(Newswire.net — October 31, 2019) — Unsurprisingly, professional forex trading can be a lonely career to partake in – making it extremely difficult to master as a result. After all, who is around you to listen to your ideas, advise you on when it’s best to take a step back or to review your trading performance? Once you effectively understand this individualistic aspect of solo forex trading, only then can you confidently continue on your journey to potential profitability and long-term success.
In this article, therefore, the forex education experts at Learn to Trade are uncovering what you need to know before delving into the world of solo currency trading to make sure you’re as prepared as possible for what the world’s most lucrative market has to offer.
Suffering from bias
As with most aspects of life, when only one person looks at something on their own for too long, they risk becoming subject to their own bias through not understanding (or having) contrasting opinions readily available to them.
As a result, problems are likely to arise due to common human factors such as greed, fear of missing out and patience clouding your perspective on trade and causing a larger, potentially negative impact on your trading career. It’s important to register that while one trader may see an entry signal, another trader might see a number of red flags as to why not to enter the same trade. As such, it’s important to remember to analyze objectively as opposed to simply relying on how well you’ve been trading recently.
More likely to have distorted views
Otherwise known as catastrophising, whereby you have an irrational thought that makes you believe that something is far worse than it actually is, solo forex trading has the ability to intensify your negative feelings and make you feel worse as a result.
For example, if you’re facing a losing streak and begin to catastrophise, you’ll look at your most recent losses and declare yourself a failed trader and ultimately quit. Sound irrational? That’s because it is.
Unfortunately for some forex traders, this type of distorted view can change the way you think and cause you to make illogical conclusions, badly impacting your trading as a result. However, so long as you remain realistic and aware of the possible impacts of this, you’re sure to be able to come out the other end and refrain from letting yourself hit the self destruct button.
Struggling with self-motivation
The final but often most difficult hurdle to cross is self-motivation. While this doesn’t always affect everyone, the reality is that if you fall privy to a lack of motivation, this has the ability to impact the entirety of your forex career.
Currency trading necessitates the need for you to be strict with yourself and practice a level of discipline that you need in order to succeed. First and foremost, if you feel yourself slipping and opting for a prolonged cup of tea on the sofa instead of an extra 15 minutes on the platform, then it might be time to prioritize working on this part of your forex strategy.
Finding yourself accountable
What can you do to combat all of the above we hear you ask? Undoubtedly one of the top tricks of the trade (despite potentially being the hardest to effectively pull off) is accountability.
The easiest way to do this is by talking to someone (anyone even!) about your strategy and explaining to them what it means – after all, if you can’t explain your strategy in simple enough terms to someone with no experience in forex, then you clearly don’t understand it enough yourself. Firstly, pick an accountability buddy close to you, before then taking this to online platforms and social media outlets. This will help to relieve any pressure you feel, allow you to maintain objectivity, stop you from fooling yourself and even allows someone else to support and assist you in your currency trading career.
Once you’ve understood the potential downsides to solo trading, you’ll be able to respond as best you can to minimise their impacts. We hope that after reading this article you’re in a better position to tackle these issues head-on, or at least be aware of them before they catapult you into distress.
Author bio:
John James is a content writer for Learn To Trade, the foreign exchange education and learning specialists – offering a range of training courses to help people understand the currency trading market, as well as its opportunities and risks.