Did you realize that we cannot make profit in every trade you make? Yet we hope that every trade be successful. This is societal bias which affects us to be perfectionist. There are many cognitive biases which affect us against long term profits in trading . For this article I will concentrate on perfectionism.


Perfection has to do with the end product, but excellence has to do with the process.

I like this quote by Jerry Moran (US senator) and it perfectly suits trading process. We should aim for excellence but not perfection in trading. In next paragraphs I will try to explain the above. First, Let’s see what happens to traders.

You probably thought at times at those moments when you close positions too early, only to see a further rise of prices that may be beyond your target profit. Or when you close the position at a loss, only to come back and continue to go according to your strategy; or maybe it was a case where you do not have entered the market because the setup is not quite right or the market price has not reached the desired level to enter, you have missed the opportunity to not have won. Likewise, perhaps you were the days when you turned up luck in these situations. The nature of the markets and the human nature produces medium imperfections. Perfectionism at heart - this is a great quality, however, as expressed in the extreme, it can often be destructive and very likely be a hindrance to you as a Forex trader.

Thus, the big question is whether you have a tendency to perfectionism?

Perfectionists - people whose standards are very high and beyond the reach, it is the people who stress, involuntarily and steadily go to unreachable goals and who measure their own merits solely in terms of the efficiency and performance of a task.

Does this sound like you?



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Perfectionists are affected by setting overly high standards, fear of failure, delay, never satisfied with his success , and may become emotionally unbalanced if their standards are not met , which can often take place in trading; they are afraid of competition , not trained , meticulous in the way of his thinking, being overly self-critical and intolerant of errors , and can be prone to a high level of fear of possible failure . Fear of loss , swings , fear of pulling the trigger, falling into extreme disappointment or anger when your trading strategy suffers failure or when you miss the moment of entering the position , or if you are very self-critical in their trading activities on Forex, may be evidence of the presence of you have a tendency to perfectionism. One way to check you on a tendency to perfectionism is to have in your vocabulary or thought of the words "must" and "should".


So, if you have a certain tendency to perfectionism, what you can do?


One of the most useful things and important principles that must be remembered is that people tend to make mistake and therefore, you, as a Forex trader, is also prone to make mistakes (that you also are not perfect). Following this principle, as one of your trading beliefs as part of your mental map, it may be very useful in the sense that it will save your reactions to events more realistic and less emotionally saturated.


They say that nobody is perfect. Then they tell you practice makes perfect. I wish they’d make up their minds. ~ Winston Churchill

Since you are working in an imperfect and uncertain environment , it is imperative for you to learn how to think in probabilities. Interestingly, studies in the field of behavioral finance consistently show that people are not able to do so effectively conclusions or probability to think that this is the skill that many people will need to develop in you. Mark Douglas (author of "Trading Zone") writes: "each trade has a probabilistic result, which does not exclude the possibility of damages. " The shift in thinking from the concept of excellence to the concept of probability will foster trade behavior which can improve the quality of transactions and respond to events.


Try to do everything possible to strive for excellence, and not to focus on being the best; Set a goal to become a good trader (but not the best in the world) and focus on it. Focus on learning and improvements, including an understanding of and accepts mistakes and learn from them.

Focus on your shopping process, not just the result. By focusing on the trading process, you enclose yourself from certain anxieties and frustrations that occur when you are too attached to their results. Try to focus on how well you trade, and not just on how much money you earned or lost.

Learn how to make a call in trading and seek pleasure in what you are doing. With this, you also allow yourself to take a look at the ups and downs in trading from a different angle, and a rethinking of the situation will enable you to get a different perception of those events, with fewer disappointments and emotional shocks.


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It is important to note that the ability to see the destruction and subsidence on forex as learning opportunities, not self-condemnation. One of the drawbacks can be a perfectionist his negative reaction to mistakes, errors and failure to learn from them. Errors give us opportunities to learn and improve efficiency, but only when we really perceive them as such.

Finally, it is important to learn to accept that your personal wealth is not your net worth - that you are worthy of the person, regardless of your trading results at any time. On a fundamental and profound level, it is a key conviction for optimal human functioning, happiness and a successful trade.

You will not win every trade. And it is absolutely normal. Remember that people make mistakes in an uncertain environment - a world of perfection is unattainable; we live in probability world.
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