Posted by Forex Fx on Saturday, January 15, 2011
Most traders lose money because they can not control their emotions. Repeatedly reminded, but still not able to control his emotions. So they are in making the irrational emotional trading.
In currency trading psychology, three emotions are always present are:
Hope, greed and fear.
Hope, greed and fear is a destructive emotion and all traders are always influenced by them.
Hope
When traders lose hope that the price was around, so he can only hope will back again as he wishes and no action whatsoever.
Greed
Greedy traders who tend to make them a great position, eventually loss.
Fear
The panic in the market, how often do we feel?
Where unreasonable price hikes, floating more and more and wanted to immediately reverse the situation. Traders who buy or sell at a position of fear (just like with greed) is usually emotion to enlarge the lots. Finally loss.
These few examples only, and most traders do it. Well, then the necessity of a disciplined trading method to overcome destructive emotions.
So how do you do?
1. You need to find a method that you understand and have confidence to enter the position.
You will never follow the method you do not understand and have confidence, which is important as you need to be able to trade through a pattern of thought will win overall.
You have to understand why and how your methods will work and this will help you avoid you change the trading strategy.
2. Set you analyze when you enter the market, so you do not hurry.
3. Just accept your loss with sincerity. All businesses have a loss and forex trading is no different.
Getting the right trading psychology and trading with discipline is an important part of successful currency trading.