In this article, I will be writing about the crucial mindset and psychology you must have before you jump into the forex market. It is wonderful if you have already thought forex is a business but if you do not it like some people who have just come into the forex market and might not have this mindset and psychology, then, this article may be useful for you to get a better insight of the real forex trading in which I try to make it clear that forex trading is a business wherein business has potential gain but also potential loss through this article.
Business
People who have neither started nor experienced their own business and only see the good side of a businessman/businesswoman are just an observer. It is like when you see a businessman/businesswoman's food and beverage business soaring up in the sky and you start seeing that being a businessman/businesswoman is comfortable and profitable. In fact, those people forget about the bad side, such as the loss of money they have incurred due to bad management or even bad target market.
Forex Trading
Trading the forex market is difficult, I swear this because I have been trading since 2018 and just realized my mistake in my third year of trading exactly in 2021, which is, my psychological conditions were not strong enough to withstand the losing position or should I say unrealized position like minus that was happening to my forex account that made me exit earlier due to fear of loss and when the market went into my expectation direction I became greed and did not want to close my position which eventually led me to a losing position, thus, exit earlier again.
However, from that experience, I learned that I can have the best money management and analysis (such as bullish candlestick, hammer, trendline, and bla bla bla) but if I do not have strong psychological conditions to withstand the losing position due to fear and not want to close my position due to greed, then, my trading journey will be in vain. It is like a businessman/businesswoman who owns a restaurant business and cannot withstand the minus which eventually makes him/her exit the restaurant business.
Forex Trading Is A Business
As you already know that in forex trading, there are three main pillars, that is, money management, psychology, and your analysis (how you strategize to enter and exit the forex market). You might not realize it, but these three pillars are applied when you open a business. The business itself is in my point of view is someone or organization that initiates solving a particular problem to gain a return out of it. In forex, we try to trade the forex market by looking out for the future potential direction of the market using our knowledge and those three pillars. To have a better understanding you can see the example below here.
Just like in the point of Business in this article, this can be seen from the food and beverage business example where you have to know how to manage your money so that it will be managed properly and gain surplus on cash report (money management). Second, psychology, in this particular pillar as a businessman/businesswoman you have to understand what the market wants whether it is through supply and demand or customers' needs. Third, that is, how you analyze your business potential and make a strategy out of it so that your food and beverage business will survive in any conditions. This means that forex trading is a business and you have to invest your time to learn the forex market.
Conclusion
It is clear that when you trade the forex market, you have to have a businessman/businesswoman mindset in which you rely on the three pillars, that is, money management, psychology, and analysis where these three pillars will be useful to make your forex trading account survive in the forex market. Also, do remember that we have to admit that forex trading is not for everyone just like business because the chance of success is slim and you have to take it seriously if you want to trade the forex market or to make it simple not everyone can be as successful as Elon Musk, Bill Gates, and other big shots people.
Written by Andre I.
Reference
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