In my earlier entry, I listed five ways to tell if forex trading is taking over some aspects of your life. Here are five MORE experiences you can most probably relate to!
6. When you recognize a good opportunity, you grab it right away.
Missing good trade opportunities is probably one of the more painful experiences – perhaps even more frustrating than an actual loss – that every trader has gone through. I’m sure you’ve had one or two could’ve-made-my-year trades that you’ve hesitated to take and still regret to this day.
Sooner or later, you realized that there’s no use dwelling over “The One that Got Away” and that you’d be better off focusing this energy into being ready to take the leap when you spot another high-probability setup. This way of thinking can also influence how you make life decisions, as you become more conscious of and aggressive about once-in-a-lifetime opportunities. You’ve already thought about what’s the worst that could happen anyway, right?
7. You think in terms of probabilities.
When planning ahead for potential market situations, you know all too well that you should be focusing on the more probable scenarios. If a report comes in as you expected, will you add to your open position and trail your stop? If it misses, will you be ready to cut losses? Of course you’ve got the stops in place if anything unlikely happens since you’ve been trained to control your risk.
Some say that forex trading is a lot like poker since these involve thinking in probabilities. Apart from that, do you sometimes find yourself planning your day or week based on what might happen? Do you imagine different scenarios in your head and come up with back-up plans regularly?
8. You’re not too hard on yourself.
Drawdowns can be difficult to accept sometimes, as traders like you and me are naturally competitive. Sometimes you blame yourself for not keeping your eyes on the charts the entire time or not reacting quickly enough, but you also know that it’s the nature of the market to have a few surprises up its sleeve. At the end of the day, you remind yourself that there will be bad days just as there are good days. That’s just the way the cookie crumbles.
9. You’re more conscious of behavioral patterns.
As forex traders, we eat trends and patterns for breakfast. It’s a normal part of our daily routine to check how markets are doing so far and how price reacted in past events. Through these, we spot patterns that allow us to speculate on future price action.
Have you found that this has affected your general way of thinking as well? Are you more conscious of your restaurant recommendations to a friend since you’ve observed patterns in what he or she usually likes? Did you expect someone to come late to a dinner party since he or she has been habitually late anyway? This doesn’t mean to say that forex trading can turn you a judgmental person but that it can make you more observant of how people usually react and behave under certain circumstances.
10. You’ve learned to trust your gut.
Sometimes you get a very strong feeling that the market will move a certain way but you can’t quite explain why. And sometimes this “gut feeling” is enough to convince you to just take a trade out of instinct and it turns out a winner. Deliberate practice has probably been key in developing this kind of “trader’s instinct” that tells you to go for it.
You’ve probably experienced this a few times in your day-to-day life and perhaps you’ve ignored it in some instances. When your gut feel in forex trading has resulted to profitable trades more often than not, you eventually learn to trust and follow this instinctive feeling in general.