Psychology in trading

Discussion in 'Forex Education' started by ituglobal, Aug 21, 2014.

  1. ituglobal

    ituglobal Active Trader

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    The world of trading is full of things that work and things that don’t work. To be honest, there are many successful traders who’re also teaching people how to become successful. There are many signals providers who provide winning signals. There are many strategies that work and there are many programs, like webinars and trading rooms which can help other traders to improve significantly. Unfortunately, in spite of these, the percentage of losers still remains above 90%. Why?
     
  2. Rambo35

    Rambo35 Confirmed PaxForex Representative

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    It is same as in every aspect of the life. There are successful and not successful people. In trading is the same.
     
  3. triplet

    triplet Active Trader

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    Forex market is always with the unexpected movement. And getting the right trend is always difficult. In order to succeed one has to be equip with skills and strategy to beat the market. Even when it seem there are lot of losers so also there are successful trader. I think its a matter of determination.
     
  4. stephane

    stephane Trader

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    99 % of people fail because they are looking for the "Holy Grail" system, the one that does not exist. Forex is about predicting the future, where something unexpected may always happen. So getting your stop loss hit does not necessarily mean there is something wrong with your trading plan, but most traders do not understand that.
    Another thing: forex is a zero sum game. As big banks and big funds are consistently winning, someone must be consistently loosing. Forex is very tough, and you have to understand that quickly or you will get your margin call very soon.
     
  5. tolasforex

    tolasforex Trader

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    Do not trade forex by using emotion. Trading by emotion can make us lost in great money even all money deposited before. A trader should have a good psychology in his trading activity. He should control his emotion when he is in profit or loss. I trade forex in accent forex.
     
  6. stephane

    stephane Trader

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    Tolasforex, what does precising which broker you're at add anything to that post ? You could have spared us that. :confused:

    My broker is Tickmill, I like it very much too, but I do not need to remind it everytime I write a post in this forum ! ;)

    And to come back to that thread, the best book I may recommend about trading psychology is "Trading in the zone" from Mark Douglas. It s an eye opener.
     
  7. stephane

    stephane Trader

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    Another thing. I used to be in Casey's Stubbs traderoom. He said once that they made a survey, and despite the fact they were profitable and were giving their trades in real time, only 30 % of the peopple in the room managed to be profitable. I do not know whether it was because of bad emotions management or because with different accoutn value you have to manage your stops differently or what, but that just a fact.
     
  8. myfxpt

    myfxpt Master Trader

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    Discipline. It is the single most important factor for us all. The discipline to strictly adhere to a trading strategy is a whole lot more difficult in the real world. We're all guilty from time to time, agree? Have you ever jumped into a trade before a signal is confirmed, or moved a stop-loss, or taken profits too soon? If we could just stick to our plan, we might actually be consistently profitable!
     
  9. Steve Lock

    Steve Lock Active Trader

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    I liked a small tutorial about trading psyhology which freshforex has on its website. they call it 'trader's path' and it includes 7 steps (or levels of a trader's way). There are a 'true goal' and a 'false goal' on every steps, so this tips help to concentrate on your experience and make right conclusions from it.
     
  10. Fischer

    Fischer Confirmed IronFX Representative

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    You need to shut down your emotions as soon as you enter your platform, this is the first step to trade successful, then second will be to following your trading plan and use stop loss
     
  11. Dmitriy Enrst

    Dmitriy Enrst Active Trader

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    It is important to learn not to take hasty steps during the burst of emotions. It is better to go for a walk, away from the computer and then start trading calmed down. It would be better.
     
  12. koyl

    koyl Trader

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    I totally agree with you most traders lack discipline to follow trading plan. They focus mainly on how to earn profit easily without putting much effort and patient to understand the market.
     
  13. assaad747

    assaad747 Trader

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    just you need to beat your emotions by setting a trading plan every day that contains all of the things that you will use to trade ...
     
  14. radex78

    radex78 Active Trader

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    Psychology trading has high role during trading, almost decision among trader sometime based on emotion, which they have emotion to making profit and will take the risk, if any trader want to become successful trader they need three thing, first profitable system, second good money management and third good psychology trading
     
  15. There are so many different elements that causes people to lose money while trading. But if you are talking about external services than lets start with the fact that there's definitely not "a lot" of profitable signal services, and not "many" programs or webinars that will actually help you earn money. The truth it, there are only few. Most of them are made to take the money they charge and not more than that. Consider that a real successful trader has no interest in selling this type of services, as he would waste precious time and effort while he could make millions in trading, and not selling some service for few more bucks.
     
  16. radex78

    radex78 Active Trader

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    Yes if any expert trader they selling product maybe they still want more and this is greedy, sometime we found certain ads with high tempted offer which software can making tousand pips a month and profit thousand percent each week, but I don't believe wth this offer because as my experience forex is risky business
     
  17. MarkTrader

    MarkTrader Trader

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    My plan is after I find a Broker and play with the demo account is to open a real account with little deposit and start getting used to invest real money. I will go with this plan for a while to be able to control my emotions and develop my own strategy. However, finding a suitable Broker with a nice user friendly platform, (preferably mobile app) seems to be time consuming too.
     
  18. radex78

    radex78 Active Trader

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    Currently some broker offrer low minimum eposit and this is giving advantage for retail trader to start in real account, practice in demo acount is good as early preparation and test any system trading and strategy forex and learning, but to built up better psychology using real acont is better than demo
     
  19. MarkTrader

    MarkTrader Trader

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    Thank you for your advice.Can you recommend a reliable broker which offers low minimum deposit?
     
  20. f4forex

    f4forex Active Trader

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    I guess forex trading is quite challenging and the reason why 90% traders fail is that it is a very professional market where you fail whenever you make mistakes. It is good to trade forex when you are mentally relaxed as forex traders have the flexibility of doing it whenever they want to trade.

    Not sure about what kind of broker you are looking for.. ? Perhaps you can look at the earnforex broker list. Many of these accept minimum deposit to start.
     
    Enivid likes this.

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