Category: Traders mindset

Yoga & Its Benefits For Forex Trading

When it comes to forex trading, we all know how important it is to keep your emotions properly in check. Leading with your heart instead of your head will only get you into trouble later down the line and it can be very hard to make rational well thought-out decisions that adhere to your trading strategy when you’re impassioned over something.

 

Controlling your emotions is certainly easier said than done when trading currency pairs and the good news is that you’re by no means alone if you are struggling in this regard. Even professional traders can find it hard to keep a lid on it when it’s necessary, so if you are new to the trading game, don’t worry too much about it.

 

There are lots of ways you can start to build up emotional resilience and strength so that when something does happen, you have the skills and experience you need to fall back on, helping you to steer clear of potential trouble.

 

For example, coming up with a robust trading strategy based on your analysis of the markets is a great first step to take, as this will allow you to devise different ways to approach certain situations and scenarios, knowing when to stick and when to twist.

 

Take this as an opportunity to also come up with some golden rules for yourself, such as getting out after a series of three wins or three losses, which will help ensure that you continue to trade consistently and without bringing emotion, positive or negative, into the equation when making decisions.

 

But there’s something else you could consider giving a go if you really want to master your emotions so you can trade lucratively… and that’s yoga.

 

Emotional management is an essential skill if you’re to be a successful trader, allowing you to react to everything in a much more constructive manner.

 

You can develop these skills in a variety of different ways, such as journaling (which is recommended for traders, in any case) or breathing exercises… which are especially effective for emotional regulation during times of excitement or stress.

 

A lot of yoga practice is focused on the breath and becoming more aware of your breathing and the associated sensations is a really effective way of anchoring yourself in the present moment, which in turn helps to calm and quieten the mind.

 

This gives you the time and space you need to absorb and adjust to what’s happening externally so you’re better able to approach it in a more rational frame of mind in the future.

 

But it’s not just the mental health benefits you can enjoy with yoga. Engaging in more physical activity and getting more exercise will only serve you in good stead when trading, allowing you to get rid of any tension that may have built up in your muscles over the day, as well as any pent-up aggression or stress you may be feeling.

 

Traders often find themselves hunched over their desk or staring at a screen for prolonged periods of the day, so this kind of exercise can help you work out any niggles or aches and pains you might be experiencing.

 

What’s great about yoga is that it’s a win-win and you’re able to enjoy both the mental health benefits and the more physical ones at the same time, helping you to keep your focus and continue to trade with a positive outlook and the best mindset for success.

 

If you’re new to yoga and aren’t sure where to start, here are some beginner poses and techniques you could try, either at home or in the gym.

 

Child’s Pose

 

This is an essential yoga pose to familiarise yourself with. It’s actually a rest pose and you can use it whenever you need to if some of your other more difficult or taxing poses start to feel uncomfortable.

 

Child’s pose is really easy to do and is an effective way to relax your nervous system. All you need to do is kneel on your mat with your toes tucked beneath you, then lean forward and stretch your arms across the mat in front of you, lowering your glutes towards your feet.

 

Rest your stomach comfortably on your thighs and let your forehead fall forward to gently touch the mat. In this position, you’ll find that your spine, thighs, hips and ankles enjoy a gentle stretch. It can help you calm the mind, reduce tiredness and anxiety and help increase blood circulation to the head.

 

Cat & cow pose

 

Cat and cow is a really lovely flowing pose to try, helping you with the mobility in your back – which is great for traders, since you’ll often find yourself sat at a desk in front of your laptop.

 

To try this one out, kneel down on the mat and place your hands below your shoulders, pushing gently through the mat with your fingertips and palms so you feel well supported. Keep your spine neutral and your abs engaged.

 

Take a big deep breath in and, on the exhale, round your spine so it extends towards the ceiling, while tucking your chin towards the chest so you release your neck.

 

When you breathe in, arch your back and relax your abs while lifting your head and sending your tailbone upwards. Move slowly and follow your breath, making sure you only move within your comfortable range of motion.

 

There are all sorts of health benefits associated with this particular yoga pose, including improved posture and balance, strengthening of the spine and neck, improved coordination, stress relief and a greater sense of emotional balance.

 

Downward dog

 

This is one of the most well-known and most popular yoga poses of them all and it’s a brilliant way to give your back, arms, shoulders and hamstrings a good stretch… although you’re sure to feel it throughout your entire body!

 

To do it, get down on the mat on your hands and knees, with your palms just past your shoulders and the fingers pointing forwards. Position your knees so they’re below your hips, then lift the hips and press your palms down into the mat so you form a V-shape with your body.

 

Keep your feet hip-width apart and hold the pose, focusing on your breath as you inhale and exhale. On the exhale, gently draw down with your heels so that they’re closer to the mat – but don’t overdo it and make sure you stay within your range of motion. If you feel any twinges, relax out of the pose and don’t push yourself any further than that.

 

If you can’t reach your heels to the floor, it suggests that your hamstrings are too tight and you should never try to force yourself into any yoga pose, as this could result in injury if you’re not careful. Always make sure that you listen to your body when practising yoga!

 

As well as strengthening your upper body and elongating your spine, downward dog also helps you build strength in your hands, wrists and fingers, as it’s a weight-bearing posture. From a mental health perspective, you may find that this pose relieves feelings of anxiety and depression, stress and any mental fogginess you may be experiencing.

 

Warrior I pose

 

If you’re feeling a little stronger and want to try something a bit more challenging, the Warrior I pose is a great place to start.

 

This pose will really help you focus on the alignment and positioning of your body – and focusing so intently on what you’re doing physically will really help you clear your mind of any and all troubles you may be experiencing on the trading floor.

