Psychology Of Forex Trading

[asiaforexmentor]

Guys.. this is something important which i want you guys to think about.

Most of us spend most of our time looking in charts, looking for good entries to

enter. And we spend all our time in that.

But are we doing the right thing all these while?

let us step out of our charts and look at the entire forex picture.

Let us reflect on how we can improve our forex game.

what are the things that we are doing wrong and should remove.

what are the things that we should be doing, but did not do?

what are the things that we are doing correctly and should keep doing

Let us look deeper..

What is our general risk reward ratio, – is it good enough for our account size

to grow and cover our loss we take in the mean while

what is our risk % size – is it too much or too little?

Did you enter the same position size on EVERY trade? are you discipline enough

to do that.

Price Action – Remember this is king in forex, did you enter with price action or

without it?

Emotions – (Entry) do we let emotions affect us as to when we enter the trade

(afraid of missing a trade)

is it because of missing a trade, we fail to enter on the break of the price

action bar + 10 pips. Instead we entered on the close of the bar and made a lot

of losses.

Emotions – (Exits) do we exit our trade base on emotions. How ofter does it

happen. did we stick to our initial plan?

Stop loss – did we shift our stop loss accordingly. Did we ever shift back our

stop loss because we hope it will go back to our direction we wanted?

Picky – are we losing money because we are not picky enough on our trades. Do we

enter base on 3 to 5 reasons or only 1 reason?

Overtrading – do we tend to over trade because we do not want to waste our time

looking at charts but not entering. did we enter more trades to grow our account

but instead make more losses.

Above are some reasons.

i want you guys to step back and think of the reasons that is affecting you. I

want all of us to improve our game further. and not just trade blindly.

Remember – CONFLUENCE is the key. Confluence means many reasons and not only 1

reason to enter.

Confluence makes you picky, confluence removes overtrading.

Postion sizing and money management is VERY IMPORTANT. If you are still not

implementing it. PLEASE CLOSE YOUR ACCOUNT. i do not want you to lose any more

money. PERIOD.

Remember to COMPOUND. this is what makes us FULL time forex traders and not

wannabes.

 

Ezekiel Chew

Asia's #1 Forex Mentor

[Decub]

An average trader has one psychology and mentality about Forex and that is basically what everyone is in for. It is about making money from Forex. Everyone believes Forex is a place you can run into for some financial safety and assurance. Some others eventually achieve this feat while Some end up losing their savings. It is better to see Forex as a business of profit or loss than an all profit thing.

[waseemilyas]

 median trader has just one psychology and mentality about Forex Which is actually what Every person seems to be in for. It truly is about building cash from Forex. Almost each individual individual thinks Forex is really a location you can perform into for some cash basic primary safety and assurance. Numerous other Adult males and ladies inevitably obtain this feat Although some find yourself shedding their individual private financial savings. It is more healthful to take a look at Forex like a business of acquire or loss than an all income challenge. 

[myregister]

An average trader has one psychology and mentality about Forex and that is basically what everyone is in for. It is about making money from Forex. Everyone believes Forex is a place you can run into for some financial safety and assurance. Some others eventually achieve this feat while Some end up losing their savings. It is better to see Forex as a business of profit or loss than an all profit thing.

Since it is easy to got it is easy to loss and our sanity sometimes affected if we cannot prepare for the worst, many traders before me said it is better to invest what you can afford to lose here, since the risk is high so that is why we must have strong and solid view. It affect a lot of traders.

[pepy]

Sanity to be affected only by small portions of traders not all. Mostly of them are fine and move on to find a better life. Psychology is exist in everywhere not to exclude forex itself, and the best part of this all that psychology also affect forex a lot and the decision of almost all traders before take an action, this is what we called as sentiment.

[myregister]

 median trader has just one psychology and mentality about Forex Which is actually what Every person seems to be in for. It truly is about building cash from Forex. Almost each individual individual thinks Forex is really a location you can perform into for some cash basic primary safety and assurance. Numerous other Adult males and ladies inevitably obtain this feat Although some find yourself shedding their individual private financial savings. It is more healthful to take a look at Forex like a business of acquire or loss than an all income challenge. 

Yep, even it is quite hard to understand yours but i get the point. To me use our own individual money, i mean "hot" money or in my country called "kitchen" money/bucks never be a good idea it will only increase the risk and affect someone's psychology when trade and after trading in greater amount. Forex is suitable for cold investment, the money that you don't use everyday but quite a lot and you don't know what to do with it that will affect your psychology just a tiny bit or even not affect it at all.

[pepy]

A trader should never do that, it will just lead to more losses or woriness rather than someone become a better trader and focusing theirselves to keep doing the best. That is just normal since you are using money which is actually the money that come from your own pocket or the money you should use for something more important.

[myregister]

What? What is the normal thing use your own pocket money? That is actually not normal and also not recommended by all people who involved in this business for so long time, agains this kind of good advice will only make trader suffer or at least limit their potential to act well and create profits.

[radex78]

Psychology trading has high role during trading, usually as beginner strill weak to control their emotion properly, because lack in experience also knowledge, and how tio built up beter psychology trading, hence start in real account will better after they felt confidence i demo account

[pepy]

I would say that rather a good idea for people, first of all psychology plays important part for traders around the world and not just newbie which affected but also experts or someone who have a lot of experience in fx. Emotions are the core of this psychology that will of course affect the way we take a decision.

[bigxy]

I guess emotions should be set aside while trading and a trader should trade when he in mentally relaxed.

[myregister]

There are 4 demons or considered "bad" emotions which trders should avoid at all cost or control it if they can. It is Greedy, Panic, Fear, and Euphoria. Panic is a bit new to my head but it happened in my previous trades. In a panicky situation, the trader sees nothing but losses in the market, with no possibility of concluding a profitable trade. Losing hope before trade won't yield any result.

[pepy]

avoid those bad emotions it is the best thing we can do, those emotions really destructive if you let it to overcome your trading and surely affect the way you trade and your psychology , it will rendering you effectively to stop trading i'd actually try to avoid it as much as i can.

[myregister]

I agree with avoiding your bad emotions, or to be exact make sure it is under control. I really love the quote of Warren Buffet about greedy and fear. It means that trader should have control of both. I know those two are emotions which people trying to avoid but if you able to control it there is greater chance for you to create a new opportunity to be a profitable trader.

[pepy]

Psychology in forex is playing important part, we can see many traders lose their money because their psychology is not strong enough. I bet some of you ever feel afraid and the cut the loss but few hours later the market is make a coming back. Psychology is important part in foreign exchange trading and people should pay attention to it, it doesn't have to be deep enough but at least you can apply it.

[myregister]

Yes, couldn't argue more about that. First of all we need to know that psychology of forex trading is actually nearly the same just like the general psychology, also it is truly affected the way of us to see the market. Market sometimes react based on fundamental issue, but sometimes you see the market works differently, i mean when fundamental issue/indicator is relatively good, the market is moving to the other way which sometimes makes me confused, and this is i know that psychological of most of the market participants really affected the market itself.