TheCapitalManager Posted May 16, 2014 Report Share Posted May 16, 2014 It is essential for any trader to understand and accept that they do make mistakes and more importantly, their trading rules are not always 100% right ! But Yet again, there are alot of traders who start with the best intentions like being disciplined and not get emotional, but eventually fail. It is important that we all should possess the mental strength to stock to it. In order to understand why we violate our own trading rules. The Human Mind The human mind consists of two different parts. The first part is the so called conscious mind. This part is responsible for the actions and decisions we are consciously aware of. If you analyze a chart and arrive at the conclusion that the specific currency pair is “a buy” than the “conscious” part of your brain was at work. The second half is the “subconscious” or “unconscious” mind. This is the “deeper” part which can process thousands of different information at the same time. You are not necessarily aware of the fact that the subconscious mind processes this information. In this part of your mind all the experiences and beliefs you acquired in your life are stored – like data is stored on the hard disc of your computer. You do not actively control this part of your mind – it is like a plane flying on auto pilot mode. When you drive a car for a couple of years most of the decisions taken while you are driving are generated by your subconscious mind. http://images.thevine.com.au/resources/images/000/043/43590_sad%20broker_050811080316_591w.jpg While your subconscious mind can be sometimes helpful in certain trading situations it can also sabotage your trading due to counterproductive beliefs or previous negative experiences. Many “good” decisions in trading are contrary to the human psyche. For example to cut losses short and let profits run. I have discussed this in an earlier article. The good news is – you can practice mental strength which is necessary to stick to your trading rules. You can make the subconscious mind help you in trading if you create new positive trading habits… – by eliminating the old bad habits. Small Steps You should stay away from overly ambitious goals for your trading. It is rather unrealistic to double your account every month. If you set yourself small goals every day you increase your chances for success. Your parents have probably raised you in the belief that you should work “hard” for your money. If this is the case your subconscious mind will not let you make huge profits in any case because this belief is stored deep down in your brain. Working on small goals (single trading mistakes) at a time will very likely lead to better results than overly ambitious goals. Let’s say that you analyzed your trading results over the last few months and you realize that your biggest losses were due to the fact that you did not honor your initial stop loss. Something went wrong here – the decision of your conscious mind to place an initial stop loss at a certain level was somehow sabotaged by your subconscious mind which made you change that stop shortly before the order was triggered. You need to re-program your subconscious mind in order to get rid of that costly mistake. You therefore decide that during the next four weeks you will work on honoring your initial stop loss order. This is your goal now which you will focus on. Associate Actions with Events Every time you achieve your goal of honoring your stop there should be a small reward. You should program your subconscious mind in this way that you associate pleasure with achieving your goal – even if you were just stopped out with a loss. To the contrary you should think of some sort of “punishment” every time you changed your initial stop. This can be taking yourself out of the action for a while and force yourself to take a short walk each time you fail to stick to the plan. It also helps to think and reflect a bit upon what happened. This technique will also prevent yourself from making ****** trading decisions out of frustration and will also program your brain that you will have to take a short walk every time you are not disciplined. . http://theforexchampionship.com/wp-content/uploads/2014/05/trader-happy.jpg Repeat the Process In order to (re-) program your subconscious mind you need to repeat the process. Do not interrupt the procedure even for a single day. If you repeat the process for four weeks in a row your new trading habit will be internalized and you will have improved as a trader. You should approach every trading mistake with that same procedure. First identify and single out the error and then work on eliminating it. traderx4 1 Quote Link to comment Share on other sites More sharing options...
egaalh Posted May 17, 2014 Report Share Posted May 17, 2014 Time and money Quote Link to comment Share on other sites More sharing options...
orni308 Posted May 18, 2014 Report Share Posted May 18, 2014 Mistakes is inevitable in forex you can only minimise its occurrence by experience and gaining proper knowledge. Quote Link to comment Share on other sites More sharing options...
Gad Posted May 19, 2014 Report Share Posted May 19, 2014 nice share... Quote Link to comment Share on other sites More sharing options...
suryalesmana Posted May 20, 2014 Report Share Posted May 20, 2014 Human is friend of mistake and error, they can't be separated. Just keep making many practices and it will make you more talent in trade.. Quote Link to comment Share on other sites More sharing options...
Gad Posted May 21, 2014 Report Share Posted May 21, 2014 Human is friend of mistake and error, they can't be separated. Just keep making many practices and it will make you more talent in trade.. we just have to learn the lesson given to us... Quote Link to comment Share on other sites More sharing options...
usok Posted June 16, 2014 Report Share Posted June 16, 2014 good read, It all comes down to how decided you are, perseverance and dedication. mind over matter, there is no enemy in forex except your self :D Quote Link to comment Share on other sites More sharing options...
Gad Posted June 17, 2014 Report Share Posted June 17, 2014 I have been playing around with forex for the past eight months and have come to realize that quite a lot of traders haven't the faintest clue what a trading system is. But like the old master Yoshi " you do not need a weapon to do battle with. You become the weapon". So my dear fellow traders " a trading system is you". You become disciplined, chose when to enter a trade, exit a trade, manage your money, and the list goes on. The best trading system is you! Quote Link to comment Share on other sites More sharing options...
usok Posted June 18, 2014 Report Share Posted June 18, 2014 good read.. thanks for sharing! Quote Link to comment Share on other sites More sharing options...
