Do you struggle to make money Forex trading and learn to control emotions first? If so, then you’re in the right place!
You can make money Forex trading and learn to control emotions first, by not making Forex trading your life, and only by trading the Daily time frame. Stop looking for trade setups that don’t exist, and stop punishing yourself when things take a drastic turn for the worse.
While the answer to this question is simple, it’s also very subjective! Many traders will say it comes down to the markets are rigged for retail traders to fail!
Where… others say it’s because of the lack of resources at their disposal to compete! So, in today’s lesson I will share why you don’t make money due to over trading in the markets and 5 ways how you can get back on track!
Even when I started trading, I felt the odds where stacked against me. Whatever strategy I implemented onto the markets, I still seemed to lose. The more losses I would take the more determined I was to prove I could make money Forex trading and learn to control emotions first!
There’s definitely some truth to that, when it comes to Forex trading the odds are stacked against us as retail traders. Otherwise, there would be a lot more profitable retail traders out there!
But here’s the thing…
All of this is really just an excuse, now there is some truth to these reasoning’s. But…they are not why retail traders actually fail!
So why do retail traders fail to make money Forex trading and learn to control emotions first?
Simply put, they give up!
As harsh as it might sound, this is why traders fail, they just give up. Even myself included. I also got to this stage, I wanted to give up!
Even though having the odds stacked against me and limited resources, which made it more difficult with trading. I didn’t give up, but more on why I didn’t later…
These where just obsolesces along my trading path. In my site I have shared many strategies, trading lessons and helpful tips for you to learn to become a more discipline trader.
If you are new to trading I suggest to check out the basics of Forex trading first on my site! If you’re ready to start trading with a profitable strategy I suggest checking out my latest article I wrote all on a Forex swing trading system.
Plus… don’t forget to download my FREE Forex swing trading blueprint guide. But, there’s one trading lesson I’ve not yet shared with you: Back to why I didn’t give up with my own trading…
With my ability, or perhaps the correct term here is my inability when I started trading was to control my trading emotions. This became the number reason why I nearly gave up!
You see… without controlling your emotions when trading, is why most retail traders fail to make money Forex trading and learn to control emotions first. With being unable to control emotions with Forex trading, can also lead to one over trading the markets.
If you want to become profitable with Forex trading you need to know when to have time away from the markets.
What do I mean?
As a Forex trader to succeed you will need to know when…
you need to take a breather away from the charts. So you don’t run the risk of over trading and eventually blowing your account. Over trading is one of the main reasons why traders will just give up. They don’t know when to stop trading, and come back refreshed another trading day.
Again this comes down to your emotions, with thinking the more you trade the more money you will make!
Now there are going to be many reasons why a trader would over trade and not take time away from the charts. For me, I only started to find success and started to make money Forex trading and learnt to control emotions first after distancing myself away from the charts and controlling my emotions.
In other words, I started to avoid long periods of chart time. Let me now share with you reasons why you may find yourself over trading the markets and need to to take time out.
I will also share with you what I did to get back on track with not over trading and removed those destructive habits I had gained! Lets get started…with how over trading can cause you not to make money Forex trading and learn to control emotions first.
Reasons Why You Might Be Over Trading
Lets get straight to the point…
All traders want the same, they want to be able to make consistent profits from the markets. In fact, in search of those consistent profits, turns a trader into their own worst enemy.
I experienced this same issue when I was trading, instead of using a structured approach with my chart analysis I started to become obsessed. Now, having an obsession with your trading is a good thing to have.
I mean if you don’t have a good amount of obsession to make money Forex trading and learn to control emotions first, you’ll never succeed.
However… there’s big difference between being passionate about something or being obsessive with destructive actions.
How are these differentiated?
Having passion towards trading, and using a logical approach with the decisions you make.
With: when there is no trade setup for the current day.
You know the best step, would be to close the charts down and come back the following day. Regardless of how much you want to trade and make money Forex trading!
Forcing yourself into these situations to trade is setting yourself up for failure in your Forex trading. As well as being over obsessed with your trading their are some other key elements you need to be aware of.
