70 percent of Forex trading success is psychological and emotional control. The challenge for most traders, both new and seasoned, is finding ways to suppress the negative energy that could endanger their trading success or direct that energy elsewhere.
While a trader may be able to focus on learning how to actually trade, it is not so easy for many traders to focus on taming their emotions in order for them to avoid bad trading habits. Even a trader who knows and understands every technique can struggle to make profits because they are psychologically hindered. There a number of ways to free oneself from the emotional constraints one can experience during trading, and one way is through meditation.
This articles is not to teach you how to meditate, but rather how participating in it can improve your trading results. Meditating is the practice of concentrated focus. And it is this practice of focusing that can do wonders for emotional management as a trader.
Meditating directs your energy and focus on something other than your stress. It can incorporate visualization, sounds, breathing, movement or an object to focus on. This promotes relaxation and stress reduction.
A Forex trader can experience high levels of stress while they trade. They are focused on earning, increasing profits, preventing loss, keeping up with both technical and fundamental trading techniques and updates. All this causes a great deal of stress that can take you out of the zone of trading successfully.
Mediating can help put up back in the zone. It helps to center you, allowing you to become more aware of the present moment and open yourself up to growth. Your heart rate decreases, your breath becomes more controlled and your focus becomes sharper. The more focused a trader is, the better they will trade. They won’t be stifled from making trading decisions based on fear or commit trading sins as a result of greed. This leads to more consistent profits and more relaxed trading.
A relaxed trader is a zen trader. They do not let their emotions get in the way of good trading. They accept losses and look for ways to prevent their trading mistakes. Zen traders trade in the zone. Trading in zone is when trading feels natural. There are no mental hurdles; there is no paralyzing fear or gambling rush. It’s a state of being, where you are doing what you need to do without needing to think.
A trader’s best focus is found in the zone. A good way to find your way to the “trading zone” is to practice mediation techniques that promote focusing and learning how to direct negative energy away so you can trade with confidence.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer