Emotions And Forex Trading Don't Mix

Samuel23

Banned
Apr 20, 2012
171
1
0
The key to making money in the currency exchange market is to avoid emotional decisions and to follow a carefully thought out strategy that takes the current market and history into account. Going with your gut is not the way to go in the Forex market. Going with your gut could cost you money. Forex trading is a highly volatile market where emotions tend to run high. Emotions can influence your trading decisions, unless you have a strategy planned in advance, and stick to it, no matter what you think you're seeing at the moment. The keys to success in Forex are system, analysis and perseverance. Most experienced traders tell novice traders that they need to develop a system — and stick to it no matter what. Letting your emotions rule your decisions can hurt your trading in a number of ways. The system tells you when to buy, what to buy, when to trade and what to trade for. By sticking to your system you'll maximize your profits. A system based on technical analysis of historical market trends is one of the most potent tools that you can utilize if you're just getting started in Forex trading. Many traders, with years of experience, continue to use this system to keep the profits rolling in. Many traders will tell you that when their gut instinct and their system collide, the system is almost always right.
 

Dominator4fx

Banned
Apr 5, 2012
66
0
0
Asia
The key to making money in the currency exchange market is to avoid emotional decisions and to follow a carefully thought out strategy that takes the current market and history into account. Going with your gut is not the way to go in the Forex market. Going with your gut could cost you money. Forex trading is a highly volatile market where emotions tend to run high. Emotions can influence your trading decisions, unless you have a strategy planned in advance, and stick to it, no matter what you think you're seeing at the moment. The keys to success in Forex are system, analysis and perseverance. Most experienced traders tell novice traders that they need to develop a system — and stick to it no matter what. Letting your emotions rule your decisions can hurt your trading in a number of ways. The system tells you when to buy, what to buy, when to trade and what to trade for. By sticking to your system you'll maximize your profits. A system based on technical analysis of historical market trends is one of the most potent tools that you can utilize if you're just getting started in Forex trading. Many traders, with years of experience, continue to use this system to keep the profits rolling in. Many traders will tell you that when their gut instinct and their system collide, the system is almost always right.

We can have both Positive Emotions which can give us good results and the negative emotions which can ruin our trading.

We have to learn on how well to manage them :D
 

cjthelegend

Trader
May 3, 2012
15
0
12
We have to learn on how well to manage them :D

Agree with this entirely. What most good traders argue, is that the best and most consistant trades are executed when you are completely emotionaly detached from the trade. Where emotions have no influence whatsoever. That doesn't mean you don't have them, it just means that they are removed from your trading. Managed, felt but not followed.
 

Alchemist

Active Trader
May 2, 2012
74
1
27
England
www.alchemistforex.com
Agree with this entirely. What most good traders argue, is that the best and most consistant trades are executed when you are completely emotionaly detached from the trade. Where emotions have no influence whatsoever. That doesn't mean you don't have them, it just means that they are removed from your trading. Managed, felt but not followed.

Yes, emotional detachment is the key. Fear and greed are a very powerful combination, and they need to be overcome. This will be difficult at first, but it's something that you can develop over time.
 

Dominator4fx

Banned
Apr 5, 2012
66
0
0
Asia
Yes, emotional detachment is the key. Fear and greed are a very powerful combination, and they need to be overcome. This will be difficult at first, but it's something that you can develop over time.

Emotions are a key part of everything and so the Forex also comes with a lot of Emotions to both manage and live with.

We must be able to control the Emotions in order to be able to get the success:D
 

WalkieTalkie

Master Trader
Feb 19, 2009
141
0
47
Emotions are a key part of everything and so the Forex also comes with a lot of Emotions to both manage and live with.

We must be able to control the Emotions in order to be able to get the success:D

this is so true. I highly advise you to read a book 'The Disciplined Trader" about the power of emotions and how we can control it while trading forex.
 

