The world of forex trading is dynamic with lots of changes taking place every time. This means that without a proper mindset, it becomes quite tasking to maneuver the industry successfully and avoid running into unimaginable losses.
Failing to realize success can lead to terrible emotional meltdowns you wouldn’t wish to experience.
As much as forex trading calls for total concentration, as you follow your trading plan and read signals for impressive profits, distractions are a necessity for traders.
The forex market is intense and traders cannot afford to lose focus of the numerous changing patterns that take place. In fact, it is quite easy for traders to get lost in analysis paralysis, a situation that tends to lead to losses from time to time.
No trader wants to go through this experience.
But distractions can sometimes be helpful in forex trading. Once a trader has successfully placed a trade, it is important to take a step back and keep the mind off things. If there are no distractions, the trader will again engage themself with the market and complicate the analyses.
In fact, the need for traders to keep off the markets to give their minds a break cannot be overemphasized.
Here are 5 reasons why distractions can sometimes be helpful in forex trading.
1. Our Minds Need Rest
The human mind can get fatigued if it continuously works without a break. Rest is mandatory if you want your mind to stay fresh and in perfect form for analysis and decision making. Imagine encountering complex market analyses with a worn out mind!
The engagement with the market may look simple, but only investors know the battle. The moment money has been invested, it is inevitable that sweating will ensue. Working in a demo account might not be as bad, but once you get trading on a live account, the issues get real!
You don’t want to use a fatigued mind trading on a live account. Take a break each time you spend some hours placing trades, if you don’t want unpleasant surprises. Your mind needs it.
Read a newspaper about other non-financial happenings, take your dog for a walk, spend time with your family, relax. In short, let your mind rest.
2. To Break Bad Addictions
Forex trading can be quite addictive, and if not checked, a trader might run into insurmountable losses and still continue placing trades hoping that the trend will change.
Distractions will help you break these bad habits.
If you don’t want to continuously lose a significant portion of your investment to high-risk trades, close the trade and find a distraction. This will save you a huge deal of money.
For example, when trading using the SaxoTraderGo trading platform, distractions act like small breaks and allow the traders to increase their focus.
You are here to make money. But any slight misjudgment on your part can lead to unprecedented losses. Understanding forex trading psychology and disciplining your emotions will go a long way in helping you break any bad addictions while trading.
3. To Keep off Negative Thoughts and Emotions
Another reason distractions can sometimes be helpful in forex trading is their ability to help traders ward off unhealthy thoughts and emotions.
It is not unusual for forex traders to beat themselves up when on a losing streak. After all, it is only human that a trader will get disillusioned when the trading outcome is contrary to the expectations.
Getting a hobby is an effective way you can distract your mind from the negativity that crops up due to uncertain industry trends and patterns.
To avoid too much tension getting to the head, hobbies are a great distraction. In fact, even professionals never keep themselves busy all day long.
In most modern workplaces, recreational rooms are provided for workers to get their minds off the bustle of the hustle. It goes a long way in improving emotions and boosting positivity.
As a trader, it is not advisable to spend your breaks sitting idly. This may cause your mind to drift to the negative emotions, allowing unproductive thoughts to crop up.
And you know what negative thoughts can do to your trading, right?
Apart from starting to doubt your trading plan, you can easily take wrong decisions that will drive your efforts down the lane of losses.
Less is more in forex trading. As investors try to get wealth, only the smart traders can find winning trades. If you do not have a hobby, develop one to achieve the expected results.
4. To Break Tensions
Imagine looking up at the charts and things don’t look so good for you! You will quickly build up some tension, break into a sudden sweat, and if you are unlucky, develop a headache when the trade is not in your favor.
This is where distractions come in.
If there is something other than the charts to look at, the better for you. Although the mind may fancy to look back at the charts, just avoid the temptation and walk away.
You will be surprised how a simple distraction will diffuse all the tension in your head and give you the opportunity to think straight.
When the charts and the past trades no longer affect you, your performance may improve, a great deal.
5. Helps You Find Mistakes
Mistakes are inevitable in forex trading. There is simply no perfect investment.
But identifying where the mistakes lie is a different ball game altogether, especially if your mind is set on one thing. As a trader, it is very easy for you to look at trades from a certain angle. Sometimes, this is largely influenced by the trading psychology, after all, we are emotional beings.
Distractions can change your viewpoint entirely. Take a break, walk away, enjoy your hobbies, and then get back to trading after a while. You will find that you are in a position to see things you hardly noticed before, simply because you took time off the floor.
Also, distractions can help in accepting past mistakes and forging forward with the full knowledge that improvements are possible.
Final Word
Taking breaks can boost the chances for success as a forex trader. If we appreciate the role that distractions play in forex trading, we can perfect our skills over time and enhance our strategies and techniques.
Do you agree that distractions can sometimes be important when trading?
Please share your thoughts in the comment section below.