Not taking time away from the charts after these situations with your trading, can cause you to over trade drastically and blow your account! These are the exact same issues I faced when I started trading, and later I will share with you how I resolved these issues.
Trying To Trade In BAD Market Conditions
What are bad market conditions?
Trying to trade in bad market conditions such as a choppy market or a consolidation. Even though these two don’t always go hand in hand, you will find a choppy market can come after a consolidating market.
Trying to trade during these conditions is going to set you up for losing trades! As a general rule, if you start to see a consolidation occur after a strong trending market.
This is going to be a red flag!
To be successful with Forex trading, you should look to avoid these consolidating and choppy markets and focus more of your time catching and trading trends.
The best way I found to approach choppy and consolidating markets. Was to use key levels of support and resistance and to wait for a valid breakout in one direction. You can read more on difference between support and resistance, and improve your own trading today by heading over to a recent article I wrote by clicking here.
Trading these breakouts incorrectly is one of the reasons why retail traders actually fail. To learn how I trade breakouts check out my latest trading lesson…
Trading After A Large Win Or Loss!
I’m sure if you’ve been following me for some time, you will know that taking a break after a loss or even a string of losing trades. Is a good time to take a break away from the charts.
I’ve not shared with you before, it’s also a good time to take a break after a win or even a string off winning trades.
Just like when you take a loss in your trading when you make winning trades your emotions are going to spike and run wild! As I’ve said earlier in this article, not controlling your emotions in trading is a big factor why traders will fail.
When you make winning trades I suggest you need to also take a break from your trading and the charts. For one, your confidence is going to grow each time you make a winning trade.
Now, confidence is great! But with confidence comes “GREED”
Greed is going to become an emotion that is destructive to your trading, even more so after a string of winners. It’s best then, to take a step back and take a break. To compose yourself and control your emotions, then feel free to trade again.
5 Ways I Got Back On Track With Make Money Forex Trading And Learn To Control Emotions First!
Now you know one of the best ways to make money Forex trading is with controlling your emotions and take time away from the charts. Let me now share a few ways I resolved this issue with my own trading…
1. I Don’t Make Forex Trading My Life!
What does that mean?
We’ll…It’s important to have other activities you enjoy doing, don’t make Forex trading your Life!
Especially if you are only trading the Daily time frame, this I will discuss in the next way I resolved the issue of over trading. As you will have learnt from my Forex swing trading approach.
With trading the Daily time frame you will only find you get 5-6 trade set-ups a month. This means you’re going to have lots of free time on your hands. And the last thing you want to do with that free time is to spend it watching the charts (over trading).
You guessed it, this is the time you would get caught forcing yourself to take trades when there aren’t any valid set-ups!
So how do I overcome this?
Simple… get a hobby!
There is going to be something else you’re interested in that you can enjoy your time doing. Instead of spending all your time watching the charts and over trading. This will keep you from falling into the trap of over trading, plus giving you a clear mindset before coming back to trading.
2. I Only Trade The Daily Time Frame
The one simple technique that saved my trading career!
As simple as this might sound, moving your trading from those lower time frames and only trading the Daily. Is going to turn your trading around!
Trading the Daily time frame, will basically slow everything down. It will give you time to do your analysis creating better decision making. Moreover, trading the Daily time frame will make your trading more simplified.
With not now having to sit in front your screen watching for trade setups hours at a time. To learn more why I feel moving to a Daily time frame is going to be the best decision you will ever make.
Check out another one of my trading lessons, I wrote to improve your skills as a Forex trader “4 Forex Market Trading Mistakes That Cause You To Lose Profits!”
3. I Stopped Looking For trade setups that don’t exist
Another technique I used to improve how to make money Forex trading and learn to control emotions first.
Was, as a trader it’s quite easy to fall into the trap of searching for trade setups.
I mean. if you continue to search for a trade setup, perhaps one you found that didn’t meet your entry criteria. After staring at the charts hours at a time, you will eventually change your mindset and decision making on the setup.
Where a setup you didn’t like at first, begins to look better by the second! Then before you know it, you’ve convinced yourself it is a valid setup to trade.
Has this happened to you?
If so, then you will be able to relate to what I’m saying.
Why does this happen?
