Why Becoming a Vulcan "Spock" Is Required To Trade Forex

Spock

Most traders experience very real difficulty in what might otherwise be a relatively simple process of entering and exiting trades.  The difficulty that most traders experience is the inability to separate their thoughts and emotions from the visual recognition of entry and exit signals.  The signals for entering and exiting trades are strictly visual pictures that form on charts.

And yet most traders do not believe the signals they see.  They create other factors in their minds which are not related to these signals.  They add other criteria that is not part of the entry and exit criteria. And most of all they allow their feelings to become a factor for choosing whether or not to enter or exit a trade.

Emotions are wonderful guidance tools as revealed in the Abraham-Hicks book, The Astonishing Power of Emotions.  Our emotions can guide us to know whether we are experiencing resistance in our lives or we are on the right track.  But in trading emotions primarily prevent a trader from entering a trade when there is an entry signal and exiting a trade when there is an exit signal.  The signals are visual pictures that appear on a chart. Either the entry or exit has formed or it hasn't. The emotions that you may be experiencing do not have anything to do with whether an entry signal has formed or not.

Once you are aware that you experience a variety of emotions when trading and you can relax and detach yourself from those feeling and thoughts, then it is a small matter to consciously choose to focus on the visual recognition of whether or not there is an entry or exit.  Just know that it has nothing to do with the other things you are feeling and thinking.

When you can consciously separate these 2 things, the visual recognition of an entry and exit and the emotions and thoughts you are having you can choose to act on the visual recognition of the signals only while also acknowledging the reality of your other thoughts and feelings.   Then just try aligning your physical action of entering and exiting trades according to the signal on the chart.  Try it in a demo account.  Be aware of the separation of these two things.  And make a game out of it to have fun.

Just say, “I feel fear of losing right now.  But there is no exit so I will do nothing.”   Or “I feel excitement right now.  But I do not see an entry.  Therefore I will do nothing.” And likewise,  “I feel fear and uncertainty right now.  But I see an entry.  Therefore I will enter.”

A trader must learn to look at a chart and determine the answer to this question:  "Is there an entry or exit signal? Yes or no?"   Any other response would be "illogical"and unbecoming of a Vulcan such as Spock.