Why Do We Look For The Perfect Trade In Forex?
Here was a question I was posed from an Inner Circle member, [1/15/2011 3:03:58 PM] My quick question is: How can I overcome from the perfecting phase to the performing phase? (I hope you know what I mean/think of) Thanks in advance, Tom. Cheers from Denmark.
In all my years trading I have gotten different variations of this same question. If one person has this problem, I have found that dozens more people also do so as well. I am happy to answer this question so that the dozens that are hiding can get a workable solution. Just to note I have answered this question and much more in my E-Book on Money Management. If you find this article useful please come on over to the blog and post some comments.
The main Issue with this trader occurs quite often in neophyte traders. He is looking for the best possible entry to take his trade. He wants the trade to move immediately in his favor.It is this issue that is causing undue stress on himself, and because of it he self-sabotages himself constantly. We need to laser in on the problem at hand:
Perfection is rejecting anything that is less then perfect, you demand that all be in perfect order. The Medical Definition helps us out further, lets look at that definition.
In the medical definition it state that a person will feel a state of being that is worthlessness, if perfection can not be obtained. It also states that it is the setting of unrealistic goals. Perfection can not be obtained.
The unrealistic setting of goals is a definition that we want to keep in the forefront of our mind.
Perfectionism in trading is a form of procrastination. Procrastination in trading occurs because of the fear of being wrong, it is Ego based. This persons values being right(showing that they are smart) more then they value making money in the Forex Market. This will cause most to trade haphazardly. Taking one trade that sets up and disregarding another, then moving s/l (either up or down.) It just creates confusion, which produces non adaptive behavior. That will put you in the negative loss loop. Confusion...Errors...Losses!! Rinse and Repeat Confusion....Errors.... Losses. Errors are not following your trading rules! Errors have nothing to do with losing Money we all do that, Trading without losses is like living only breathing in and never breathing out! Your main job as a trader is to Control The Losses. How Through Money Management.
My treasurer and mentor Aldo Pizzoferrato always told me that "Professional Traders Look For Over All Performance, Novice Traders Look For Perfection."
Let me ask you a deep question. Do you like to feel unworthy and unintelligent? If you do keep on attempting to be perfect in trading Forex. You see when you look for perfection you are not dealing with the market, you are dealing with yourself. When never really trade the Forex market, we only trade our internal beliefs about the Forex market. We are attempting to force the market into our belief patterns when we strive for perfection. How do we break this pattern? Make it okay not to be perfect. Realize you are not perfect in Forex and here is a super secret, Neither is the guy or gal you do not see on the other side of your Forex Trade.
The Key Super Secret tips are listed below:
*You can never succeed at trading if all possible objections must be overcome first!*
Next:
Understand that you have a trading plan , and it is best to stick with that plan and excute the trade accordingly, then to second guess yourself to the point of late entry or no entry at all.
Lets look at the steps necessary to overcome this evil Ego Based issue.
1. Trading Forex is much like medicine part instinct and part science. It is truly an art-form. It is all probability based. However just like in medicine if you follow the frame work you will save the patient. 2. Trust yourself you have a money management plan in place to protect you. 3. Realize trading without losses is like trying to play guitar with only one hand, impossible! 4. Trust your high probability system(If you are missing any of these steps, no wonder you are stuck losing in Forex) 5.Test and retest your entry and exits using the formula I gave you in my Money Management E-book. 6. Know that no-one is perfect, make it okay to not be.
With those in place..... See your set-up.....Feel Good... Pull the trigger and follow your plan.
So these are the steps needed to move away from the stuck state of Perfectionism. JUST DO IT! You and your Forex account will be the better for it.
Article Source: FxTradingStock.com
About the Author
And Now I Would Like To Offer You To Learn More About Forex Trading By Visiting MySite For Professional Traders, All Are Welcome, As A Gift For Visiting I am Offering A Professional Bank Trading System. Come On Over To TomStrignano. For More Information on this topic please see Why Do We Look For The Perfect Trade.
by: Tom Strignano
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Word Count: 832
Date: Sun, 23 Jan 2011
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