Forex Market Psychology

8. The mindset of a professional trader-player

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Many members of the investment in a hurry to stipulate that investing is not a game for money. The public gambling causes a lot of negative associations. When you hear a professional playing for money, most people is unmanaged players seeking excessive risk and impulsive squander their savings for a rainy day. But gambling is not necessarily “bad” or “evil.”

Indeed, professional traders are essentially professional gamblers. The only question in the development of correct thinking, clear and focused thinking as a professional player.

Although trading a form of gambling, it is vital to clearly distinguish between maniacs, Amateurs and professional players. Eager gamers keen on gambling. They play for money, to experience excitement and a sense of euphoria. They have absolutely no discipline. Obviously, trading is not the place for a passionate player, or a passionate trader. But many are confused maniac, playing for money, with professional player, although these two types of players – polar opposites. Professional players, like professional traders, have to take risks but manage them carefully. They are looking for a high probability of a successful transaction and only then make the bet.

Lovers, or social players, only interested in fun and entertainment. They allocate from the budget a certain amount of money to play for money, just for fun, and then spend them like a movie, concert or sporting event. Self-indulgence is self-indulgence, so social players do not make sense to develop a detailed strategy of winning at the casino, or carefully calculate the risks at the blackjack tables, for example. In some ways, social players get the thrill of hoping to meet Lady Luck and win big.

Many new traders, however, make the mistake of applying the mindset of the Amateur, social player trading. They consider trading as a fun. If You have extra money, this trade can’t hurt, but most of us want to make a profit. And thinking of the lover can quickly wipe out your account. If You are serious about trading, it is vital to change this way of thinking. You can find trading enjoyable, but the main objective of professional trading is to make a profit. Moreover, you need to develop winning trading skills, but also to manage risk, to develop discipline, to control your emotions and execute the strategy with a higher mental capacity.

Do not enter the market just to experience the surge of emotions. Find terms with a high probability of success and stand on the sidelines until the conditions are when You can win. You have to act like a professional player when he calculates the risk. Just as in the professional game, trading the issue of patient expectations of probability. At every throw of dice, a professional gambler risks very little, to be able to ride out a series of losses. Professional traders also face losses of bands, and it is vital to minimize the risk to survive and wait for the probabilities in their favor.

It is useful to consider the trading as professional gambling. This is the correct term. However, be not Amateur, but rather, by the casino, which will carefully calculate the likelihood, make sure that it is on his side and will take advantage of the “law of averages” to ensure that a large number of transactions You will make more profit. Abandoning the Amateur thinking and forming of professional approach, You will trade profitably and consistently.

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