In order to comprehend the specifics of trading each separate trade may be divided into 5 stages. In other words, you should instinctively divide each trade into 5 different phases requiring different attitude. Three of them are intellectual in nature and two of them are intuitive. Let us take a closer look at these stages:

Stage 1 – Searching for opportunities
This phase may be enjoyable for the first hour, then it becomes boring, but anyway attention is needed. Stage 1 is deliberate studying the trading charts in accordance with the trading strategy you have chosen. This process is intellectual in nature. However, be sure you are not under control of your emotions which may bring taking of false decisions. You should define your process of seeking opportunities and stick to it. Do not get upset about every wasted opportunity.

Stage 2 – opening position
This phase is an intuitive one. Since you have received an appropriate trading signal, you should immediately place the corresponding order. When the situation is identified and the signal is received and interpreted, no matter how you received such a signal, you should immediately open a position. Hesitation here may only lead to failure. Those traders who lose do that because they do not trust the system they have chosen.

Stage 3 – position management
So, we are in. For most traders this stage is the most difficult one because their money is at stake and it is high time to start panic. The main difference in mindset of losing and winning traders is that when the price goes into undesired direction the first group is expecting the price to reverse and the second group when making losses is afraid of losing more. The same difference comes when speaking about taking profit. Professional traders do not fear market to take the profit, they suppose that their profit will extend. Here you should overcome your emotions. Ignore fear, hesitation, greed and hope. Such emotions always end up with a failure.

Time is required to develop confidence in trading rules. Your trading rules are your weapons. Here your personal attitude to the facts may become an obstacle. This stage is treated as the most important one as here emotions rise to their peak and some traders get confused.

Stage 4 – closing position
This phase is definitely intuitive. While closing position, the trader should be relaxed eliminating thinking of trade, profit, losses, commission etc. The only thing you need to do is just exit, close the position. Click to close as soon as you get an appropriate signal.

Stage 5 – analysis
You should keep a diary of you trades as it will provide you with an opportunity to compare your trades and find reasonable explanation for excessive profit or deep losses. Your opinion towards trading should be based on experience with numerous trades as analysis of transactions may reveal certain trading regularities. Thus, analyzing your trading experience you may discover the fact that a certain trading strategy proves to be profitable once out of 4 times, but when its works, the profit covers all the previous losses. Clear analysis is aimed at eliminating further mistakes in trading.

Author's Bio: 

Dennis Vydrin of Forex Ltd, an experienced expert in Forex trading. Find everything you`d like to know about Forex at