It is true that the expectations we have for ourselves play a central role in affecting our emotions and even our actual experience. In particular, waiting for a good result makes us feel excited while foreseeing a negative result makes us worry.
Experts in trading psychology have highlighted the connection of having reasonable expectations and ending up with a healthy trading mindset. After all, when one sets expectations that are too high, disappointment becomes more likely. On the other hand, when one sets very low expectations, there isn’t enough challenge to do better.
The first dangerous assumption is that hard work means taking more trades. This expectation does not take the quality of trades into consideration. In addition, it could make one prone to overtrading as it assumes that a bigger number of trades will someday turn into higher profits.
The next irrational expectation is that a good day means a profitable trading day. This doesn’t take into consideration the nature of forex trading, wherein one will always wind up with losses or losing days. This forgets to take a look at the analysis done and the discipline practiced in sticking to a trade plan, even if the result is negative. This may have been so because market sentiment suddenly shifted or a surprise event took place. In this case, remind yourself that as long as you did the trade analysis properly and followed your plan, it could be enough to call it a good day.
The last irrational trading expectation is that the measure of success in forex trading is being able to live off the profits. Remember that not all traders are able to end up this way, as it requires a huge amount of skill and capital.
Take note of these assumptions and try to avoid them as much as possible so you can stay level-headed and on top of your game.
Learn more about forex expectations.