Have you been trading Forex long enough to realize that there is considerably more to being a self-directed trader than it first appears?
If so, then you understand that there are several considerable challenges to be overcome to get to comfortable, consistent trading.
Many traders make the mistake of thinking that sticking to your system, keeping that discipline up, is the greatest obstacle to profitable trading.
But what many traders don’t realize is that the emotional flare ups that occur that make sticking to your rules and better judgment difficult are NOT a natural part of good trading.
The emotional flareups and subsequent errors in judgment are a symptom of a much greater problem.
Trading can be very deceptive, particularly to a person of above average intelligence, which most traders are.
On the surface, trading currencies can appear to be a very simple, almost easy occupation, one not requiring significant skills, certainly nothing apparent at first beyond simply being able to get in and out of the market profitably.
But trading is indeed a skill-based profession, with the skill sets required going well beyond that of executing trades.
Indeed, the greatest obstacle facing most traders is the lack of adequate and proper training to BE a self-directed trader.
As a result, most begin trading with real money knowing little more than enough to be dangerous, certainly lacking the skills needed to be fully self-sufficient and truly independent.
There are many roles you have to fulfill and each has corresponding skill sets, and when you are trying to do a job for which you lack the skills, your performance will suffer.
The lack of proper and complete training is the main reason that emotions flare, mistakes are common, and self-sabotage continues indefinitely.
One skill-set in particular that few traders possess is being able to properly evaluate a trading system prior to trading it live. This leaves you in the position of trading on hope or false confidence, not knowing.
If the system has flaws or functional issues, then doubt and anxiety will come up, whether you are consciously aware of the flaws or not.
An easy way to tell if this might pertain to you is if you with a calm, security or if you are tempted to deviate from your system or second-guess it with any kind of regularity.
When you’re properly trained and prepared, you don’t fight ‘psychological’ issues. You just go do your thing.
Develop yourself as a trader and make your life easier. Don’t just focus on ‘tools’ that keep YOU at your current level.
Guest post by Brian McAboy of www.InsideOutTrading.com