If you trade the forex or online currency market, I am sure
that at some point in your trading career you have had the
unfortunate experience of a string of losing trades. Maybe
it even got so bad that you actually wiped out an entire
trading account (sadly, I know what that feels like).
Conversely, you probably also know what it feels like to
have a string of massively winning trades, and few feelings
in the world of forex can match the ecstacy of this
experience. And I am sure that you have at least heard of
some of those traders that seem to always experience this,
those who have seemingly god-like abiities to create truly
staggering amounts of money in a short period of time.
But what is it exactly that separates the highly profitable
traders from the mediocre or novice traders? Do they maybe
have some secret newsletter that they share amongst
themselves that gives exchange rates a day in advance? Not
quite. Actually the answer is surprisingly simple, but
this does not mean it is exactly easy to implement in your
own life.
The ability to consistently place highly profitable trades
in the forex market comes from being able to completely
separate your emotions from your trading, and to be almost
completely detached from the outcomes of your trades.
I can pretty much guarantee that you will not find a single
professional, profitable forex trader that obsessively
checks his trades every two minutes, and then freaks out if
they start to go down. If you find yourself doing this,
then you have a high level of emotional attachment to your
forex trading, and this is most likely the reason why you
are not yet fabulously successful.
Now I am sure that if you are reading this article then you
have at least some basic knowledge of the foreign currency
market, and you will also know what a pip is. Forex
traders have heard this funny little word before and are
familiar with it, but I bet that if you went up to some
random person in the street and said 'Excuse me, can you
tell me what a pip is?' they would be tempted to laugh in
your face.
The word 'pip' is actually an acronym for 'price interest
point,' and it is the smallest unit that a currency
exchange rate can fluctuate. For example, if the current
exchange rate for GBP/USD (that's the British Pound/Dollar
cross, but you already know that) is 1.1800 and it goes up
to 1.1850, then we would say that the price has increased
by 50 pips.
So we have established that profitable forex traders
possess a high degree of emotional control, and the key to
getting to this level of emotional detachment when trading
is to only focus on the PIPS rather than the MONEY. This
is easy in theory, but when you are really at your computer
placing those trades it can be alot harder. You need to
change your perception of forex trading altogether, and
instead of viewing it as a way to make money, try to see it
as only a game where you try to accumulate pips, and the
more pips you gather the better you do.
A really good way to begin to change your perception of
forex trading to the point where you see it as only a
'pip-gathering game' and you are no longer blinded by
emotions is to make extensive use of demo accounts. Do not
overlook the importance of using a demo account to gain
trading experience, because this is literally your roaming
ground for learning how to place profitable trades without
fear. After all, there is virtually no difference at all
between the way your trading platform looks when you are
trading a demo account, and how it looks with a real
account.
It stands to reason that because a demo account and a live
account are so similar, if you spend time getting to the
point where you can trade a demo account profitably, doing
the same thing with a real account will look and feel
identical.
Mainly, it is this change in perception where you only see
forex trading as a game that separates the men from the
boys and the winners from the losers in forex. And the
great irony is... the less you care about actually making
money, the more money you make!!
----------------------------------------------------
Online forex trading can be a very profitable business, but
many more people lose money in forex than those who make
money simply because they do not know how to trade
properly. Put yourself in the profitable minority, and go
to http://www.Forex-Prosperity.com to find out how you can
build your fortune in forex.
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