Get in the right mindset for trading.
Open your trading platform to an asset that you normally trade. Look at the last candlestick. Do you think the next one will close higher or lower than the current one? How about the one after? If you use any analytical tools what are they telling you? Do you have an idea of where the next few candles will take the price of this asset? Perhaps your various methods of analysis, such as technical indicators, trend lines or candlestick patterns, are telling you something about how high or low the current price is, relative to recent price action. Maybe this information is not directly related to the forex trading psychology, but it could provide you with an insight of what is likely to happen to the price in the forthcoming minutes/hours/days.
Mistake 1: You trade practically non-stop, trying to open as many positions as possible. You constantly sit in front of the platform and try to catch even the slightest price changes. What it leads to: Your action begin to become more chaotic, leading to negative results. This is due a potentially large number of rushed trades and irresponsible money management. How to avoid: Remember that the financial market is the place where the number of open trades does not matter. It is better to practise quality over quantity.
To be competent means to have the necessary theoretical and practical knowledge in order to engage in stable and effective trading. However, this is not enough for a real breakthrough: you need to become a master – i.e. gain an understanding of the connection between "knowledge" and "action". Competence is necessary but not enough to be considered a master.>
The more you research into human cognition, the more questionable you become about what you take for granted. Features of your mind that you may have regarded as utterly rational, are demonstrated as huge cognitive blind spots that we're actually all afflicted with to some degree. Once you realise that your decision-making faculties, your ability to categorise incoming data, and even the veracity of your own memories can be compromised, it becomes clear just what a monumental project becoming a trader is.
