Let's relate our mistakes to Forex education. First things first, it's common sense that mistakes can turn into a positive learning experience. And also, they can help develop our skills while performing a task given to us. But in reality, it appears that learning from errors is hard to achieve because traders do not usually learn from their mistakes. Instead, they just keep on repeating them all over again.
Now, for instance, a trader is starting to lose at the day trade, and the trader decided to widen stop loss. However, the trader knows that the decision made was a mistake. But still, the trader continues out of panic and results in doubling the risk. Nevertheless, the trader will go on and will adjust. After that, the trader might add more funds to sustain it longer in the later stage.
In the initial journey on the trading industry, this type of dilemma happens frequently. And many traders get trapped in this situation. If a trader can't properly handle emotional stress, and clueless on managing a critical moment, this might result in committing the same mistakes and wrong decisions.
The problem is, making mistakes does not happen once. But why do traders keep on repeating them? The answer is simple, and it's the way brain responses to errors.
Brain's Responses
Furthermore, in Forex Education, one type of response mind does is when making a mistake, in trading or not, is the wake-up call. In here, the problem-solving skills are awakened. Usually, it will process every single detail on what happened and the factors that caused the unwanted situation.
Also, in connection to that, there is a phenomenon called post-error slowing. In here, attention sharpens, resulting in a long time to come up with the next step or a solution.
Another possible response is the complete opposite of the first one. The brain shuts down completely because it perceives the error as a threat. And to prevent the discomfort feeling the mistake gives, the mind creates its own escape strategy. Usually, this happens to traders who focus more on positive feedback.
Now, if you think a brain responded this way, try to rationalize, justify, or selectively omit information that shows something is wrong by attributing the result to external factors.
Record Sheet
The last topic of this Forex Education is all about noting every mistake. Start by creating a trading error record sheet. Then, make this as a part of a trading journal and jot down every unfortunate event the occurred.
But always remember that dwelling in the previous mistakes will never improve a person as a trader. Instead, practicing on how to nurture a higher awareness of inner workings and precise planning is where the improvement starts.
Learn everything about the trading market with ProfitStar Forex Trading Online Education. Join us and be a part of our pro-trader team!
Now, for instance, a trader is starting to lose at the day trade, and the trader decided to widen stop loss. However, the trader knows that the decision made was a mistake. But still, the trader continues out of panic and results in doubling the risk. Nevertheless, the trader will go on and will adjust. After that, the trader might add more funds to sustain it longer in the later stage.
In the initial journey on the trading industry, this type of dilemma happens frequently. And many traders get trapped in this situation. If a trader can't properly handle emotional stress, and clueless on managing a critical moment, this might result in committing the same mistakes and wrong decisions.
The problem is, making mistakes does not happen once. But why do traders keep on repeating them? The answer is simple, and it's the way brain responses to errors.
Brain's Responses
Furthermore, in Forex Education, one type of response mind does is when making a mistake, in trading or not, is the wake-up call. In here, the problem-solving skills are awakened. Usually, it will process every single detail on what happened and the factors that caused the unwanted situation.
Also, in connection to that, there is a phenomenon called post-error slowing. In here, attention sharpens, resulting in a long time to come up with the next step or a solution.
Another possible response is the complete opposite of the first one. The brain shuts down completely because it perceives the error as a threat. And to prevent the discomfort feeling the mistake gives, the mind creates its own escape strategy. Usually, this happens to traders who focus more on positive feedback.
Now, if you think a brain responded this way, try to rationalize, justify, or selectively omit information that shows something is wrong by attributing the result to external factors.
Record Sheet
The last topic of this Forex Education is all about noting every mistake. Start by creating a trading error record sheet. Then, make this as a part of a trading journal and jot down every unfortunate event the occurred.
But always remember that dwelling in the previous mistakes will never improve a person as a trader. Instead, practicing on how to nurture a higher awareness of inner workings and precise planning is where the improvement starts.
Learn everything about the trading market with ProfitStar Forex Trading Online Education. Join us and be a part of our pro-trader team!