There is no denying the fact that the more FX rates fluctuate the better it is for a forex trader. Greater volatility in the market means that the trader will get more opportunities to make profit.
However, trying to profit from fluctuating FX rates is like trying to battle your own limitations. The biggest weapon that forex rates have against you is your own emotions. Therefore, the best way to prepare for this forex trading battle is to get to know your own psychological capabilities as much as you can.
Therefore, before you go forth and join the battle, you need to take stock of where you stand in terms of your weapons i.e. your psychological capabilities. This way, if you find some of your weapons blunted then you can go about sharpening them. Consider the following.
Your Self Awareness
Everything starts with your self-awareness. Regardless of which field you are involved in, the better your knowledge is about yourself the better your performance will be. For this reason, you need to know who you are, what you are most comfortable with, and how you approach things.
If you can gain self-awareness then you would find it easier to cope with the fluctuating nature of FX rates in such a manner that nothing will surprise you.
Your Level of Discipline
There will be a lot of uncertainty in your battle with FX rates. Sometimes, they will go in the direction that you projected while other times they will surprise you and leave you stumped. This certainty can only be countered by discipline.
You need to be disciplined in every aspect including your physical routine, your objectivity, and your emotional balance. It is important that you assess your level of discipline and subsequently work on making it better in every way possible.
Your Dedication to the Cause
As you learn more about FX rates and the forex market in general, you will discover things or uncover situations which will bring you down. However, the key to dealing with such situations is simply to battle on till you beat the enemy into submission.
Your dedication to the cause will come into play here i.e. how much you want to win in the end. The more you are devoted and dedicated to your goals, the more likely it will be for you to attain your objectives.
Your Level of Conviction
Some experts advise new forex traders to stick to their chosen strategies and methodologies, irrespective of how the FX rates behave in the market. Other experts counsel the need to be adaptable so that changing market conditions do not affect results as much as they have the capability to do.
In life, as in the forex market, your beliefs and concepts will be challenged consistently by FX rates. Knowing when to stick to your beliefs i.e. strategies, trading plans, and view of the market and when to change your beliefs would play a major role in how successful you are in getting profits.