Samuel23

Banned
Apr 20, 2012
171
1
0
Thanks guys, emotion is something that we cannot control and i just hope that all of you have a really nice trading and win big. :)))
 

krists

Trader
May 23, 2012
2
0
12
Riga
Emotions

I would say that emotions is what makes trading fun... however in the long run I have learned that to earn money you have de attach yourself and just see it as rules. One thing is to say to yourself, I dont care, but then anyhow the next time you loose your monthly salary in a couple of minutes you start sweating. My solution is to make routines, write them down and do nothing else than follow them! :)
 

Fxpipper

Master Trader
Oct 26, 2011
1,132
4
49
Yes, emotive decisions are never good when it comes to business and you can say that again. The key is in learning to control it..there are any number of ways you can use to keep your emotions in check..
 

Samuel23

Banned
Apr 20, 2012
171
1
0
Exactly, emotion has its advantages and disadvantages. It can be very good as well as very bad. This is why we are call HUMAN. :)))
 

Alchemist

Active Trader
May 2, 2012
74
1
27
England
www.alchemistforex.com
It boils down to two things - discipline and practice. Over time, as your trading skill increases, so does your confidence. It then becomes easier to keep those emotions in check.
 

Dominator4fx

Banned
Apr 5, 2012
66
0
0
Asia
exactly emotions are positive and negative...so if you remove as much as possible from your trading what you are left with is your emotionally unbiased skill, your intuition and your strategy (which hopefully includes risk management)

Stop your losses and learn not to chase them :)

If we are able to control the Emotions we will also be able to control our trading and then become profitable traders.

The best thing is that we will get lot of time for doing so;)
 

John Forrest

Trader
May 27, 2012
2
0
12
Emotions are not fun in trading when you are chasing a big loss. When pride kicks in, and arrogance...with a little stubborness into the mix..and you chase and chase trying to even just crawl back to even...pushing your account further into the depths. Much easier when you hit a loss to learn to let go of it, detach and become emotionless to it. Save yourself a fortune, learn to manage your emotions and your trading psychology.
 

Alchemist

Active Trader
May 2, 2012
74
1
27
England
www.alchemistforex.com
Emotions are not fun in trading when you are chasing a big loss. When pride kicks in, and arrogance...with a little stubborness into the mix..and you chase and chase trying to even just crawl back to even...pushing your account further into the depths.

Been there, done that. :)

Much easier when you hit a loss to learn to let go of it, detach and become emotionless to it. Save yourself a fortune, learn to manage your emotions and your trading psychology.

Unfortunately, this is a lot easier said than done, and most traders learn it the hard way.
 
In reference to the "bad side" emotions, I built a template that really rubs them the wrong way. It's a line chart with only three lines and several indicators. Oh, did I say it also "free ranges" w/o SL, TS or TPs? Yep. Why make such a template? To begin destroying those "Oh, No" bad emotions. Stick with it and enjoy the ride. Thursday last, it gave me $1000 using CADJPY on 1M TF @1 lot. I've done some tweaking on it and am awaiting signal return to test it further.
 

Dominator4fx

Banned
Apr 5, 2012
66
0
0
Asia
Emotions are not fun in trading when you are chasing a big loss. When pride kicks in, and arrogance...with a little stubborness into the mix..and you chase and chase trying to even just crawl back to even...pushing your account further into the depths. Much easier when you hit a loss to learn to let go of it, detach and become emotionless to it. Save yourself a fortune, learn to manage your emotions and your trading psychology.

In the start it is very much difficult to be able to control our Emotions but then as i have seen personally myself that when i have stability in my decisions then i am better able to control my emotions and manage my trades :D
 

seahawks90

Trader
Jun 4, 2012
1
0
12
its true that we don't have to mix our emotions with forex trading because it will surely leads you to face some huge losses so always try to do it as a professional and while doing trading be serious and don't take it casually.
 

Samuel23

Banned
Apr 20, 2012
171
1
0
I have read all the comments in this thread and it really something amazing. I can find nice comments about trading and emotion. We always forget sometimes that emotion can drives us mad as well as happy. As a trader we have to control it and we should not let our arrogance and ego dominates us. I will ask people to quit forex if they see that these harmful factors overcome them in forex as in long it will affect you and can finish you.