The key to making money on the forex is to put aside the affect and trade with his reason instead of placing orders under the influence of emotion. All these rules can be summed up in one principle: each of your actions must be motivated by an objective necessity, not by a feeling or envy. By following this basic but complicated advice to actually put in place, you can start making money on the forex and while being more serene. You need to have the proper understanding of how to trade on bybit.
Let the gains slip, and do not add positions to catch up on losses
The most common mistake is this: stay in front of your screen and change the stop that we had set when we think it will be affected. We say that “it’s an accident” and that “it will go back very quickly”. Conversely, one is sometimes tempted to take one’s earnings before the limit is reached. Two dangerous attitudes that endanger your capital: by doing so you do not respect your trading plan and the best strategies can be ineffective.
The good method for making money on the forex is of course to rely on its trading strategy and not to arbitrarily change the limits set. Take more time to set stops and limits at consistent levels based on the indicators chosen for decision making. Once done, do not touch it, under any circumstances. Trust the “you” of the past who set these thresholds for gain and loss.
Take into account your emotions but keep them under control
Trading is a real exercise in self-control, and it must work upstream, not only when you are in front of your screen. The traders who manage to earn money on the forex are the ones who are masters of themselves. We are not talking about repressing our emotions, it would only make matters worse because there will come a time when you will let go of your impulses and where the trading will come compulsively. You have to learn to recognize the emotions, to see them rise in you without identifying you, you must be able to look at the emotion without reaction, as if it were not really yours. This is an exercise almost meditative. In parenthesis, we personally think that meditation must be an integral part of a trader’s life if one wants to keep one’s head on one’s shoulders.
The Last Words
If emotions are recognized without frustration, we can put them aside and keep a cool head. If the emotion gets out of control and you cannot help but get out of control, get away from the screen. Or take another interesting solution: open a demo account and place all your orders related to your emotions or your intuitions on this account. At the end of the month, count and see how much you have lost. In addition to helping you incorporate the fact that compulsive trading is a very bad idea, you’ll be calmer on the spot. Even though the order was placed on a demo account the action was done.
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