Fear of Failure in the Forex Market Our approach to trading is defined vision and expectations. For example, if we are too scared, we refuse to take risks, and in extreme cases may even be afraid to enter the transaction. Our expectations are, consciously or unconsciously, have a great impact on the results of trading.
Traders are faced with many typical fears, and in each of them is based on beliefs and assumptions, which should be identified and refuted. For example, in his book “Trading in the Zone, Mark Douglas provides such fears, causing many mistakes: being wrong, losing money, get out of the game, leave the money on the table. Many of these fears reflect a fear of failure.
The best way to neutralize the fear of failure - to identify the main assumptions underlying it, and refute them. Albert Ellis, an eminent physiologist, claimed that all the emotions, like fear, is a set of basic assumptions and beliefs. Often these assumptions are “inadequate”, they limit our actions. Rather than see the problem in person, we avoid to have with them, trying to deny their existence. Often, however, it is useful to identify our false assumptions and change them.
The basic assumption underlying, for example, fear of failure, it is the belief that we need to be completely competent, adequate and successful. Ellis argues that this belief creates fear and anxiety, which traders have often generates fluctuations and uncertainty in itself. The emergence of this belief is understandable. As we grow, whether at home, at school or at work, we are often faced with the adverse effects of lack of experience and begin to believe that it should be perfectly competent, adequate and successful in everything we do. However, we are in favor of the faith. If we believe that there should always be competent, we spend all our precious mental energy to overcome the negative consequences of failure, rather than focus on what we do here-and-now, to implement our business strategy. Traders, convinced that they must be completely competent, spend all their time to care about what they did wrong that could go wrong and how to cope in the event of failure. These distracting thoughts, they mask the flow of direct experience and the ability to assess the current state of the market with the same accuracy.
Do not let fear of failure to resist the success of your trading. You do not have to be perfect. It will tell you a seasoned trader, everyone is doomed to make mistakes from time to time, and if you have any problems with them breaking, you’re so worried and scared that make many more mistakes. So oprovergnite inner conviction, the underlying fear of failure: to remind ourselves that it is not useful to believe that you should be perfectly competent, adequate and successful. No trader can not conform to this standard, and attempts to become one (what irony) will lead to the incompetence and failures.
IFX Market and FX Solutions
As a trader in FX market, you should be fuly aware of market components and financial institutions there. As a large market, there are many brokers, clients, and banks. Every category of them has a certain number inside it. Each broker seems as an opponent for the other. It is a war like between them, each broker wants to grasp as large number of clients as it can for more advantages.
Seems as bad intuition, but this is the world of business, "survival for the fittest". And you have to accept and believe what you see to avoid confusion and bad psychological signs.
In this war, the last battle was for the side of FX Solutions. Following up the news, we learned that IFX Market, a large well-known broker, was bought by FX Solutions! A big surprise that wasn't expected at all. And what is exotic here is that the capital of IFX Market is larger than that of FX Solutions. Besides, IFX Market has made good revenues during the last year, which makes from it a strange act to drop its business this sudden. Why should a successful, profitable, well-known broker like IFX Market relinquish all this to a broker like FX Solutions? And for what?
Adding to the mystery here, do you remember that millionaire who was disappeared and n o one knew the reason? That millionaire had accounts at FX Solutions with millions of dollars, and his disappearance was after funding his accounts there. But what we are sure about is that, there is no rational guy in all the world is willing to put millions of dollars in somewhere and leave them, even if it was for benevolence intentions (mark here, benevolence isn't made for brokers, it is made for those who are in need).
Many equivocal things taking place out there, and we need clear explanation for that. How can traders feel safe in a world full of ambiguity, suspecion, and vampires! Trade for innocent, clear causes, not for cruel and evil intentions. Why to make use of people's intentions for our own interest?
The essence of life lies in making lessons out of our experiences, not just living for nothing. And for FX traders, take care people, and don't trust any firm to deal with, or any guy doing nothing but just raising his voice pretending to say the truth, while we all know that he who raises his voice is doing that out of his weakness, while the right stands confident needless to fight.
Central banks
National central banks play an important role in the foreign exchange markets. They try to control the money supply, inflation, and/or interest rates and often have official or unofficial target rates for their currencies. They can use their often substantial foreign exchange reserves to stabilize the market.