Most of us have ideas about the amount of time it takes to make a certain amount of money. These ideas do not apply to forex trading. A trader can literally make thousands of dollars in a matter of minutes or even seconds with very little effort expended at all. This is very different than what most people are brought up to believe is possible about making money. Most people are raised to believe that to make money (especially large sums of money), it takes much time and effort. When I first started trading, my family and friends could not understand how, in just a matter of minutes, I could have the possibility of being up or down many thousands of dollars. People dont make thousands of dollars in minutes. It takes weeks. At least it does in most business.
To many people, the possibility to make or lose money that quickly is something theyll never experience. But to a trader, this is something we experience on a daily basis. To be a successful trader, youll definitely need to get used to it. The problem is many people have a mental conflict with that kind of situation. Because of our upbringing, we have certain beliefs about whether we deserve to make money that quickly. In many cases, we are so taken back that we made that much money so fast, that it doesnt seem to be right that we that we could have that much quickly. This leads to two serious problems.
The first problem is the big one. If you subconsciously dont feel you deserve to make money so quickly, then when we do get that quick windfall, our subconscious will say, Hey you cant make money that fast! Wed better find a way to give that money back! And believe it or not, you will most likely end up doing just that. That is how powerful your subconscious is. If you have a certain belief about yourself, your subconscious will strive to make that believe true.
The second problem with this mental conflict is it causes people to stay in trades way too long.
Just because the market gave you $1000.in profit in two minutes, it has nothing whatsoever to do with whether the market is going to continue in the same direction. The only way to deal with these situations is to be mentally prepared for them to happen, because they will happen. By being mentally prepared for this type of situation, you act in your own best interest by not letting the lions share of your profits get away from you.
Remember, acting in your own best interest to protect yourself is much more important than finding winning trades. Dont get caught up in thinking the market must keep going if it moved this far, this fast. Keep yourself prepared for whatever it does and you will have much better chance of holding onto your profits.