 

Start in downward-facing dog (see above!), then step your right foot forward so the toes are in line with the fingertips. Bend the front knee 90 degrees so your thigh is parallel to the floor and your knee is stacked above the ankle. Then pivot your back foot so it’s at 45 degrees to the side of the mat, making sure your feet are placed so you feel nice and stable.

 

Keeping the back knee straight, extend your arms up so that the hands are shoulder-distance apart and the palms face each other. Squeeze the shoulder blades together and down, lifting your chin to gaze at your hands. Hold the pose, then repeat on the other side.

 

Physically, this pose will help you strengthen your legs and upper arms, as well as stretching the muscles around the hips and helping you improve your balance and core strength.

 

Of course, these are just four beginner poses to try and there are countless others that you might find useful as you become more experienced as a yoga practitioner. You may also find it beneficial to join a yoga class, however, since it can be difficult to progress on your own and you may not be doing the poses in such a way as for them to be most effective.

 

For forex funding, get in touch with FTUK today. We fund your trading strategy with our capital, allowing you to optimise your craft and master your trading skills.

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Anger Management In Forex Trading

One of the very first lessons you learn when embarking on a career in forex trading is how important it is to keep your emotions well under control.

 

Keeping a clear head is an absolute must, no matter what happens, win or lose, if you’re to continue seeing an overall upward trend… and, if you’re ruled by your heart rather than your head, it’s likely that you’ll see your progress start to falter and before you know it you’ll be on a downwards slide.

 

But, of course, it’s often easier said than done to stick to your trading strategy and not make off-the-cuff decisions because of something that’s happened.

 

If you are new to trading, it’s key to remember that everyone struggles with this and you’re certainly not alone, with professional traders also finding it hard to stick to their guns and trade consistently, rather than letting their emotions take charge.

 

This is where a strong trading strategy really comes into its own. Following the plan and not deviating from it, no matter what, is surely the key to success – even if your heart is pulling you in a different direction. A good strategy is based on analysis and analysis alone, and it’s essential that you trust yourself and the work you’ve put in away from the trading floor.

 

Unfortunately, when your emotions do start to rise, it can be incredibly difficult to suppress them – especially when you feel that first flash of anger and your heart rate and blood pressure start to go up.

 

Frustrating outcomes are an absolute inevitability when trading currency pairs and this is something all traders have to accept if they’re to see the successes they’ve always dreamed of. Otherwise, failures will become more and more consistent – and, before you know it, you’ll have abandoned your trading dreams altogether.

 

Anger is one of the most basic of emotions but it’s also one of the hardest to control. The most instinctive and natural way to express anger is to respond in an aggressive way. This is simply our natural response to threats and stressors, giving us the tools we need to fight and defend ourselves when we feel attacked.

 

While that’s great from a survival perspective, it’s less effective if you want to see big wins as a trader, so looking into anger management could prove particularly beneficial. The aim of anger management is to help you calm your emotional feelings and reactions, while reducing your physiological responses at the same time.

 

You need to accept that you’ll never be able to avoid or eliminate everything that causes you feelings of rage and anger, but you are able to learn how to control your reactions… and this will stand you in excellent stead as a trader.

 

So, with all this in mind, here are a few tips and coping mechanisms you could try to help you the next time you feel that all too familiar flare-up rising up through your chest.

 

Square breathing

 

Breathing exercises are really effective ways to calm your mind and give you the time and space you need to gather yourself and regain control of your emotions.

Square breathing is a great place to begin if you’re new to mindfulness techniques such as this. Sit or lie down in a comfortable position, then breathe in through your nose for a count of four. Hold your breath for four counts and then breathe out through your mouth for another count of four. Hold your breath for four counts, breathe in for four counts… and repeat.

 

Inevitably, thoughts will continue to crowd your mind at first but the aim of this practice is to always bring your focus back to your breath, taking note of the sensations of the air in your lungs and belly, how it feels coming out through your nose, the feeling of it as you hold your breath.

 

When thoughts do enter your mind, simply acknowledge them and bring your attention back to the breath, without dwelling or pausing overly long on what’s going on in the mind.

 

As you practise, you’ll find it easier to do this – although it can be tricky at first. Start off with a couple of minutes and try to increase the amount of time you spend doing the exercise, to really help keep you centred and your mind quieter.

 

Distance yourself

 

If something isn’t going as you would like, don’t force yourself to stay in the situation, as this will only serve to make you more flustered and agitated – ultimately leading to potentially disastrous decisions on the trading floor.

 

Take a break, even if it’s just for five or ten minutes, and put some physical distance between you and whatever it is that’s getting under your skin.

 

If, for some reason, you can’t escape elsewhere, try putting some psychological distance between you and your stressors, looking at the situation objectively by imagining someone else going through it and considering how they might approach the problem.

 

Write it down

 

Traders are often advised to keep a trading journal so they can keep track of their successes and failures, helping them analyse their work each day and seeing potential areas for improvement.

 

Journaling can also be very useful from an anger management point of view, as well, allowing you to express your feelings in a constructive manner… which can be very cathartic, helping you to calm yourself and clear your mind before returning to the problem with a fresh perspective and a new attitude.

 

Have a laugh

 

There’s no better way to flip your mood on its head quickly than by laughing a lot. Even if you really don’t feel like it, take a break and find something funny to watch, read or listen to.

 

Laughter is, in fact, a really effective stress and anger management tool, one that has almost immediate short-term effects. When you laugh, you stimulate lots of the organs in your body, including your muscles, lungs and heart, which increases the amount of endorphins being released by the brain.

 

Stress responses are also calmed when you laugh, helping your heart rate and blood pressure to drop… leaving you feeling nice and relaxed.

