There are a number of reasons why successful traders can maintain their profitability. One of the most crucial ones is their emotional tenacity. Here we will discuss on how that particular matter helps them.

A Successful trader

Making good trading decisions is a fairly complicated matter. Once you feel you have made a bad choice, you tend to do other things in panic and consequently suffer more losses. However, many successful traders are able to be calm and get out of many crises relatively unscathed. One explanation is that they have strong emotional tenacity. In short, emotional tenacity is a positive behavior that indicates a trader's mental readiness to enter the market.

Some forms of emotional tenacity commonly possessed by successful traders are:

  • Won't miss a thing
  • Strong money management
  • Passionate
  • Stick to their trading plan
  • Evaluate themself

This kind of emotional tenacity is not easy. Many people know forex trading theoretically, but are unable to deal with it in reality. They thought they knew what it takes to succeed, but they failed when they tried it. Subsequently, they said that trading forex is like a gamble where you can only win if you are lucky.

Well, that's not true. Why would there are so many technical analysis out there, if what it needs is just simple luck? It is just that forex trading is unlike any other business where risk and trouble are relatively predictable. 

 

What Kind of Emotional Tenacity Does A Pro Trader Have?

How can we describe emotional tenacity in forex trading?

Emotional tenacity is the ability to persist and endure until you achieve the goals you have set for yourself. However, when you constantly find yourself emotionally drained, even the smallest goals may seem incredibly distant.

Emotional exhaustion robs us of many things, including our passion, inspiration, motivation, joy, focus, and self-trust. If we dwell on the frustration caused by the frequency of exhaustion taking away these things, we'll only become more drained from the energy it takes to remain angry. Not ideal.

So, you can try practicing emotional tenacity to get one step closer to becoming a successful forex trader. Slowly but surely, train yourself to do the following things:

 

Don't Miss A Single Thing

Changes in forex trading are very fast, and every trader has to follow them just as quickly. You don't have the time to check and recheck every piece of information that comes across. As soon as you get the signals we need, then we should move right then and there.

 

Money Management

Just as changes happen so fast, losses too, could occur in a short time. That's why, you should not trade with money you can ill afford. Also, don't bet on positions where the risk is higher than its profit potential. Manage your funds carefully so that you won't get in a temper when anything bad happen.

 

Keep Your Spirit

Afterward, be wise and don't be trapped in panic when something unpredictable occurs. Don't think you are good when you've just win once, be aware that changes could come anytime. Don't lose your spirit when you've just lost out on one chance, there are many others where you can gain them back. Hold on to your strategy, and never regret any decision. Remember that losses are not your fault. It is not even the market's fault, neither is another trader's fault. Loss is just loss. That's how the world goes around.

 

Stick to Trading Plan

The same applies to winning positions. Winning could tempt you to keep a position too long, hoping that you can gain more profits that way. Well, you may be winning now, but it is not a sure thing later. It is advisable for you to hold on to your trading plan; if it said to get out now, then close the position. You may feel regret if the trend's still go on for some time, but remember that there is also the possibility of reversal that you've avoided by closing it at that time. After all, it is quite impossible to know exactly where to enter and close position. We are not seers.

 

Evaluate Your System

A single big win doesn't mean that you are a good trader, just as a single bankruptcy doesn't mean you are a bad trader. What you need to do after a winning is checking up your trading strategy and make sure that it will produce more profits continuously, not just that once. However, remember that a good system is one that has high profitability, not one that always win. A good trader too, is one that has high motivation to succeed, not one who give up after a few losses. Learn from your wins and losses, instead of getting all emotional about them.

 

Remember, the outcome of forex trading depends on your own decisions, and the best decisions can only be made when your emotions are stable. That is the kind of emotional tenacity that successful traders have. Based on ThinkMarkets, if you have this kind of emotional tenacity, you will be one step closer to forex trading success.