Psychology in Forex Trading

Discussion in 'General Forex Discussion' started by Rambo35, Sep 2, 2014.

  1. Rambo35

    Rambo35 Confirmed PaxForex Representative

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    Trading psychology is the perception change that you go through once you are actively in the markets trading your own money. When trading in a demo account it seems like it would be easy to make money and there seems to be no reason why you wouldn’t be able to start making money in a live account. Then you make that first live trade and you start to feel indecisive about when to take profits or cut your losses. You have just discovered the effects of trading psychology.
     
  2. triplet

    triplet Active Trader

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    Trading in forex calls for the right mindset. Emotional control is one of the key to achieve consistency in trading forex. Following emotion can make you ignore a well develop trading strategy when making trades.
     
  3. chief

    chief Confirmed Tickmill Representative

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    just a thought from my deepest mind : its a bit irony when people said in search for consistency while trading, and had to control their emotional state to keep.
    all I can say Trading psychology it's a myth, no one ever need this while having a proper trading plan, a result from endless research.
    practically said this myth demand a total emotional control in order to beat the market itself. perhaps we can manage to it somehow, some at random trading day, so how we keep manage to it for whole years ? and for another year to come. the answer is, well-build trading plan. not just a peaceful state of mind.
     
    Linda11 and myfxpt like this.
  4. koyl

    koyl Trader

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    When is comes to forex trading total emotional control is important but at the same time very challenging. Emotion is part of us and so can not be completely eradicated.
     
  5. fxapex

    fxapex Active Trader

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    Yes its right we are basically emotional by nature and we tend to take decisions emotionally, thats why we have to be in total control.
     
  6. samfälldBTC

    samfälldBTC Trader

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    How can you define total control from a trading stand point?

    There are many ways in which humans can have control of a situation... But if you dissect all of the potentials more and more outside of the actual occurrence then you loose control because you focus on potentials.

    Maybe lack of control comes not from bad theory or emotion... but poor measurement.
     
  7. Richard Johnson

    Richard Johnson Trader

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    If you've been trading for a long time, you no doubt have felt that a monstrous, invisible hand sometimes reaches into your trading account and takes out money. It doesn't seem to matter how many books you buy, how many seminars you attend or how many hours you spend analyzing price charts, you just can't seem to prevent that invisible hand from depleting your trading account funds.
     
  8. SurtiTrader

    SurtiTrader Trader

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    Psychology can be include while trading with Forex many aspects of Human Psychology can be comprised and earn money using it.
     
  9. Gerrard Hank

    Gerrard Hank Trader

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    The key element to successful trading is discipline and being able to control your emotions. You can also be successful at trading Forex if you set a goal and take action. But you must have the knowledge to accomplish it.
     
  10. Gerrard Hank

    Gerrard Hank Trader

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    Learning to control your emotions and setting goals are extremely important in Forex trading. They provide direction and discipline, which in turn leads to successful trading. Without them, you will have no goals and your trading techniques won't improve.
     
  11. Gerrard Hank

    Gerrard Hank Trader

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    Forex traders must learn to tackle the psychological problems common to all traders and especially troublesome to day traders and short-term traders: these problems are Gambling Tendencies; Fear; Greed; Self-Discipline. Once you have been able to master your mental state of mind, you will produce better results.
     
  12. Gerrard Hank

    Gerrard Hank Trader

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    It is clear that a lack of knowledge or expertise too much confidence are culprits behind failures or losses in Forex trade and it is possible to tie these factors to emotional problems. They are Greed, Fear, doubt. They have ruined the careers of many beginners. The best way of dealing with emotional problems is acquiring a logical approach to trading.
     
  13. Brads

    Brads Active Trader

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    It is very important for us to grab a hold on our emotions, else we might end up losing all our benefits and also we can end up losing all our capital.
     
  14. Gerrard Hank

    Gerrard Hank Trader

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    Basically, a trader who wants to be successful should have a good money management strategy. This is essential for forex traders to learn and practice in order to develop a successful forex trading mindset.
     
  15. Brads

    Brads Active Trader

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    Yeah, we need to learn a lot, if you wanna become a successful trader. Like risk management and money management, we need to learn a lot to deal with Forex.
     
  16. Andrew101

    Andrew101 Active Trader

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    The more you mentally prepare and accept loss the less psychological effect it has on you. The easiest thing to handle is winning, but trading doesn’t start until you lose
     
  17. Brads

    Brads Active Trader

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    Yeah...! We need to stay calm while we lose, as anger will only lead us to more losses. which may end us up in losing all the money.
     
  18. wisetrada

    wisetrada Trader

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    The way a trader thinks must affect the way he trades. A greedy trader will even fail with the best trading strategy. This is because greed will make him abandon critical risk management techniques.
     
  19. Brads

    Brads Active Trader

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    Yes, you need to control your greed, as it may lead you to total loss, you may earn it once, but it won't be a skill that would always bring you the profits.
     
  20. Andrew101

    Andrew101 Active Trader

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    All traders should take to heart what Brett Steenbarger said "Fatigue and mental overload create a loss of concentration – The demands of watching the screen hour after hour make it difficult to be sharp, creating fatigue effects that are well-known to pilots, car drivers, and soldiers.”
     

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