It’s not just about the Forex trading plans and strategy that has gone wrong, sometimes, the unmet expectations result in unbearable losses. Unfortunately, the most common mistakes of traders come from their unrealistic expectations. An example of this is believing that you will win over your trades all the time. You may not fully accept it but from deep within, you know that this is impossible to achieve. Yet, you still choose to place a trade hoping that you will still end up becoming a winner.
If your expectations are left unmanaged, it can harm your trading account significantly. In FX trading, there are two kinds of expectations;
- Expectations that happen WHEN you are trading
- Expectations that happen OF trading
These two expectations are also accompanied by different problems. An example of the expectations that happen OF trading is when you invest $300 on your account and expect it to grow to a million within a week. Although this is not entirely impossible for expert and professional traders, the case is not the same with beginner traders. You need to take on huge risks if you are planning to achieve this huge win.
When a beginner trader starts to take a large risk, he is giving in to expectations and ready to blow up his trading account. And since he is new to trading, he isn’t aware of these things. He just believes that he can make a million after a month.
Keeping Expectations In Line With Reality
There are few things that you can do to maintain realistic expectations.
Expect the Worst All The Time
Expecting the worst in trading is a very good way to keep your expectation in line with reality. If you think that in every trade you enter, you will lose, you’ll be surprised if it gets a positive turn. Expecting the worst can also be done when it comes to analyzing the different technical tools. If you are not expecting anything grand, your mind is open to all possibilities that the market may offer. With that mindset, you are at the most productive state and you can take advantage of that when the market eventually hits the support level you have set.
Keep The Risk At A Minimum
Another way of keeping your expectations down is to risk as very little money as possible especially if you are new to trading. This is easier said but hard to do. But taking into account the market and the uncertainties with it, you will understand that the risk ratio is something that you should never neglect.
Work Your Way To Success
Don’t abandon your corporate job. If you want to limit your expectations to the minimum, you should distract yourself by going to your regular job instead of spending all your time in front of the screen. If you just stay at home and watch your trades, you will most likely come up with high expectations on the market, therefore affecting your trades. Working will keep you from experiencing this problem. You will also avoid other mistakes caused by too many expectations in Forex Trading if you do so.