When you are in the Forex market, you will never say that you don’t have any opportunities. The truth is that because the Forex market offers continuous opportunities. Even though there are opportunities, there will be challenges too. If you are a naïve trader, this can be overwhelming but don’t worry! If you understand how to play, you will win in the market. If you consider the Singaporean traders, they were not born traders, but somehow their skills and talent have shaped them into professionals. So, if you have the skill to trade Forex, it wouldn’t take too long to become successful as a Singaporean trader. So, now, why do you think that professionals claim that trading is like a mind game? Is it really like a mind game? It doesn’t look like a mind game, but underneath the façade it is. If you don’t think and trade, you will not be able to make money from trading. However, just like when you are playing games you have to do a few things. What are those? How do you play games and how you incorporate those habits into trading? Let’s see!
Being calm despite the situations
If you are aggressive, you wouldn’t be able to play a game until the end. Most games include a lot of challenges, and there will be times when you fail badly. Sometimes you might fail in the last minute. Just like that, even in trading, you might fail really badly. Some trades might look super good, but then, when you enter, it might turn out worse. So, things can happen, and you have no control. Anyway, if you react aggressively to these situations, you’ll not be able to trade for a long time. Your trading journey will be short-lived. That is why professional traders claim that trading is more like a mind game. Even if you face losses, you have to be calm and try to trade better the next time. In fact, the Forex market is tricky and unpredictable, so it can change in the minute so the way you anticipated may go wrong. Likewise, changes are so quick and unplanned. Yet, as traders, you have to develop a calm mindset to become a great trader.
Reprogramming your mind
As a currency trader, you must learn to accept the loss. Though Forex trading in Singapore is a very popular profession a few traders can actually make a profit from this market. The majority of the retail traders are losing money since they take a big loss. In fact, they trade the market with negative risk-reward ratio without even realizing its consequences. Train your mind so that you can trade the market with high-risk reward ratio. Make sure you maintain at least 1:2 risk reward ratio in each trade. Just by following this simple rule, you can easily make a decent profit with a 50% win rate. Trading is all about precise calculations and execution of the perfect trade setups. Use your skills, do not act based on your emotions to become a successful trader.
Move forward, only if you have a plan
If you consider gamers who play mind games, they plan before they move forward. Even though they don’t have a written plan, they do the planning in their mind. This plan is executed when they play the game. Why do you think that they do it? Just because they want to manage the challenges in the games. However, if you are in the Forex market, it is the same story. You have to create a written plan to move forward.
Critical thinking is important
You can never play tricks when you are in the Forex market. But, it doesn’t mean you have no right to think critically. Many successful traders and encourage traders to think critically. When you think critically, your mind gets exposed to greater things, and you will be able to see the things from a new point of view.