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Thread: THE PSYCHOLOGY OF TRADERS

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    Default THE PSYCHOLOGY OF TRADERS

    Establishing the proper trading psychology can be crucial to a trader having success in the Forex Market. This is something that many novice traders tend to overlook as they are developing their market education. Not possessing the proper “trader mindset” can result in a negative and costly experience while trading in Forex.

    An invaluable tool in trading is being able to recognize the psychological causes of trader actions. In order for us to correct our short comings and minimize the losses that are suffered when trading, we must first identify the problem and recognize the issues surrounding it. Forex trading success is a combination of prudent money management, appropriate capitalization, proper trading strategy, and possessing the proper trading mentality. In order for a Forex trader to be truly successful in his trading, all of these factors must work together in harmony.

    Here are some examples of common psychological issues a new trader might face:

    Fear of taking a loss:
    A trader’s ego can play a huge role in his actions. More often than not, this is the cause of a trader being afraid to get out of a losing position. Not willing to admit a mistake, the trader tries to go against market trends in order to beat the market, but often finds himself incurring even greater losses.

    Getting out too early:
    Beginning traders often exit a market position prematurely. This is usually because the trader lacks confidence in trading. Mainly to relieve himself of the anxiety of holding his market position, the trader exits his position before he should.

    Knowing When to Walk Away:
    This happens in either of two ways. One, the trader doesn’t recognize when the market is turning because he gets too excited over the initial success of his market position and by holding onto that position, he ultimately takes a loss, or a much smaller profit. This is a case of overconfidence and general inexperience with market swings. The other way is because a trader refuses to acknowledge that he’s made a mistake. He holds on to the losing position hoping things will turn around and correct his mistake. Again, this is due to ego.

    Trading Addiciton:
    The thrill of making profits can be very addicting. Some traders feel euphoric when they make a good trade. The danger with this is that a trader may seek out this thrill with no consideration for potential losses.

    Loser’s Recourse:
    Traders feel this way because they think that they are being victimized by the market. In reality, the trader put himself into this situation and perhaps it is a result of starting out with unrealistic expectations.

    Guilt feelings in making excessive profits:
    Though uncommon, traders sometimes feel guilty when they making excessive profits due to poor self esteem. They believe that they don’t deserve the profits they make and thus, limit themselves to how much they allow themselves to earn.

    Second guessing your trading strategy and over-thinking your positions:
    This is the result of wanting a “sure thing” in a world of uncertainties. Traders often fail to understand that losses are a part of Forex trading, choosing to disregard the risk inherent in any and all investment ventures. More importantly, in Forex, it is the “end of the day profits” that truly determine success.
    The human mind is the most difficult aspect of Forex trading to overcome. There is no short cut to this except through realization, and coming to terms that we all are human and are prone to mistakes. Once we can recognize this, we can begin to watch out for these “undesirable” mental blocks and take the proper steps to eliminate them.

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    Sometimes, trading psychology is the most forgotten thing in forex. We do not have a lot of attention so when trading, we can not control our emotion. As a trader, we must understand ourselves. We can try to use small amount to hone skills, try to maximize trading account in Freshforex if you want learn how to control emotion, understand our trading psychology.

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    Psychology is important things in forex and generally, there are many traders who are failed in forex because don't have good trading psychology. That's why we also must hone it before we make deposit in large amount. Try to use cent account in TenkoFx.

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    trading psychology is important in forex trading, with a good trading psychology then we will be able to try to trade with the maximum. our trading skills will useless if us less trading psychology. for that we need a lot of exercise psychology of trading

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    psychology is very important. Trading psychology is an attitude. Every trader needs to develop it to become complete. For me, i was able to work on my psychology to become better in forex using other books and real life biography and autobiography of successful legends in the past. It is not so difficult to achieve, but it is also tasking like strategies.

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    Quote Originally Posted by CahCuncun View Post
    Psychology is important things in forex and generally, there are many traders who are failed in forex because don't have good trading psychology. That's why we also must hone it before we make deposit in large amount. Try to use cent account in TenkoFx.
    Psychological condition of a trader is very important while trading, you can place good trades if you are in a positive psychological condition, and if you are not then its better to avoid trading.

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    Quote Originally Posted by fxapex View Post
    Psychological condition of a trader is very important while trading, you can place good trades if you are in a positive psychological condition, and if you are not then its better to avoid trading.
    If we have good trading psychology, we will be able to earn more profit in forex. And traders must understand themselves. We must know whether now is the right time for us to trade in forex. When emotion is uncontrolled, and we also feel bored, do not force ourselves to trade in forex

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    Trading psychology is super important, we wrote a very good article about this topic a while ago.
    PrimePair - A Pip Above The Rest

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    Quote Originally Posted by OrlyPrimePair View Post
    Trading psychology is super important, we wrote a very good article about this topic a while ago.
    Yes, it's very important because we will be able to trade in forex and psychology also will influence our trading result. We must hone it before we use larger amount for trading in forex. If we can do it, i'm sure, we will get more maximal profit . In Freshforex, trader can try to maximize real account with small amount. There is no minimum deposit in this broker

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    The Key Psychological Traits of Top Traders are:
    Personal Responsibility
    Commitment
    Their psychological “profile”
    Working on personal issues (e.g., self sabotage)

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