that they make mistakes in the future. Theorists have not allowed the idea that economic decisions can be biased in a predictable way. This means that we with high probability can determine how we behave in a given situation, when money is involved, especially big money, which it wont be in the foreign exchange market.
With the help comes to us here a new branch of economic science, behaviorism in finance, which examines how psychology affects the financial decisions. In order to assess some of the binding decisions by certain risks and uncertainties, using the brain data, such as facts about a situation or an estimation based on the probability theory. The problem is that the input factors is our current mood and our emotions in connection with the effects of the decision.
The problem appears best according to the so-called prospect theory and the curve of satisfaction.
How can we interpret this curve in relation to the two axes, of which one is profitable, and the other is our emotional state?
The first is a concave function in the part relating to profits. Investors feel the satisfaction when, for example, earn 100 crowns, and 200 crowns – they do not feel two times better than when they earned only 100. Therefore, it is difficult to retain the more profitable positions. We close them after we earned some pips, because the pleasure is greater. Especially if you’ve previously closed some orders at SL.
The other is a convex function for losses. This means that investors feel the worst for the first time when the order is in the red. Why is this so? This causes a movement of the Stop Loss for ever-more-distant levels. The loss increases and then begins the emotional process.
This is related to the operation of our brain, and we need to follow the basis of investeringsprinciperna. The principles says that we need to cut losses quickly and let the profits grow. The moving of Stop Loss surely lead to depression, and a rapid closure of positions will lead to frustration. A simple drawing can explain the origin of our mistakes, and the understanding of brain function – eliminate them and lead to an increase of our holdings.