 

Over the long term, laughter also has a wide range of potential health benefits, including boosting your immune system, increasing personal satisfaction, making it easier to cope with tricky situations, pain relief, boosting your mood and so on.

 

Do something creative

 

Expressing your anger is natural and, some might say, essential. You don’t want these negative feelings to build up over time without having some kind of outlet for them, or they could burst out of you at quite the wrong time and in a very unproductive manner.

Channelling your negative energy into some kind of creative endeavour can really help you free yourself from what’s shackling you and holding you back.

 

Interestingly, recent studies have shown that angry people are actually more likely to be creative, with anger associated with unstructured brainstorming that can help deliver creative problem solving.

 

Angry study participants demonstrated having more ideas by volume, as well as more original ideas than those who were sad or unemotional… although this benefit was relatively short-lived and only present at the start of the task in question. Over time, the number of ideas all levelled out among the participants.

 

Painting could be a particularly fun and fulfilling way of expressing your anger and helping you to release any pent-up rage or stress.

 

Why not keep a set of paints and some paper nearby, so that when you do start feeling the emotions overwhelm you, you can simply take a step back, get the paintbrush out and see what comes out on the page.

 

Stop trading!

 

If you’ve been on an upward streak and have enjoyed three consecutive wins in a row, consider stepping away from the markets and taking a break. Do the same if you’ve suffered three consecutive losses in a row.

 

Prevention is always better than cure where anger is concerned and it’s possible that if you do continue to trade after a series of wins or losses, you could start to make some ill-informed decisions, whether that’s over-trading because of confidence levels or revenge trading because you’re chasing losses.

 

This will generally only end in disaster and then your anger response could well kick in, leading you to make even more dubious decisions.

Taking regular breaks can help stop this from becoming problematic, allowing you to keep your emotions well under your own control and ensuring that you’re able to continue trading consistently, no matter what.

 

Do you want to find out more about forex funding? Get in touch with the team here at FTUK to secure immediate funding so you can start earning from day one.

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How to Improve Your Forex Trading Psychology

One of the key pillars of successful forex trading is developing the right mindset. It’s just as important as having an in-depth technical knowledge, and it’s a skill that dedicated traders continually work on. Good trading psychology helps you to manage your emotions, make more rational decisions, and trade to a consistent pattern.

 

Ultimately, the right mindset boosts your chances of making profitable trades, using forex funding well, and of avoiding damaging losses. The forex markets can be volatile, and keeping a cool head is your best defence against being battered by the turbulence. Sometimes, you will need to make decisions that seem to go against your natural instincts.

 

Fortunately, there are many techniques and steps that can be learnt to help you manage your emotions and behaviours when trading. Here are some of the most important starting points.

 

Keep greed in check

Greed is a natural human instinct, that no one is immune to. It’s down to centuries of evolutionary survival tactics, where the opportunity to stock up on supplies while the going was good meant the difference between life and death. The pursuit of wealth is still a great motivator for many people today, and it can of course lead to rewards.

 

However, this instinct to prioritise profits above all else will work against you in forex trading. Greed can make you double down on a losing trade, or over invest in a potential gain, and incur damaging losses. You may even be convinced that you are doing the right thing.

 

However, greed is a powerful and treacherous emotion that can easily overpower cooler thoughts, and to conquer it, you need to understand it. It’s a reactionary emotion, meaning that it can make you follow the herd and try and take advantage of every passing asset bubble. The problem is, bubbles will always burst in the end.

 

The best trading strategies tend to follow a consistent pattern, and see the bigger picture, rather than react to every possible get-rich-quick opportunity that crops up. Some super-savvy investors even take what is known as a ‘contrarian strategy’ which is to trade off the back of market panics. However, this is best left to very experienced traders only!

 

For the rest of us, the best way to conquer greed is to first understand and be aware that it affects us all. The next step is to toughen up your trading strategy. This means that you should manage risk and always stick to a trading plan. Work out what your risk tolerance is; that is how much money you can comfortably stand to lose on each trade.

 

Never be tempted to take high leverage to try and maximise a profit, if it means crossing your tolerance zone. This is no better than gambling. Guard against the urge to over-trade, which is another very common mistake that new traders make. More trades do not equal more profits; it is how well you manage your trades that matters.

 

Another common pitfall for new traders that is related to greed is overconfidence. This can happen as the result of a first run of successful trades, and emboldens the trader to take higher leverage, or make more trades, and hang on to them in the hope of maximising profits.

 

This is often the way that the markets can trip up a new trader, by inducing a false sense of confidence. The excitement of success, and making knife-edge decisions under pressure, can be intoxicating, and this can lead to you abandoning a logical trading strategy. Remember that the best route to success is to follow cool logic, and not your emotions.

 

If you are well disciplined in your trading routine, and stick to your strategy through thick and thin, then you are far less prone to falling prey to the power of greed.

 

Getting a grip on FOMO

Greed’s nasty little twin is fear, and its evil cousin is Fear of Missing Out (FOMO). Fear is another very powerful emotion, which drives the most basic of human instincts. It’s easy to understand from an evolutionary perspective; it let our ancestors know when they were in danger from predators, and stopped them from taking foolish risks.

 

Fear is still a necessary emotion, to let us know when we might be in a dangerous situation, and to lose touch with it completely would be a bad idea. However, most of the time, we aren’t in a life-or-death situation, yet the primal fear instinct kicks in when we think we might be vulnerable to a loss, and this includes on the financial markets.

 

The problem is that fear can lead a trader to abandon hard-learned lessons. This means they might cut short winning trades for fear of making a loss, hang onto a losing trade rather than cut their losses early, or make trades for the sake of it rather than leave funds sitting in their account. This last pitfall is known as FOMO in trading.

