Page 1 of 5 123 ... LastLast
Results 1 to 10 of 48
 0 Attachment(s)    

Thread: Forex trading psychology

  1. #1
    Banned
    Join Date
    Aug 2014
    Posts
    924

    Default Forex trading psychology

    Understand the Role of Trading Psychology

    As a beginner you will probably be thinking that learning all of the technical stuff is the hard part, but if we were to fast forward 5 years, and assume that you are a successful Forex trader, you would have very different beliefs. The truth is; the hardest part about becoming successful at trading Forex is fine tuning your brain to cooperate.

    As we all know and are constantly reminded everywhere, 90-95% of traders fail. There are plenty of good trading methods out there that work (some better than others), yet 90-95% of people fail. Some of those statistics will be the gamblers who donít know what they are doing and werenít interested in learning properly anyway, many of them were probably tricked with get rich quick claims and donít actually realize they are gambling. We must assume that the rest of the people that fail are those who studied and understood Forex trading and wanted to pursue it, after all, if you studied it and didnít understand then you wouldnít bother continuing would you?.

    So, with all of these people who understand Forex trading still failing, how can we break that group apart?. Some of this group would have to be those who didnít quite look around enough and received bad education, the rest would be those who received good education and studied it well. This last group of people still have a high failure rate! Since you are reading this and taking the time to study then this is the group you will most likely be in. Assuming that you do go through all of material that you need to, develop and understand a complete trading plan, and prove to yourself that it is profitable before going live, we need to address the reasons for the continuing high failure rate after that.

    Discipline, Patience and Confidence

    Discipline and patience are required if you want to learn how to develop a complete trading plan properly in the first place. It wonít happen overnight and is a lengthy process, plus you wonít be earning any money from it. Itís easy to rush things and jump in before you are ready because you smell the money, itís not so easy to maintain the discipline and patience required not to. Once you make it passed that phase you will then need more discipline and patience to test your plan properly and make sure that it works. This will also take a fair amount of time and the smell of the money will be stronger because you now have your plan. The discipline and patience to get through this phase does come with a reward though. By taking the time to properly test your plan and see it working you will build up your confidence in it. This will be very important for you later on when the emotions of trading real money come in to play.

    Fear, Greed and Anger

    Once you complete your trading plan and test it the next progression is to start trading with real money. Logically this should be no different from when you were demo trading but you will find that it is not. Emotions are important for real life or we would all be cold and robotic but you need to switch them off when Forex Trading. The biggest problem for most people is the fear of loss and there are a couple of ways to tackle this. Firstly, you shouldnít be trading with money that you canít afford to lose, and secondly, you should maintain the discipline and patience to build confidence in your trading plan as discussed above. Just try and keep a level head with your confidence as you see your plan working or greed may take over. The fact is; no matter how good your plan is there will be loss sometimes, getting greedy and loading up on a trade that results in a loss will make you angry. Anger will force mistakes and you could get on a very ugly path to destroying your whole account. If your trading plan accounts for loss as it should then there is no way you could know which trade will be one of those losers. This should in turn combat greed.

    Forex Trading Psychology Tips

    It is easy to read about and acknowledge all of this but some of it is unavoidable. Maintaining the discipline and patience to develop your complete trading plan, then build confidence in it, are the easy parts because they can be taught. Dealing with the emotional effects of trading with real money will be a slightly different journey for everyone. Iím afraid you will need more discipline and more patience to get through these emotional elements. Just remember the following points.

    A complete and properly tested trading plan will build your confidence in it.
    The more confidence you have the quicker you will master your emotions.
    Never trade with money that you canít afford to lose and fear should not be an issue.
    You plan should account for loss so greed should not be an issue.
    You plan should account for loss so anger should not be an issue.
    Whatever you do donít expect perfection from yourself, no matter how much you read or how smart you are you will make mistakes early on. The only question that remains is; will you keep making them or learn from them?

  2. #2
    Banned
    Join Date
    Dec 2013
    Posts
    286

    Default

    Nice share. In forex trading, good psychology should be owned. We will not get maximal result if we trade with emotion. We can try to learn our psychology using real account with minimum amount. Try to use $10 in TenkoFx using real account and hone our psychology.

  3. #3
    Banned
    Join Date
    Dec 2013
    Posts
    353

    Default

    Trading psychology is an important discipline that needs to be studied and understood by anyone who aims toward long-tern success in the financial markets. Self-mastery and emotional control are key to achieving consistency when trading.

  4. #4

    Default

    There are many situation a trader will face while trading which effect a trader psychologically, in any situation if he wins or looses. In any situation a trader should be in a perfect psychological state to deal with both the situation successfully.

  5. #5
    Banned
    Join Date
    Dec 2013
    Posts
    353

    Default

    Trading psychology is an important discipline that needs to be studied and understood by anyone who aims toward long-tern success in the financial markets. Self-mastery and emotional control are key to achieving consistency when trading. Euphoria and fear are powerful enemies to the rational decision-making that should be guiding our trading choices

  6. #6
    Banned
    Join Date
    Dec 2013
    Posts
    286

    Default

    we should be able to have a good trading psychology if we want to succeed in forex, for that we need a lot of training our trading psychology, trading with small capital we can use to train a good trading psychology. such as trading in tenkofx with $ 10

  7. #7
    Banned
    Join Date
    Dec 2013
    Posts
    353

    Default

    Trading psychology is an important discipline that needs to be studied and understood by anyone who aims toward long-tern success in the financial markets. Self-mastery and emotional control are key to achieving consistency when trading. Euphoria and fear are powerful enemies to the rational decision-making that should be guiding our trading choices.

  8. #8

    Default

    yes. psychology is important. we need know about it. we need to control our emotion in trading. we need keep it to success. the most trader lose money because they can control their emotion

  9. #9

    Default

    Yes there are many psychological aspect that a trader should take of, but many of these factors can be controlled as a trader spends time in the market.

  10. #10
    Banned
    Join Date
    Dec 2013
    Posts
    353

    Default

    Trading psychology is about understanding the way we react mentally to the stresses and pressures of trading. Controlling your emotions is essential to successful trading, without a clear mind you won’t be able to make rational trading decisions.

Similar Threads

  1. Trading psychology
    By painofhell in forum Trading discussion
    Replies: 13
    Last Post: 09-15-2017, 14:39
  2. THE PSYCHOLOGY OF TRADERS
    By painofhell in forum Trading discussion
    Replies: 11
    Last Post: 08-26-2015, 06:51
  3. Trading psychology : discipline
    By painofhell in forum Trading discussion
    Replies: 12
    Last Post: 08-17-2015, 10:43
  4. The Psychology of Forex Trading
    By painofhell in forum Trading discussion
    Replies: 0
    Last Post: 12-07-2014, 14:52
  5. Replies: 0
    Last Post: 05-04-2014, 16:16

Tags for this Thread

beginner, broker, demo, eur, expert, forex, forex trader, forex trading, fundamentals, grid, high, how to, learn, level, live, main, money, news, offer, profit, profitable, real, spread, strategies, strategy, study, system, test, time, trader, trading, trading forex, trading system, training, trend, usd

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •