{"id":548322,"date":"2023-04-26T13:30:02","date_gmt":"2023-04-26T11:30:02","guid":{"rendered":"https:\/\/ftmo.com\/?p=548322"},"modified":"2023-04-26T13:31:40","modified_gmt":"2023-04-26T11:31:40","slug":"the-psychological-aspect-of-trading-can-be-overwhelming","status":"publish","type":"post","link":"https:\/\/ftmo.com\/en\/the-psychological-aspect-of-trading-can-be-overwhelming\/","title":{"rendered":"\u201cThe psychological aspect of trading can be overwhelming\u201d"},"content":{"rendered":"
Psychology is one of the most important aspects of trading that affects virtually all traders. Mastering the ins and outs of psychology is one of the biggest challenges in trading. However, our new traders, Axel, Frank, Natalia and Ryan have managed to do so and have successfully joined our family of FTMO Traders.<\/em><\/p>\n How did loss limits affect your trading style?<\/strong><\/p>\n I taught myself to follow my rules and be careful not to become emotional. In the FTMO Challenge I reached almost both limits and when this happened I took a few days “off”, analyzed my trading and got back to following my rules. I think the Verification results and the second half of my trading show the change.<\/p>\n How did you eliminate the factor of luck in your trading?<\/strong><\/p>\n By using indicators, knowledge about time and effect of certain news. I have developed my own spreadsheet based on indicators – with a set of rules. Looking at the reports from my trading history just confirms to me – “Follow my rules !!”. From the FTMO Challenge to the Verification, I added a rule, which seems to improve my entry\/exit strategy. This rule change was based on the report FTMO sent me for my FTMO Challenge. Thank you.<\/p>\n How would you rate your experience with FTMO?<\/strong><\/p>\n Very good. 10 out of 10. All the YouTube information, interviews with other traders who are now FTMO Traders, weekly emails, and information on the FTMO platform. Yes, a lot of help\/information available.<\/p>\n What was the most difficult during your FTMO Challenge or Verification and how did you overcome it?<\/strong><\/p>\n Emotions and the psychology affecting you when the trade goes the wrong way. Follow your exit strategy and take the loss. Another perfect entry will appear in the near future where you gain back your losses and more.<\/p>\n How did passing the FTMO Challenge and Verification change your life?<\/strong><\/p>\n It made me happy, and I believe in myself that I have a system that will work in the future. My goal is to improve my system, make some money (not get rich) and increase my FTMO Account. I only trade one pair and I will test if the system works on another pair as well. The spread sheet I developed will tell me that, but it will take some time to enter and collect data.<\/p>\n <\/p>\n What is the number one advice you would give to a new trader?<\/strong><\/p>\n Test your strategy, be aware of how to manage emotions\/psychology. Use the FTMO Free Trial to test your strategy. Back testing and “forward” testing are not always equal I find. Also, make some rules, entry and EXIT that works with your system. Use Stop Loss and TP – works for me.<\/p>\n What does your risk management plan look like?<\/strong><\/p>\n Risk management has been a huge part of my trading success. I risk about 0.5%- 1.5% depending on market conditions. I always make sure to calculate my Stop Loss before each trade. My win-rate ranges between 30%-40% as I prefer to target a risk to reward ratio of at least 1:2.5.<\/p>\n Has your psychology ever affected your trading plan?<\/strong><\/p>\n The psychological aspect of trading can be overwhelming. There are several instances where poor psychology has made me close trades too early only to see the market move in my intended direction. But through awareness I realized that developing discipline and trusting my trading plan was the key in balancing my trading psychology.<\/p>\n Do you plan to take another FTMO Challenge to manage an even bigger capital?<\/strong><\/p>\n Of course! That is part of my long-term goals. However, in the meantime I want to focus my attention on consistency, growth, and development with my newly funded account. I plan to take another challenge whenever is appropriate.<\/p>\n How did passing the FTMO Challenge and Verification change your life?<\/strong><\/p>\n This milestone has been one of the most exciting experiences of my life. It was a journey that has taught me one or two huge lesson(s). These include strict adherence to rules in order to achieve a task as well as maintaining a high level of discipline owing to following the FTMO Trading Objectives. This has built in me a sense of confidence during trading. Moreover, I am also happy knowing that I have bigger capital to trade\/manage which could not have been possible with my own money. I believe that this is not the end of my story, but more success awaits me in the future. Ready to work even harder towards my journey as a professional trader.<\/p>\n Describe your best trade.<\/strong><\/p>\n This trade was on XAUUSD pair. I was super-excited as it gave a return of over 2% passing the verification stage. After in-depth analysis the day before, directional bias was unclear to me. Hence, I decided wait for the New York session. And as anticipated price gave me the required set up that I was waiting for. I took that sell trade with risk management and within a few minutes my profit target was reached. This proved to me the need to always trust your plan and execute with confidence.<\/p>\n What would you like to say to other traders that are attempting the FTMO Challenge?<\/strong><\/p>\n My huge advice to these traders is that they should treat trading as a business. This means doing things that a typical businessperson will do to grow their business. Have trading plan\/strategy, backtest it well enough and maintain the discipline to follow it. Lastly, they should understand that losses are part of the trading industry, but it is through that that traders discover themselves to become even better. Good luck!!!!!<\/p>\n<\/p>\n
Trader Axel: “Test your strategy, be aware of how to manage emotions\/psychology.”<\/h3>\n
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Trader Frank: “Risk management has been a huge part of my trading success.”<\/h3>\n
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