 

Psychological studies have shown that most people are loss averse, meaning that the fear of making a loss is more powerful than the pleasure of making a profit. While greed should be guarded against, as we have seen, fear is often the more overwhelming and complex emotion to master for many forex traders.

 

One of the reasons for this is that it can be entangled with other powerful emotions, such as jealousy and pride. The pressure not to miss out on a bargain can be hard to resist, because we not only fear losing the chance to grab a bargain, but we covet what we perceive others to have, and take pride in our successes and gains.

 

There are other types of fear that can come into play, such as fear of the unknown. This may because you have starting trading before you were ready, and have not acquired enough background knowledge about how the forex markets work, how to put together a sound trading strategy, and how to stick to a daily routine.

 

If you suspect that this may be the case, it’s best to go back to the drawing board, and work with a demo account until you get your confidence levels up. Trading blind is basically just gambling, and your luck will run out sooner or later. Ignorance can lead to fear, but ignorance can easily be remedied with some learning and skill-building.

 

Another common fear is the fear of being wrong. Now, this is not the same as a lack of knowledge and experience. Even experienced traders make mistakes, and good traders will sometimes make losses, even though they stuck to a tried and tested strategy, and didn’t make any serious errors of judgement.

 

The thing is, losses are part and parcel of trading, and even seasoned traders take the occasional loss. This is because the nature of the markets means that there is no way of being right 100% of the time. There is no correlation between winning percentage and profits, because what matters is trading within your limits, not being right all the time.

 

Therefore, a good forex trader is constantly on their guard against letting their ego cloud their judgement. Remember that there is no one single way of doing things. The need to be winning all the time, and to make huge profits, will lead to taking higher leverage than you can handle, over trading, and not cutting your losses.

 

Planning is key to being a good trader

Failing to plan is planning to fail, as they say, and this is never truer than when trading the forex markets. The single best defence that you have against making emotion-led decisions when trading is to arm yourself with a well-informed trading strategy. Every move that you make should be guided first and foremost by this plan.

 

Set out your risk management parameters, by putting a limit on the amount of money you are willing to lose on each trade. Read up on the technical aspects of trading before you start making live trades. Understand how to read the charts, and grasp the basics of support and resistance levels. Use stop losses on your account to help manage risk.

 

 

Know when the best times to enter the market are, which currency pairs react to which economic news. Read up on how data releases influence the forex markets, and study how they react to macroeconomic events and geopolitical announcements. Keep a journal so that you can track your progress, and review it on a regular basis.

 

Finally, it is important to keep a good work life balance, and not constantly think about your trades. Include some activities in your daily routine that allow you to clear your mind, such as meditation, exercise, or socialising with non-trading friends. Keeping a sense of perspective will help you to relax and enjoy your trading more.

 

It is perfectly normal to have fears and anxieties around trading, or to sometimes become overconfident. The key is to keep these emotions in check, and follow your head, not your heart.

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TRADING WITH A SOUND MIND

https://youtu.be/FrbwsZIt008

As traders we need to trade with a sound mind in order to make the best trading decisions. In this video we look at some tips!

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How To Build Psychological Resilience

While FX trading can be a big thrill – and it’s certainly an exhilarating way to spend your time – because of the nature of the markets, it carries with it a big element of risk, as well.

 

Of course, this is partly what makes it just so exciting, but where there is risk there is stress – and, as such, traders would do themselves a real favour by making sure they’re fully equipped to handle the pressure… or they could find their mental and emotional health and wellbeing starts to suffer, as a result.

 

This, in turn, will lead to even more negative outcomes on the trading floor… a truth universally acknowledged is that an emotional trader is a losing trader and you’ve got to keep those emotions firmly in check, at all times, win or lose, if you’re going to see the successes you’ve been dreaming of.

 

Of course, stress can also be useful from a trading perspective and it can help traders be more disciplined and make fewer mistakes. However, it can become problematic, particularly for new traders who don’t have much live trading experience… and this is when it starts to take its toll.

 

So what can be done to ensure that you can keep a level head as you trade? Keeping your cool is an absolute must, no matter how well you’re doing – so here are a few top tips to help you build that all-important psychological resilience and make advances in your career as a trader.

 

Give yourself a break

 

Striving for perfection never did anyone any good and it’s important to acknowledge that you aren’t always going to get it right – and to forgive yourself when you do get it wrong.

 

It can be tempting to go over and over something in your mind when it happens and often this can lead to internalised feelings of negativity, which can result in even more stress and anxiety… which won’t do your trading any good either.

 

Over-thinking is the art of creating problems that don’t exist, or so the saying goes, so when something does go a bit awry, don’t focus on it too much. See if there are any lessons you can take away from the experience to improve your trading… and then simply move on.

 

Get organised

 

It’s easy to feel overwhelmed when you have so much to do, but strong organisational skills can make you feel a lot more in control. This will help you think with a clear head, you’ll be less likely to miss something important and allow you to make well-timed and rational decisions based on your trading strategy.

 

First of all, think about when you’re at your most alert and when you have the most natural energy. Identify this and then make sure you schedule your most important tasks at that time, so you can concentrate more effectively.

 

Avoid taking on too much at first, especially if you’re new to trading, as you could stress yourself out even more, making it harder to achieve what you want. Take everything one task at a time, perhaps with the most important jobs first, and you’ll feel more on top of everything and far more focused on your overall goals and ambitions.

 

Be proactive

 

If you are feeling stressed out right now, sit down and ask yourself why. It’s unlikely that any problems you’re facing will sort themselves out, but an action plan to help you address the issues can make you feel empowered, allowing you to see what needs to be done and where.

