The Mental Condition & Forex Trading: A Dynamic Duo
It might be a common mistake to think that successful trading happens in a vacuum. Just like a well-oiled machine, everything is connected. If you do not take care of your mind and general well-being then other factors in your life such as trading will get affected. Pick up 5 tips how you can train your mind to have it at its sharpest so that your forex trading is always on point.
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- Why is nurturing a healthy mental condition so important for trading?
- Pick up 5 tips on how to train your mind to be efficient while trading on the live markets.
Most traders think that all you need to be a successful trader is to update themselves with the latest news, study their charts and take well-informed decisions. By just doing these, they should well be on their way to placing profitable trades, right?
It might be a common mistake to think that successful trading happens in a vacuum. Just like a well-oiled machine, everything is connected. If you do not take care of your mind then other factors in your life will be affected. Trading definitely falls within one of the sections that is deeply affected if you are not taking care of your mind.
Trading requires long hours of sitting down in front of a screen, poring over numbers and analysing charts. Just like a singer needs to take extra care of their vocal chords or an athlete trains their body religiously, a trader’s mind is his or her most prized possession. Making sure your brain remains sharp and unaffected by emotions can make or break your trades’ track record
So what can a trader do to make sure his mental condition is at its best when trading? We present you with 5 tips on how you can train your mind to have it at its sharpest. This will help your forex trading stay always on point and your trades remain consistent. Are you ready to discover your newest weapon for the financial markets?
Tip #1: Exercise Your Body So That Your Brain Will Catch Up
You might be tempted to keep observing the financial markets while they are open. However, sitting down for long periods of time focusing on one thing might be counterproductive. Your mind is bound to start clouding over and important details might go unnoticed. Instead, take a break from your screen and take a walk or go for a run. The increased endorphins generated, as well as the tension released when you exercise, will help your mind focus on the things that really matter.
Tip #2: Eat Healthily
This tip ties in perfectly with the previous one. It might sound cliché but a healthy body does equal a healthy mind. Research has proved that certain types of foods do in fact boost concentration and helps keep your mind sharp. Fatty fish such as salmon, trout, tuna and herring are rich sources of omega-3 fatty acids. Because your brain is made up of 60% fat, half of which is omega-3, these types of fats are useful to build brain and nerve cells and are essential for memory and learning.
Tip #3: Try To Keep a Positive Attitude
Trading can be a rollercoaster ride regaling you with a number of emotions. Just because you experience a loss does not mean you will remain on a losing streak. The opposite might well be true. Remaining calm and positive is an impressive trait that can be easily witnessed in traders who consistently place successful trades. Yes, it might be hard to keep smiling when things are taking a downward turn. However, as in life, keeping a positive mind frame flushes out negative energy that might affect your trades. The age-old trick to keep smiling does work! In the face of adversity, ignore your emotions and plaster a smile on your face. In time, the dopamine released will fill you with positive energy, making your body catch up with your mind and filling you with positivity. Go on, try it!
Tip #4: Incorporate Meditation As Part Of Your Daily Habits
We have already advocated this indispensable trading habit previously but when a piece of advice is good it should be repeated. Meditation is increasingly becoming a popular choice for people coming from different backgrounds and ways of life. Practicing meditation every day nurtures mindfulness. Mindfulness is when you focus on your present situation and state of mind. Awareness is key here as it helps you become aware of your surroundings, emotions and breathing. Becoming aware that your thoughts and feelings are detached from you and are just that can help you keep perspective when trading. We already know that emotions can interfere with your trading. Meditating every day can help you trade more successfully with a healthier and sharper mind.
Tip #5: Maintaining A Healthy Work-Life Balance
When you enjoy something immensely it is very easy to lose track of time and continue doing that particular activity. Lots of traders report that when they are in the zone they can go hours trading on the live markets, even forgetting to eat and drink. While this is great as it means that you are losing yourself in trading, the flip side is that the balance can slip and the weight of the scales starts tipping towards one side. Make sure you take frequent breaks from your laptop, completely switch off your mind from trading during the weekends when the markets are closed as well as spend quality time with family and friends. This will leave you feeling revived, lending some much-needed positive energy when you return refreshed to your desk and ready to trade.