In this video, you will learn about forex trading psychology in a different point of perspective. Most traders focus on finding trading setups, analysis of the market using price action, trend lines, etc. They use different indicators. But they seem to ignore the fundamental aspect of trading, which is the trading psychology.
It is important that you understand the fundamental concepts in trading psychology. After a few winning trades, a trade may get over confident, ignore the trading plan, and start playing randomly. Now, the losses are reflected with this trading style, and the trader may over leverage with the trades, may lose the entire trading account in few trades.
This is also called spectral point of no return. In this spectrum, you have the middle area where your mind remains calm. On the left side, you have your mind influenced by negative emotions, fear of losing, and loss of confidence in the strategy. On the positive side, you have confidence, and result oriented attitude. However, you are influenced from time to time by spectral emotional gravity. This is your enemy of your trading psychology. If it takes over your mind, then you start deviating from your trading plan, and lose money. Hence, you must give importance to control your trading psychology.