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Do your best to analyze the market and let go of the outcome

 
 
 
 
 
 
 

A lot of things in Forex trading and generally in our lives are simply outside of our control.

The currency market is so large that absolutely no one has enough capital to be a factor that can single-handedly move it. No individual trader, no institution, no hedge fund or bank is big enough alone to “control” the outcomes in the Forex market. Everyone that trades in this market has losses and that’s just part of the game that we must all accept no matter how much we may dislike it.

analyze the Forex market

You may have the perfect signal, or in fact, a multitude of signals - all converging and agreeing that a particular currency pair should be moving higher or lower. Nevertheless, there is always some probability that any signal or setup will fail and the market will go in the opposite way. But the important thing to realize is that we can not control the outcome of the trading setup and therefore the chance of being wrong should not disturb us.

A good principle in life that is also very true in trading is to do your best on the matters that you can control and then to just let go of what is outside of your control in expectation of the results. The market will decide where the price moves and it will always do what it wants to do regardless of how anyone feels or how much he/she worries about the price swings.

In trading, the point is to do your best on the things that you can control – such as analyzing the currency pairs, staying updated on the fundamentals and adopting the proper risk management procedures for each trade (like placing stop losses and trading with the appropriate lot size). - Really, that’s the best you can do if you want to be able to sleep at night, but also if you want to be profitable and successful.

Your job as a trader is to do your best in analyzing the markets, take the appropriate decision based on the analysis and then to let go of the outcome. That’s it!

Your job is not to worry about things that are outside of your control. And where and when the market will move is completely outside of your control! In fact, realizing this simple and powerful truth can be a very liberating moment and a turning point in one’s trading journey. - Analyzing the market in the best possible way is within your control as is taking a long or a short trade and placing stop and target levels. But, beyond this, all we can do as traders is sit back and watch the market do its thing.

If you don’t let go of the outcome, you will probably get into the trap of overreacting to small details which will inevitably cause you to take action on your trades (the wrong one most likely).

It’s these kinds of situations that cause you to turn a winner into a loser or cut a great trade prematurely and miss out on a big chunk of the profit.

Forex psychology

Worrying about outcomes is never helpful - not only in trading but in most, if not in all areas of life. Staying positive and focused on what is within your control is always a much better approach.

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