 

Your solutions may not be quick fixes, but they’ll do the job in the long run and before you know it, you’ll be back on that winning streak once again.

 

Learn how to relax

 

You’re sure to find yourself challenged at some point in the future, so it’s important that you know how to practise self-care and what you can do to help yourself relax, unwind and give yourself some time to breathe.

 

Self-care comes in many forms so it’s up to you to decide what that means and what you would find relaxing, but there are some initial steps you can take to improve your mental and emotional health and wellbeing, such as getting in a solid sleep routine and sticking to it, getting more exercise, staying well hydrated and following a healthy and well-balanced diet.

 

Be flexible

 

Any strong trading strategy will enjoy an element of flexibility – an absolute essential in a world that constantly changes and evolves. It’s vital that you’re flexible and adaptive when you’re forex trading, so you can make well-informed decisions swiftly as new information comes to light, whether that’s the latest economic report or a seismic political event.

 

Don’t be swayed by what happened yesterday or the day before. Approach each new trading day with a fresh perspective and an open mind, reviewing the market that you see before you, not the one that you saw yesterday nor the one that you think you’ll see tomorrow.

 

Of course, you can – and should – make trading predictions based on the patterns and signals you identify in your own analysis… but don’t be afraid to backtrack and change your mind if you think it’s necessary.

 

If you stick to your guns and you don’t see the outcome you want or thought you would, it can easily weigh on your mind and impact the rest of your trading decisions.

 

Practise mindfulness

 

Mindfulness is something of a buzzword right now, with the need to prioritise mental health and wellbeing at an all-time high following the pandemic. In essence, it’s the art of bringing your attention to the present moment, fully anchoring yourself in the here and now – and it brings with it all sorts of interesting and useful benefits.

 

These include helping to relieve stress, lowering your blood pressure, improving sleep, reducing pain, improving emotional regulation, giving your mental acuity a boost… all sorts of benefits that could prove really helpful from an FX trading perspective.

 

Practising everyday will give you a really strong weapon in your arsenal when it comes to building psychological resilience with a view to winning big on the markets.

 

You don’t need any special tools or resources to get going with it and it’s very accessible for newcomers to meditation. Simply find some space and alot yourself some time. A few minutes at the beginning will be enough to get you started. Either sit or lie down but make sure you’re comfortable and then start bringing your attention to the present moment.

 

The easiest way to start doing this is by paying attention to your breath, noting the sensations as you inhale and exhale. You can also do a body scan, where you check in with the different parts of the body, noticing how they feel, any areas of tension, any sore spots, anywhere that feels sensitive and so on.

 

You’re sure to find that thoughts come in and out of your head as you go… this is inevitable! But in mindfulness practice, the idea is to acknowledge these thoughts but not dwell on them, returning your attention to the present moment time and time again.

 

The end result is reduced brain chatter, a more focused mind and lower stress levels… so if you have been worrying that your trading is being affected by your mental state, it could be beneficial to give mindfulness a try.

 

Maintain strong connections

 

You might not think that maintaining strong interpersonal relationships would have any impact on your trading results, but guess again. Trading can be a very solitary activity and you don’t want to isolate yourself.

 

Remember that people are inherently social beings and surrounding ourselves with others helps us to face up to challenges and pressures head on, to overcome any problems we encounter and helps us to grow from the lessons learned.

 

A fresh eye never hurts, either, so if you are struggling with anything – trading related or otherwise – asking someone for their point of view can help clarify your own vision and allow you to move forward with your decisions.

 

In conclusion…

 

Resilience is an essential skill that gives you the mental and emotional strength you need to succeed in times of adversity and hardship. It gives you something robust to fall back on as you overcome the challenges that lie ahead.

 

It is inevitable that you will experience stressors in the future, but resilience helps empower you to adapt and evolve, based on the situation you find yourself in. And that is sure to help you when trading currency pairs, delivering the wins you’ve long been after.

 

Interested in our funded forex account? Get in touch with the FTUK team today to find out more.

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7 TIPS TO BEING A SUCCESSFULL PROP TRADER

https://youtu.be/FwhuqgkjkG8

Develop a plan and be strict

 

Firstly, understand what you are going to be doing with your time in the market, such as pairs you will trade, amount of risk approach, amount of time you will spend on the charts. Overall win or loss stick to the plan and be strict with your own trading rules. Try to aim for lots of trading volume and build a sample size of 100 trades to analysis.

 

Set stop losses for all trades up to 0.5%

 

Only look to increase your lot sizes as your account size grows. Start small and work your way up to trading bigger. Always prepare for losing streaks as they can happen so make sure to control the risk per trade otherwise it can easily control you.

 

Never try to compensate for a loss

 

Close the chart and return with fresh eyes the next day after both wins and losses. As traders we get paid for making correct decisions, and the best option post trade is to step away from the chart and return the following day.

 

Never force a trade

 

Trade when it feels like the right moment, and it complies with your plan. Ideally you always want to trade in a relaxed environment with your mindset in the right place. Don’t trade purely because you feel like you should be working, or in a trade. You should always be able to verbally explain the reasoning behind entering a trade.

 

Try to achieve more profitable trades over a large sample and less unsuccessful ones

 

Build upon a winning formular and not one or two winning trades. Gaining an edge in the market is much more sustainable compared to getting lucky over a few trades. The more trades you place and the better your expected value is over a large sample of trades will increase your confidence and ability in the market.

 

Test your methods on a demo account with a decent sample size

 

It is a good idea to back test your strategy on a demo account, with a decent number of trades. Mentally if you rush too quickly into the market on a live account it can feel overwhelming. Experience is a big teacher in trading. Chart time is key.

