It is true that the expectations we have for ourselves play a central role in affecting our emotions and even our actual experience. In particular, waiting for a good result makes us feel excited while foreseeing a negative result makes us worry.
This is why forex trading psychologists have highlighted the importance of setting the right expectations in order to have the proper trading mindset. When you set expectations that are too high, you could be setting yourself up for failure and disappointment. On the other hand, when you set your expectations too low, you might not be doing enough to challenge yourself.
The first dangerous assumption is that hard work means taking more trades. This expectation does not take the quality of trades into consideration. In addition, it could make one prone to overtrading as it assumes that a bigger number of trades will someday turn into higher profits.
The second dangerous assumption is that a trading is good only if one had a profitable day. The problem is that a trader might end up being to hard on himself if he undergoes a losing streak. This is problematic because losing is inevitable in trading and that a losing trade isn't necessarily all wrong. It may have simply been a result of a sudden shift in sentiment or unforeseen market factors. As long as you did your homework and followed your trade plan, you can still consider a losing day a good one.
The last irrational trading expectation is that the measure of success in forex trading is being able to live off the profits. Remember that not all traders are able to end up this way, as it requires a huge amount of skill and capital.
Remember these irrational expectations so you can prevent them from taking their toll on your psyche and actual trading performance.
This is why forex trading psychologists have highlighted the importance of setting the right expectations in order to have the proper trading mindset. When you set expectations that are too high, you could be setting yourself up for failure and disappointment. On the other hand, when you set your expectations too low, you might not be doing enough to challenge yourself.
The first dangerous assumption is that hard work means taking more trades. This expectation does not take the quality of trades into consideration. In addition, it could make one prone to overtrading as it assumes that a bigger number of trades will someday turn into higher profits.
The second dangerous assumption is that a trading is good only if one had a profitable day. The problem is that a trader might end up being to hard on himself if he undergoes a losing streak. This is problematic because losing is inevitable in trading and that a losing trade isn't necessarily all wrong. It may have simply been a result of a sudden shift in sentiment or unforeseen market factors. As long as you did your homework and followed your trade plan, you can still consider a losing day a good one.
The last irrational trading expectation is that the measure of success in forex trading is being able to live off the profits. Remember that not all traders are able to end up this way, as it requires a huge amount of skill and capital.
Remember these irrational expectations so you can prevent them from taking their toll on your psyche and actual trading performance.
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