The reason behind this is a simple one, instead of scanning the charts for a trade setup that stands out. You go searching for trades and before you realise you’ve picked a bad trade setup.
What changed my performance was: Once I have my levels marked on each currency pair, I am able to scan through the charts taking only minutes each day. You see, If I don’t see anything jump out at me, then I don’t trade that day, and I just return to check the next day.
It’s as simple as that, sometimes the most simplest techniques are the most powerful ones.
What I suggest, is to always keep your analysis each day as brief as possible. As, the longer you sit and search through your charts for a trade setup the more likely you will fall into the trap of finding a trade regardless of it’s quality.
4. I Don’t Punish myself If I Get It Wrong!
I can’t stress enough here, one of the worst things you can do to yourself as a trader is… punish yourself when you have a trade go wrong. This was something I used to do when I started trading, when I would lose a trade, I would punish myself when it lost.
What do I mean?
At the end of the day, you can become frustrated as a Forex trader when a trade goes wrong. But when a trade goes wrong because you changed your trade plan, there’s only one person you can really blame.
That of course is yourself! But when a trade just doesn’t play out as expected it’s just one of those things. Here lays the problem, as humans, you feel the need to rationalise everything in life, this includes if you lose a trade even though the trade quality was good.
What happens next?
You go back to the trade that you took, and continue to look over the trade until you find a reason why you believe it failed! Remember this setup was a A+ setup, so in reality it was a good entry.
But, you punish yourself by trying to find a reason why the trade failed, thinking you have made incorrect trade analysis. This can become one of the top reasons retail traders will fail. As you will look to change your trade setup next time around.
And…guess what happens next?
The next trade loses, because you changed your trade analysis. Once again this comes into your trading emotions, with the fear of losing the next time around.
So how I overcame this issue, was to come to terms with losses. Especially more so, when they come from the very best setups. I suggest you keep to this approach with your own trading as well, so you don’t punish yourself when a trade goes wrong!
5. I Changed my profit expectations
How long does it take for someone to make money Forex trading?
How much does a profitable trader make each month?
It doesn’t matter what Forex related forum you visit, these are the most commonly asked questions. The most common reply tends to always be “it depends”
I totally agree with that, no one can answer that question by placing a definite time line on the outcome result. With how long it takes to make money Forex trading or how much you can make each month.
One thing I have noticed with new retail traders is they are not optimistic with their trading results. I will answer these two questions from my own experiences. There isn’t anything better then to have knowledge from someone who has been where you are today.
So, how long does it take?
For myself: it took years, not months and most definitely not days!
And… how much does a trader make on average each month?
On average: I would say not more than 5-10% a month. Most traders are more likely to be below 5% each month. If you’re not yet profitable, always remember Forex trading is not a race it’s more like a marathon!
Remember what I said at the beginning…
The only way a trader truly fails is if you give up!
On the verge of giving up? Learn to trade NAKED!
Are you ready to take your Forex trading education to the next higher level, and learn how to trade naked with a raw price chart? I’m not saying you will be literally trading naked: But you will learn how I trade a naked price chart!
Do you want more freedom?
Then understanding how the markets really move with using raw price with a swing style of trading is going to be a perfect strategy to take you to the next level.
Most traders who do swing trading are also more confident in their system and therefore they avoid most mistakes of novice traders that is caused by lack of confidence. If this type of trading interests you then you can find out more on this type of trading by reading another article I wrote by clicking here.
My conclusion with want to make money Forex trading!
If you want to learn how to make money Forex trading and learn to control emotions first! You will need to learn how to avoid these emotions and not over trade.
And without the temptation of trading setups for the sake of excitement. You will be on the right path to trading success. Finding other activities to keep you occupied, while waiting for the next trade setup.
Is going to greatly help you keep a clear mindset.
Using a Daily time frame is going to be the best way to slow down your trading, and avoiding taking trades in unwanted market conditions. It will slow everything down giving you time to evaluate each trade setup you look to take.
Make sure you don’t go searching for trades, remember to scan your charts each day and if there isn’t a valid setup, this means there isn’t one!
Don’t over exaggerate your profit expectations, keep it to a minimum of 5% a month, anything more will be a bonus!