 

Join FTUK and make accelerated growth

 

We support profitable and experienced traders so if you are a profitable trader with confidence in your ability to make long term profits, then be sure to sign up with us today and start leveraging your success!

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Are You A Slave To Your Cognitive Bias?

The success or failure of any Forex trading scheme ultimately comes down to one thing and one thing only… decision-making. The FX world moves incredibly quickly and you’ve got to be able to respond in kind, otherwise your trading career will be over before it’s even begun.

 

But have you ever wondered what, if anything, leads us to make specific decisions – and is there anything to be done that could improve your decision-making to really drive your successes on the trading floor?

 

The psychology of choice certainly makes for interesting reading and it can prove really beneficial for your trading game to sit down and work out exactly what you think is motivating you to make different decisions… and what could subconsciously be making you lean in one direction or another.

 

Biased thinking

 

We’re bombarded with a lot of information every single second of every single day, but our brain is only able to process a tiny amount of it, so we’re helped along in our decision-making by what are known as biases.

 

These are an inevitable part of what it means to be human and they can either be quite useful or they can cause us to make cognitive errors, so it can be helpful to give your decision-making processes a review from time to time to see if there’s anything holding you back.

 

There are two types of bias in psychology: Conscious or explicit bias, and unconscious or cognitive bias. 

 

With conscious bias, you know what your feelings and attitudes on a subject are and you conduct your relative behaviours with intent. With cognitive bias, you’re not always involved in the process, with your subconscious essentially making your decisions for you.

 

On the one hand, what’s useful about cognitive biases is that they can help rid you of the burden of making the decisions in the first place, freeing up your mental load and allowing you to make choices relatively quickly… which is great from a trading perspective, because the environment can turn on a dime and you need to be able to react accordingly – and trust yourself to be able to take decisive action as and when it’s required.

 

However, these cognitive biases can also prove to be far more of a hindrance than a help, if our decisions are being prejudiced by unconscious attitudes, values and beliefs. This is where emotion can start to overtake reason in decision-making… and this could see you hit a slump with your trading ambitions if you’re not careful.

 

There are different types of cognitive bias that could potentially be influencing your success, but familiarising yourself with them could give you the tools you need to make changes to your reactions, decisions and behaviours. Here are some of the main cognitive biases to get to know.

 

Confirmation bias

 

Confirmation bias is what makes us unable to look at our current set of circumstances in an objective way. We spend our time seeking out data and information that confirms what we believe to be true, without seeking out sources that could potentially challenge these thoughts and ideas.

 

For traders, this is clearly problematic and can see you cutting winners way too early or refusing to give up on losing trades, despite the cold hard facts presenting themselves to you right before your very eyes.

 

You’re sure to have your own opinions as to what’s going on the market and that’s great. It’s as it should be. But you can help keep your confirmation bias well under control if you make sure you seek out the opinions of other analysts as well, as this will help you gain an unbiased impression of what’s going on.

 

Attribution bias

 

This one is an interesting one! Attribution bias is when we decide who or what was responsible for any particular outcome. For traders this could be attributing a series of wins to your unrivalled skills as a trader, but attributing your losses to external factors, whether that’s market unpredictability or sheer bad luck… as long as it has nothing to do with you!

 

Being overconfident can have a huge impact on how you trade. After all, we all know that emotions are the devil’s work when it comes to trading and you’ve got to keep them all in check, even when you’re doing well. Or especially when you’re doing well!

 

If you think you’ve fallen into this particular trap, adapting your trading strategy can help you avoid any potential fallout. Take a look at the different products you trade and see which ones you dedicate the most time to. Are they your best performing trades or are they falling short of the mark?

 

If they’re doing incredibly well, try to decipher why that could be and see if you can then take this knowledge and apply it to your other stocks. Post-trade analysis is always a good move if you want to upskill as a trader and you’re sure to see improvements soon if you start carrying out regular reviews.

 

Herding bias

 

As problematic as being overconfident can be for traders, being nervous, not trusting yourself and not sticking to your trading plan can also have an impact on your trading career.

 

Herding bias is often referred to as ‘sheep mentality’, referring to making decisions based on what others are doing, even if you know deep down you should be sticking to your guns.

 

It can be very difficult not to second guess yourself when the majority of other traders start reacting in a certain way, of course. It makes you think they know something you don’t… which is how you end up joining the herd.

 

So what can be done? Well, sticking to your trading plan and having faith in your own analysis is really the only way to beat this particular bias. If everything points towards a certain direction, it makes sense to go in that direction, even if a large group of traders seem to be doing something completely different.

 

Doing this means that, even if you’re wrong, it still represents an excellent learning opportunity and you can actually work out any issues with your trading strategies. If you just blindly follow everyone else for no discernible reason, you won’t be able to gain anything much of value from the situation, regardless of whether you win or lose.

 

Recency bias

 

Habitually successful traders will make sure that they factor in historical data when analysing trading markets, making their decisions based on a wide range of different criteria.

 

If you don’t do this, you put yourself at risk of falling foul of recency bias, where you end up making decisions based on a very recent event, rather than adopting a more holistic viewpoint.

 

The impact of recency bias can be huge for traders and a trading journal can help you keep on top of it all, tracking your performance over time. 

 

A solid trading strategy is also a must, so you can keep your goals at the forefront of your mind and what your plan is to achieve them. This will help you keep your emotions in check and ensure you approach your trading with nothing but a clear mind.

 

The endowment effect

 

We’ve said it before and we’ll say it again… successful trading means leaving your emotions at the door. The endowment effect can be a big problem where trading is concerned, when you become emotionally invested in a particular stock or trade.

