Forex Trading Articles

STRANDED BUT PROFITABLE

Forexmentor Team
© 2007, Currex Investment Services Inc.

May 21, 2007

If you were lost and alone on a desert island, with only a satellite connection to monitor price action and place your trades, you would probably trade more profitably. What about the feel of the markets provided by the media? What about friends to show off to when you win? In the end, most people would be better off if they were alone on a desert island. Why? As much as humans are social beings, other people usually get in the way. When we are trying to trade "in the zone" with a calm and focused mindset, social issues often distract us: listening to the opinion of others, comparing ourselves to others. If you could trade on your own terms and at your own pace, you would trade at the top of your game.

Social processes are more powerful than we care to admit. If you ever traded in a room full of traders, you know what I mean. If a young trader is on a good run, making a bunch of winning trades, and you are in a slump, you feel as if you should be doing better. You start thinking, "This is a little embarrassing. I better step up my efforts, and try to make more winning trades." Suddenly, you may start trading impulsively. You may start putting a little pressure on yourself so you won't be so far behind. Social pressure can be strong at times, and force you to trade impulsively. Think about what is happening. You are taking unnecessary risks, and for what? To make a few winning trades, and when you do, temporarily think you are "just as good" as the guy on the roll? Is it worth it? It isn't. You may end up losing money and feeling worse. If you looked at matters logically, you would think, "Who cares what anyone else is doing but me. I'm going to go my own way. I'm going to methodically and carefully follow my method, the method that I know earns profits."

Most people look for direction from the crowd when they trade. They mindlessly try to look for confirmation, and feel safe when they follow what everyone else is doing. They try to make it easy, but you can't make many profits by trying to trade the easy way. You have to do a little more thinking. Rather than follow the crowd, it's necessary to trade like an individualist.

It's essential to go your own way when you trade. Don't look toward others for advice. Don’t worry what other people think. Don't try to impress others. If you acknowledge the power of these issues and prepare for how they might impact you, you can beat them. Get ready to put up a defense. Repeat over and over, "I'm not going to care what anyone else is doing or worry about what anyone thinks. I am going to think independently and do things my way, no matter what." You might pretend you are alone on a desert island. Imagine you are by yourself, alone, and loving it. If you can devote all your psychological resources to your immediate experience, you will enter the zone. Don't be distracted by other people. Just do things your own way, and in the long run, you'll trade like a master.

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