Forex Traders - Your Psychological Makeup

Your individual psychological makeup will make the single biggest impact on your trading results. It’s not enough to understand the market; you’ll also need to understand yourself as a trader.

Aggressive Or Non-Aggressive?

Take some time to figure out whether you are an aggressive or non-aggressive trader. If you are a naturally non-aggressive trader, an aggressive trading system will never feel right to you and will most likely cause you lots of stress and frustration. As you can see, choosing the right system according to your psychological makeup is crucial for increasing your trading productivity.

There are many ways to trade the market. Be patient and choose the right approach for you.

How Much Technical Information?

Another aspect of your psychological makeup is the amount of technical information that you’re comfortable with handling. The ability to stick to a trading system may be lost if you feel overwhelmed by too much technical indicators and information. You’ll thus need to determine exactly how much or little market or technical information is enough for your own comfort.

To do this, ask yourself what benefit you’ll get from an additional piece of technical information. Will this information help you to better time your trades or improve your trade winning probabilities? If not, then don’t waste your time. Don’t let superficial information clutter your thoughts and distract you from the important trading decisions that you’ll have to make.

Keep your information tools clean, clear and concise.

Environment

This is one aspect which many retail traders ignore. You’ll need to determine just how much or little environmental stimuli is need to maintain your top mental trading performance. Some traders like having sights and sounds around them while others prefer quieter, tranquil surroundings. Having the right environmental surroundings can substantially help improve your mental alertness and well-being when trading.