Addiction to forex trading (3)

My experience so far says that dependent people can hardly overcome the problem themselves. In some cases, it is simply impossible.
Some would say to follow certain rules in deals, others to keep a diary, and third to take a rest. The latter is the right one for me, but rest under changed conditions. Do not just say, "Ok, I will not trade, I'll do it." Human instincts and inner desires are much stronger in most cases by the will. So, you have to outsmart them. I only think of one way and it is to go to a place where you do not have proper trading conditions (no computer) and you also have to have the right conditions for other activities - sports and anything else to distract you from forex.

Addiction to forex trading (2)

Is there a passion or is it just addiction? You realize that addiction to a certain activity happens when a person is completely dependent on it. This behavior is usually shown by people who are constantly looking for the activity no matter what negative consequences it have brought to them. What is worse is that people who are addicted can not stop the activity even though it ruins their lives.
How would you recognize if you are already dependent on forex trading rather than simply taken over by it. Ask the following questions:
Do I often trade even after I told myself to stop?
Does Forex trading create problems with my relationships with other people?
Does Forex trading has created me financial problems?
Has anyone ever told me I trade too much and that I have to stop?
Have I tried to get my losses back by increasing my deal size?
Is there a case when I trade just because I'm bored?
I am sure that once you answer these questions, you will be able to realize whether you are dependent or not.

Addiction to forex trading (1)

To be honest, most of us are attracted to the world of forex trading because of the potential profit of big money, with the ability to exercise the brain and the will. For some, the second comes in the background, as it is more preferable to make money.
There are times when traders just want to take the money, which blurs their judgment on the forex market. Exactly then, trading has the potential to become addictive, potentially damaging both the brain and the soul.
Imagine it, let me tell you a story of a trader who ended up emptying a whole account for the third time in a row. However, he is persistently looking for a new real account. He even thought about getting closer to companies to manage their money with the belief that his passion for trading magically will turn into profits.
To make matters worse, this day trader has a family to endure. No matter how much money he has lost, he does not go back to study the market or reform his trading plan. Instead, he takes from family savings to open a new real account.

What can we learn from poker?

It can be said that poker players have qualities that can fit into the world of forex trading. Risk management is one of them.
In a poker game, the player strives to increase his balance by making calculated bets based on his cards. Like in Forex, the goal is to increase your capital by risking some of it.
In both cases, the trader needs to know what risk he can take to stay in the game. If he does with "all in", he will either raise his account several times or leave the table early, betting everything in the trading can lead to a blank account.
Apart from the importance of how much you risk, it is important to know when to risk. Poker players wait for good hands to risk. The same is valid for forex.

Forex and Poker

Here's what a friend told me about the common between forex and poker, he's been dealing with both for quite some time. I hope that it will not be difficult to deal with poker terms.
"Most profits come from selected initial cards. When I first started with poker, gamble each hand, thinking that the blinds will have a great impact. Over time I realized that they would fold more times, but more importantly, you will not lose money by playing every hand. I did not realize how much money I lost in entry with small stakes. Once summed can see that it's best just to play with good initial cards.
Poker is probability and skill. Luck has little influence. A strong initial hand can lose its edge after the flop. This is the reason to see the same faces at the final table, though, everyone knows the rules and what are the best initial hands.
After a few years of watching graphics, I know that good deals are less frequent. They are like good starting hands and you have to be aggressive with them. But you do not know how your good hand will lose on the flop. You have to play the deal correctly as you always think about closing the deal even if the reversed card reinforces your hand. I have seen many people bet everything in good hands, but you know they will lose when the flop opens."

Forex preparation (3)

Develop your discipline.

Fill a record of your transactions in a journal, it's the most useful habit, that you can build. The documentation of transactions will allow you to review your rules, to find mistakes and can even serve as a source of ideas. It will also help you avoid the same mistakes in future transactions.
Be detail-oriented! Pay attention to details. As John Wooden avoided injuries as directing his players how to shod socks in a special way, so dismissing small details can seriously affect your trades.

Forex preparation (2)

"If you fail to prepare, then you are prepared to fail" - John Wooden said. For those who do not know who he is, here's a brief summary:
John Wooden is considered by many to be the greatest coach of all time. He has won 10 national championships in men's basketball. Wooden is not only famous for his victories, but rather for his approach to basketball and life in general. He was always prepared and paying attention to the smallest details, no matter how insignificant they looked.
An example is how he taught his players to be shod socks properly. That's right, even wanted them to put thrm in a specific way. The reason? He did not wanted any creases, which can cause blistering and potentially injure his players.
Wooden felt that a man should give all of himself into anything, and this part is always the first thing, that is under his control. Wooden so always came prepared.
Surely these principles can apply in forex trading. What habits must we develop to be prepared?

Forex preparation (1)

In forex trading there is only one thing over which we have control and that is ourselves. The markets move in different ways. Sometimes we win from trading, sometimes we lose, but when we draw the line, what remains is under our control.
Of course, when we are in chase for good ideas, we devote our time in analysis and research, but there will always be unexpected market events that happen out of nowhere. Here is where preparation and proper implementation of the deal becomes crucial to reduce potential losses from unexpected events.
The preparation includes optimal risk-profit ratio, placing of good stops, determining the size of the position based on the risk and stop and strong stick to our trading plan. These are aspects that are under our control, and if we want to be the best, we have to do everything, that depends on us to do this.

Look for part 2.