 

This can be because the trade in question has some kind of personal significance for you, which then leads you to value it more highly than you might have done otherwise. This can result in you clinging on to something and continuing to persevere with it, even if it goes against your overall investment goals or risk tolerance levels.

 

To avoid this particular mental trap, keep up to date with all the latest information and developments related to your trades. You’ll be able to update your trading strategy when presented with new information… so make sure you keep an open mind in this regard.

 

Having a clear exit strategy in mind for all your trades can also help prevent you from falling victim to the endowment effect. 

 

No matter what trade you’re dealing with, make sure you set some limits and restrictions in place… and make sure you stick to them, no matter what happens. Trust yourself, trust your analysis and you should see more wins than losses over time.

Are you considering joining a Forex funding program? With FTUK, you can trade whenever and wherever you like. All you need is an internet connection and you’re ready to roll. You’ll enjoy immediate funding and can hit the ground running with our capital. We also cover trading losses and reward all those who implement solid risk control.

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BEATING FEAR IN TRADING

Beating The Fear In Forex Trading

 

Whether you’re new to the wonderful world of forex trading or whether you’re well versed in the art of buying and selling, there is a single universal truth for one and all… currency trading can be scary!

 

Of course, the fear is partly what attracts us to trading in the first place. What’s life without a little risk, after all? But fear starts to become problematic for traders when it gets in the way and holds you back, driving you to making all sorts of terrible trading decisions that ultimately lead to substantial losses and failure.

 

There’s no place for emotion when it comes to trading and you’ll need to keep your own in check if you want to see success. Fear is perhaps the biggest obstacle you’ll have to overcome if you do want to start making real wins – and don’t be fooled into thinking that it’ll be an easy thing to accomplish.

 

Many traders find it really hard to keep fear at bay and all that work they put in researching different strategies and picking up different technical skills goes out of the window. Fear ends up making the decisions for them – and they’re usually the wrong ones.

 

Of course, it’s normal to feel fear when you’re investing so much time and money into something. You don’t want to lose, after all.

 

But also bear in mind that this fear can also be a force for good, as well as evil, as it means that you’ll assess all the risks properly before making any decisions. Just make sure you don’t let it overwhelm you and paralyse you into doing nothing or acting rashly. A clear head is an absolute must!

 

What are you afraid of?

 

The first step to conquering your fears is to work out just what it is that scares you most. Some fears are more common than others and it’s just a matter of being honest with yourself and seeing where you need to focus your attention first.

 

Fear of loss is, of course, a very common problem that traders develop. No one wants to lose their money. Losses early on can compound this issue, with traders spurred on to reduce their trading – so the chances of profits are also reduced.

 

Another really common fear is the fear of being wrong. Failure is inevitable and this needs to be acknowledged.

 

You can’t expect to be an expert immediately and it will take a lot of wins and losses before you can say you truly know what you’re doing – and the losses are a really important part of the process, so check your ego at the door and accept that you’re bound to make mistakes along the way. It’s not about being right… it’s about making money!

 

And then there’s the fear of missing out. This is one of the hardest ones to overcome and is largely driven by greed. When you spot a potential trade a little on the late side and you consider it to be a great opportunity, you pounce because you don’t want to miss out, even if it goes against the strategic rules you’ve set for yourself.

 

How can you beat the fear?

 

The good news is that, even though fear while forex trading is inevitable, there’s a lot you can do to address the problem head on.

 

The way you trade will help to keep your fears under control. First of all, never risk what you can’t afford to lose and make sure that you choose your trades appropriately. This may limit potential profits, but it’ll cut your losses as well and help you to build confidence.

 

Coming up with a specific trading plan is another excellent strategy to bear in mind. By following this and not deviating from the rules you’ve set for yourself, you’ll be able to reduce uncertainty and fear… and enjoy trading all the more.

 

Overtrading is also something to avoid where possible. If you trade too much, you’ll sustain unnecessary losses and this can take a real toll on your confidence levels. When your confidence dips, you’re more likely to experience fear of loss. So take a break, don’t trade and come back with a new mental and emotional approach to the game.

 

Have you tried mindfulness?

 

Away from the currency exchange market, you might find something else particularly useful when it comes to keeping your fears under control. Meditation and mindfulness can really make a huge difference to the way you trade and how you handle wins and losses, so if you’ve been feeling a little overwhelmed of late, it could certainly be worth a try.

 

A recent study carried out by researchers at Harvard-affiliated Massachusetts General Hospital found that mindfulness meditation could actually alter how the brain processes fear memories… and even extinguish fearful associations altogether.

 

Sara Lazar, senior author of the study, said: “Fear and anxiety have a habitual component to them – the memory of something that provoked fear in the past will trigger a habitual fear response when we are reminded of the event, even if there is no actual present moment threat.

 

“The data indicates that mindfulness can help us recognize that some fear reactions are [disproportionate] to the threat, and thus reduces the fear response to those stimuli. Mindfulness can also enhance our ability to remember this new less fearful reaction and break the anxiety habit.”

 

From a trading perspective, practising mindfulness will help to keep your mind clear and more focused on the present moment. You’ll find you’re better able to read and analyse the market and are less likely to make ill-considered decisions in haste.

 

And you’ll be able to boost your performance by avoiding destructive trading practices, driven by emotional responses to the likes of anger, greed and fear.

 

There’s a reason why so many professional sports teams around the world are increasingly using mindfulness to help give their game a boost.

 

Anchoring yourself in the present moment keeps you entirely focused on your current pursuit – but how do you go about achieving this particular mental state and how do you stop your thoughts, anxieties and worries from intruding?

 

How to practise mindfulness

 

The great news is that mindfulness is very easy to practise and it’s achievable for everyone, with immediate benefits to be realised from the very outset.

