Impulsive trading is really a problem which needs to be solved at the earliest possible. Otherwise, it can increase the chances of losses that will eventually become heavier as a trader progresses. A trader should have a clear plan and should remain disciplined to avoid impulsive trading. It is about controlling thoughts and emotions while trading, which is the key to successful forex trading.
Develop your trading psychology. Make a trading plan and stick to it, so that you do not have the reason to over trade. Make a fixed number of trades in a day, and open only one trade at a time. Building your discipline will also help you stick to trades and prevent from over trading, or trading impulsively.
There are a few things you can do to help avoid impulsive trading. One is to keep an open mind and be patient when making decisions. Another is to always have a plan, and stick to it once you’ve made your decision. Finally, make sure you research the products you are considering before making a purchase. By doing this, you can reduce the chances of buying something that won’t serve your needs or will end up costing more in the long run.
For those who struggle with controlling impulsive decisions, it is said that organising and following a plan can help structure thoughts and can help in minimising irrational decisions. Take a break when you are losing yourself and come back with a fresh mind. There’s nothing better than a trader who knows how to cut their losses and still manage to make profit.
To avoid impulse trading 4 simple tips: 1.First, don't use any market orders for trading. Try to adjust your strategy if possible to use pending orders so that you just put the pending orders in your MT4 account with stoploss and take profit and close the terminal and allow the trades to be executed automatically when price reaches such levels. Next, open the MT4 terminal once or twice every day and adjust or close the trades as per trading your plan. That's it.
2.If the above step doesn't work, then choose a specific time of the day for trading like London session, New York session etc and trade only during that time as per your trading plan.
3.Don't try to memorize your trading plan. Write down your trading plan in a piece of paper or at least on your computer as a file in very simple format like A,B,C,D or 1,2,3,4,...etc which will clearly define your trading plan to anyone without any ambiguity at all and just follow that.
4.If none of the above step is suitable for you, then just implement your trading strategy into a MT4 expert advisor which will execute your trades at a specific time with stoploss, takeprofit , trailing stop and everything else and you just launch the MT4 terminal during that time and don't interfere too much with the trades placed by the EA until and unless absolutely necessary . That should be very simple:))
I hope either one of the above steps or all the above steps will work for 99% of traders to avoid impulse trading.
Impulsive trading can be avoided in an easy manner. Traders need to focus on following their plan, with which they entered the market with. When you have a set order in routine, it gets easier to decide when to wait and when to move. If traders feel out of control, they should take a short break and resume trading when they’re in a better space.
Impulse trading can occur due to lack of knowledge and patience. Traders need to learn the importance of management so they can create a plan, budget and move in the right manner. Impulsive decisions can only lead to blown accounts which in turn means quitting. Hence, if traders analyse the market and move slowly, they can safeguard their future in the marketplace.
ADVERTENCIA DE ALTO RIESGO: El comercio de divisas implica un alto nivel de riesgo que puede no ser adecuado para todos los inversores.
El efecto de apalancamiento crea un riesgo adicional y una exposición a las pérdidas. Antes de decidirse a operar con divisas, considere cuidadosamente sus objetivos de inversión, su nivel de experiencia y su tolerancia al riesgo.
Podría perder una parte o la totalidad de su inversión inicial. No invierta dinero que no puede permitirse perder. Infórmese sobre los riesgos asociados al trading de divisas y pida consejo a un asesor financiero o fiscal independiente si tiene alguna duda.
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