It is the most important concept you must learn in order to become a successful Forex trader. If you can master this skill, you will be able to succeed in this Forex business. But without it, you are bound to fail. It is that simple. If you can learn to trade to your best interest, you will make a lot of money. If you don’t, then you will lose a lot of money.
Trading is very different from everything else we do in life. In our everyday life, we can have control on anything that will affect the result we want. For example, if you want to listen to the news, you could turn on the radio by pressing the power button and the news will come out of the radio. If the power button is not pressed, the radio will not turn on.
Let’s take another example. If you wanted to start your car, you put the key in the ignition and turn it, the car will most likely start because you did something to affect that change. If you don’t turn the key, the car will not start.
Everything we do in our everyday life can affect the changes that we can consciously making it happen. But, in Forex trading, you cannot control what the market will do. No matter how much you want the market to go in a certain direction, there is nothing you can do to make it go in that direction. There is no way that you can control the market to go the direction that you want. There is no button, no key for us to press or turn. You cannot make the market do what you want. Nothing at all!
So, if we cannot control the market and what it will do, then the only way that will make us successful is to control ourselves. It is easier said than done. But it is the reality of a successful trading. Again, you can’t control what the market will do, so you must control what you will do.
I think that is why many traders failed. Most of them never learn the proper skills they need to be successful. Many focus so hard on finding the perfect technical method or mechanical system, and very few do not realize that it is just half of the battle.
You have to learn to trade to your best interest which is much more important than finding the perfect technical method. As someone has said, “A person with good self-discipline but a poor trading method will outperform a person with poor self-discipline but the best trading method currently available.” From what I know, I believe that it will work every time if you are disciplined.
Here is my proof from the past trading experience. I recall at one time I had over 50 pips in profit. But even with that huge profit, I still lost money on the trade. Then I asked myself, how come? It must be at that time my mind was telling me to wait for the big home run. Now I realised that I am not trading to my best interest. What I should do is to trail my protective stop order to lock in some profit.
It is natural that we all want those huge winning trades. But one thing we forgot that we cannot control what the market will do and we must be prepared for the worst. Thus, we should learn to have our best interest in mind and not allow all of the profit to evaporate, even if that means missing out on the big winner.
“Learning is the beginning of wealth. Searching and learning is where the miracle process all begins. The great breakthrough in your life comes when you realize it that you can learn anything you need to learn to accomplish any goal that you set for yourself. This means there are no limits on what you can be, have or do. ” -Albert Einstein
What do you think of this article? Do you trade to your best interest? Please share your trading experience with your comment.