One MUST follow rules for achieving the BEST result that you should not mix your emotion in your forex trading. Often people fall into fear & greed in taking the position. If you can notice you are now captured with fear and greed then stop and rethink your trade setup. Fear and greed are two sides of the same coin. I am trying to give here some steps to control those emotions in trading.
Forex Trading Psychology
Usually arises when starts to go in the opposite direction of our expected setup. This fear feeling can lead to quickly close all positions immediately to prevent further losses. But often it backs after correction, then trader nothing to do. Sometimes it could make us stay away from entering nice profitable trade, Fearful traders often close a trade too early, once it generates a small profit in the forex account.
This is in contrast to fear, emotion. Greed can show you $$$ on the chart that could bound to ignore or pay less attention than telling charts really. It also occurs when increasing profits and the trader fails to distinguish a long time to get out of position. Greed something impose trader risking more, perhaps traders some time does not follow money management rules like 2% per trade, etc. for the same reason. Sometimes greed takes the form of hope but hope cannot be realistically always.
Real investors Never think for Gambling in forex trading
Beginner traders sometimes caught by gambling ideas in forex trading. But if anybody decides to be a real investor then, first of all, he/she threw away the gambling idea. It can not help you to learn to trade rather it absorbs trader thinking to get rich quickly by trading. So need a proper plan for what to do first.
A successful trader must have some good attributes in their profile. You can enhance yourself by following:
Self-control: Managing own emotions and stress.
Discipline: Make a plan and follow it, observe the strategies outcome.
Self-confidence: It can be accumulated from trading experience, market knowledge, and the self-knowledge of our strengths and weaknesses.
The capacity of acceptance: Need to be mentally prepared to take risks and accept losses. The risk-aware trader can play well.
Persistence and perseverance: the forex market is long term, you must know how to wait and persist to achieve profit targets, and not be discouraged at the first setbacks.
Adaptability: keep an open mind and be receptive to new ideas and changes in the market. It’s wise to take a realistic view of every trade, that does not mean that every trade will be a winning trade.
Self-Review: Learning from mistakes. As spectacular the most common error in trading are risk and panic so evaluate yourself are you overcoming this day after day from your mistakes?
Conclusion: To fight against emotion in trading you need self-awareness, cultivate a good trading strategy, and sticky with this. We found our sticky client generating good profits effortlessly by following our forex trading signals f you have not much time to study your charts & not able to keep an eye on the macroeconomy or you have not any promising strategy then we are ready to extend our hand to support you all the way to make a profit in the forex market.