Summary of Forex Trading Insights

1. Remember that becoming a profitable forex trader is a journey, not a destination. There are no traders who only win and never lose. Strive to trade better each day and take pleasure in your progress. Focus on learning the craft and improving your trading strategies (skills), rather than just fixating on wins and losses.

2. As long as you execute trades according to your plan, congratulate yourself and feel at ease with the trade—regardless of whether it ends in profit or loss. Constantly reflect on whether you were correct (i.e., whether market movements align with your expectations. If not, it proves you haven’t fully understood the market or aligned with its trends and rhythm. In such cases, you must thoroughly reevaluate yourself, or you’ll lose big). The key point in trading is this: focus only on being correct, not on the outcome.

3. Don’t become overly complacent when you profit, nor overly discouraged when you lose. Try to maintain balance and adopt a professional perspective on your trades. Remind yourself that traders play with probabilities.

4. Don’t expect trades to always go a certain way. What you should seek is careful consideration of facts, not chasing rumors.

5. If your trading method signals a trade, but you fail to execute it and miss a profitable opportunity, the pain of watching from the sidelines far outweighs the pain of entering a trade based on your plan and losing money.

6. If you aren’t crushed by a major losing trade, then losses won’t have such a negative and lasting impact on you. Therefore, manage the risk of each trade carefully. Your life experiences shape your understanding of trading. If your first trade results in a big loss, you may stay away from the market for a long time—or even avoid that asset for life. The psychological impact of losing and failure is far greater and longer-lasting than physical pain.

7. Educational background plays a significant role in shaping how traders view futures trading. Formal business education gives you an advantage in understanding the broader economic and market landscape, but it doesn’t guarantee profits. Most knowledge gained from formal university education doesn’t provide the specific skills needed to become a successful forex trader. To win in forex trading, you must learn to perceive opportunities most overlook and uncover the essential knowledge for successful trading.