Gad Posted June 20, 2014 Report Share Posted June 20, 2014 good read.. thanks for sharing! if you have another tricks please share... Quote Link to comment Share on other sites More sharing options...
bomdila Posted June 29, 2014 Report Share Posted June 29, 2014 mistakes can be reduced only by practice Quote Link to comment Share on other sites More sharing options...
Gad Posted June 30, 2014 Report Share Posted June 30, 2014 (edited) Cease the frivolous postings new guy Edited September 4, 2014 by FloridaTrader Quote Link to comment Share on other sites More sharing options...
venturefx Posted July 2, 2014 Report Share Posted July 2, 2014 You will never reach faultless trading, because it is impossible in trading. You have to resign yourself with the fact that trading is a line of profitable and negative trades (of course second type of trades should be minimum as much as possible. Widespread trading mistake is overtrading which happend where often in my past trading experience. After realizing it I just moved to bigger lots in my OctaFx trading account and reduced the number of entries to 2 in a month. It greatly helped me to stay cool and entry market only when I sure for 80-90% Quote Link to comment Share on other sites More sharing options...
usok Posted July 3, 2014 Report Share Posted July 3, 2014 if you have another tricks please share... I dont know if this would help, this is what i used to do when i first traded forex, I used sticky notes to stick on my monitor, some are things to aviod and others are things to look out for, its more of a "changing the habit" thing, it takes determination or a simple redundant practice. its will power, since most mistakes are due to emotions if you ask me :) Quote Link to comment Share on other sites More sharing options...
Gad Posted July 4, 2014 Report Share Posted July 4, 2014 (edited) No frivolous postings allowed...again Edited August 25, 2014 by FloridaTrader Quote Link to comment Share on other sites More sharing options...
alventa Posted August 25, 2014 Report Share Posted August 25, 2014 yeah right... keep learn the lesson... Learning and doing is the key for minimize the trading mistakes. And then the traders should be make the trading journal. :) Quote Link to comment Share on other sites More sharing options...
fxapex Posted August 30, 2014 Report Share Posted August 30, 2014 Mistakes can only be overcomed by strong dedication and continuous practice, if you learn from your mistakes quickly then you can certainly overcome this problem. Quote Link to comment Share on other sites More sharing options...
alventa Posted September 4, 2014 Report Share Posted September 4, 2014 Mistakes can only be overcomed by strong dedication and continuous practice, if you learn from your mistakes quickly then you can certainly overcome this problem. Learn from the own mistakes, the traders can avoid the same mistakes in next time. So, the trading quality grow up step by step. :-bd Quote Link to comment Share on other sites More sharing options...
binaryowner Posted September 11, 2014 Report Share Posted September 11, 2014 There are no ways to do away with mistakes, trading is something that can't be 100% accurate, losses are not mistakes, but overtrading, improper MM and insufficient trading analysis is something that we can call mistakes which should be avoided. Quote Link to comment Share on other sites More sharing options...
Klimov Posted June 24, 2015 Report Share Posted June 24, 2015 It is clear that errors will always be. But the number and consequences we can adjust. For this purpose it is necessary to do an analysis of errors and the findings are not to step on the same rake Quote Link to comment Share on other sites More sharing options...
fxapex Posted July 1, 2015 Report Share Posted July 1, 2015 It is clear that errors will always be. But the number and consequences we can adjust. For this purpose it is necessary to do an analysis of errors and the findings are not to step on the same rake You have to work on your fear or weaknesses, so that you dont repeat it later, and its not like that once you know it you will never make it again, you have to spend a lot of time to practice it. Quote Link to comment Share on other sites More sharing options...
binaryowner Posted July 13, 2015 Report Share Posted July 13, 2015 It's impossible to get rid of market mistakes. You can cope with them but it will be a constant struggle which will result in trading losses. It's impossible to predict market for 100% Quote Link to comment Share on other sites More sharing options...
nnn123 Posted July 14, 2015 Report Share Posted July 14, 2015 Rajiv, The there is a distinction between unconscious and subconscious minds. The unconscious is the automatic actions that we do (e.g. when driving, we just drive and not think about turning right or left). The sub-conscious mind is the mind that is learning from the time of birth or that matter(so I am told), and we act automatically. e.g. Breathing, taking hands away from the fire etc. Anyway, this is what I have been told. Please correct if I have been misled. Quote Link to comment Share on other sites More sharing options...
SurtiTrader Posted July 24, 2015 Report Share Posted July 24, 2015 The main thing essential to eradicate the trading mistakes is patience and knowledge of the Forex Trading. Quote Link to comment Share on other sites More sharing options...
vic84 Posted July 30, 2015 Report Share Posted July 30, 2015 The main thing essential to eradicate the trading mistakes is patience and knowledge of the Forex Trading. Definately yes, the power of knowledge and practice will help you to trade better and learn fast. Quote Link to comment Share on other sites More sharing options...
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