In fact, these unforeseen events can go beyond the economic arena and also come in the form of natural catastrophes or a sudden declaration of war.
Maybe.
2. Trading is a game of probabilities
Even if you watched the charts constantly, stayed on top of the forex calendar, and listened to the news every day, you still probably wouldn’t see those events coming.
Feeling out of sorts from your recent losses?
By keeping this frame of mind, you ease the pressure on yourself to always be right about what the market will do next or having to take a loss. In doing so, you overcome the fear of losing money, which is inevitable to every trader as losing a tooth is to every person.
Here are truths about forex trading that you may have forgotten:
1. Expect the unexpected
Playing the probabilities in forex trading implies two important things:
- You must always make sure that the odds are in your favor before putting on a trade.
- The cost to find out if that trade is right must be compensated by probability.
Let’s say EUR/USD is trading at 1.1000, just testing a major support level. You know that you cannot predict where the price will go, but you do know that price has a higher probability of going up than going down since this support has strongly held in the past.
Once you are at peace with the possibility of losing money, you will be able to recognize all kinds of information that both support and argue against your market views and beliefs.
You may lose, which is okay because you have already expected it and know the costs associated with it.
I understand very well that taking a chill pill amid emotional highs and lows is hard to do. But perhaps taking note of these “truths” will help you cope with the uncertainties that you encounter in the market.
Think about it. If you acknowledge the fact that just about anything can happen, how can you be wrong about the market?
منبع: https://www.babypips.com/trading/2-truths-about-forex-trades-2023-11-22
If you’ve felt your heart skip a beat and your breathing slow after a loss, then you probably know what I’m talking about. Think about your ego, my dear Padawan.
Face it. No matter how much effort you put in your analysis, you still won’t have a hundred percent accurate idea of where the market is headed.
When talking about risks in trading, most of the time you will limit your definition to money terms. But the truth is that it is not only your wallet that you put on the line whenever you trade.
Unless you’re Nostradamus…
In keeping these two “truths” about forex trading in mind all the time, you’ll gain a psychological edge and cope with losses better.
You could also win, which you already are expecting too. Nothing can be more heartbreaking than unfulfilled expectations.