 

It can be done anywhere and at any time, which makes it perfect for traders, as the trading world changes constantly and there’s no telling what might happen, so having a tool you can employ at the drop of hat is particularly advantageous.

 

First of all, make yourself comfortable in a space that feels calm and quiet. Sit or lie down and set a timer for a short time (five to ten minutes, if you’re just starting out). Bring your attention to your body and how it feels, making sure you’re in a comfortable position.

 

From there, bring your attention to your breath, following the sensations as you breathe in and out, noticing how your chest and belly rise and fall, how the air feels passing in through the nose and out through the mouth.

 

Your mind will wander as you do this – and don’t try to control your thoughts. The aim here isn’t to quiet your mind… this is impossible! When your mind does wander, acknowledge the thought that has appeared and then let it go, returning the attention to your breath once again.

 

It can be a lot harder than you might think not to dwell on the thoughts as they appear, but be kind to yourself and don’t judge yourself harshly over what’s popped into your mind. Just bring your attention back to the breath each time.

 

What’s even better about practising mindfulness to up your trading game is that it will have all sorts of positive knockon effects in other areas of your life, as well.

 

Studies have been done that show mindfulness is effective at reducing depression, anxiety and stress, can improve emotional regulation (which we’ve already discussed!), can improve your memory and can help you think more flexibly and clearly.

 

Interestingly, research has also shown that mindfulness can help relieve the symptoms of all sorts of different health conditions, including lower back pain, fibromyalgia, type 2 diabetes and rheumatoid arthritis… so it seems like mindfulness has a lot of the answers, extending from the trading floor and beyond!

 

As for trading, attitude is certainly everything and it’s important to identify your strengths and weaknesses before you embark on your career as a trader. Being honest with yourself is essential, so you can make the necessary adjustments to your mindset that will help you see big wins more often and keep those hits to a minimum.

 

If you want to start trading when you like, where you like, sign up to one of our funded trading accounts and immediately start trading with real money. We provide inhouse trader support, alongside courses and online coaching… so don’t worry! You won’t be going it alone!

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Positive trading mindset

Positive trading mindset

 

Forex trading can be an exciting and fulfilling career, but it is not for the faint-hearted. With so many uncertainties in today’s market, you need the correct trading mindset like a captain to hold your own behind the computer screen. Whilst discipline and self-control play a big role, having experience and knowing the markets capabilities will help keep you balanced.

 

The forex market is an unpredictable place. The best traders will always find themselves caught off guard by an unexpected outcome, but this just proves that they’re doing their job right and working hard at it! If you have the right outlook and preparation, you will be able to survive both the winning and losing days.

 

Forex trading is both an exciting and stressful experience. A trader’s confidence may be lost throughout the process of trading, which can lead them to become mentally exhausted as well over time if they do not learn how to adapt their mindset for success on this new life path of theirs, this means learning about mental fortitude too!

 

We all have moments where we feel anxious and fearful, but it’s important to remember that if you’re not in the right headspace then your performance at work or school will suffer. The more confident someone feels with what they do on a daily basis has an huge impact on how well he does throughout their career – this is especially true for traders who need confidence before putting money onto trades because there are no guarantees when making decisions about whether something could lead towards positive returns.

 

Focus on process

 

In this article, we will discuss the rewards that Forex trading can offer. We have mentioned in most of our previous articles about why focusing on returns may not be a good idea for traders and what is more important when investing your funds into any form of investment (not just forex).

Almost every trader out there knows how profitable currency moves are; however- as with many things in life! There’s always an “exceptions to exceptions”. It turns out these few people who focus too much time or money into making them rich tend do even worse than those without such addictions…

 

The forex market can be highly volatile and the uncertainty in it is pretty high. There really isn’t a sure way to make 100% profit on every trade, but if you’ll focus mostly inwards your trading plan rather than outwards – which could destroy any chance at wealth-building over time due too much attention being paid only towards seeing how well one was doing financially while ignoring all other aspects like risk management skillset or lack thereof etcetera-, then things will go more smoothly.

 

You will start to feel bad after this trade. You might even go on a revenge trading spree without thinking twice, all you’ll be able think about is taking back what was lost and making things even worse than they were before! More stress sinks in – which means your decisions get clouded by it too (incurring more losses).

 

So, it’s clear that you can lose a lot of money in the markets, but if you focus on process rather than outcome then there’s no need to worry. Your trading plan will dictate when to enter and exit trades regardless of whether they are winning or losing so long as your account remains safe throughout all transactions. So even though today might not turn out well for us traders (and trust me – sometimes it feels like every day is bad!), at least tomorrow awaits with open arms and potentially a different set of trading results. 

 

Focusing on the process first will give you a competitive edge. Consistency is key to being profitable as well, so don’t neglect that!

 

Practice and patience

 

Everyone knows that to be a great trader, you must put in hours of practice. But what if I told you, it’s not just about how much time we spend practicing our craft but also where? The type of trading content you consume and post-practice mood! So next time you study a new method or look at someone else’s trades, try to see what you can extract in a positive way and discard the stuff that doesn’t make sense to add to your current strategy.

 

The more you prepare yourself, the easier it will be to find success in any field. Being prepared for what’s going on around us can make a huge difference and give off an air of professionalism that people want from their professionals!

 

Positive thinking

 

Your positive mindset in forex trading is one of the most important aspects to your success. If you want confidence, then thinking on Brighter side will help improve both how successful you are at trade and live with yourself day by day since everyone has their own problems or anxieties which they struggle through every single second like us traders do too.

It is no secret that successful people in forex trading are confident, regardless of what life throws their way. Your thoughts create your reality so if you prepare for the rainy day then it will most likely materialize soon after.

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