Forex Psychology

Note well the material to be discussed at this time. Most of them are experienced trade barriers rather than on how they predict price movement but how they control themselves. Yup, psychology in forex trading is the hardest part in trade.

 

Ask those who have begun the real trading now if any new players or players of old: "part is the hardest one in trading?" Most likely the answer you receive is how to conquer themselves when trading. However trading is involved a man and every man has its advantages and drawbacks of each. Each of us has a greedy nature, fear, doubt, and the emotions that affect Our trading patterns.

 

Now a professional trader should have the ability to manage their emotions and mental interests of their trading. Those who fail here won't be able to last a long time in forex investments. And the bad news is not an easy matter. There is quite a do simulai in their minds then they are able to keep their thoughts and emotions remain healthy in the trade. There is also which takes several months to a few years to be able to manage their mental. There are even more who could not get through at all (for which cannot be passed by, sorry maybe not forex investing is right for you. Look for other more investments with low risk).

Well the emotional problems related to this, there are some bad characters that you need to avoid while trading. I don't care about your everyday life. If you have some bad habits in daily life it becomes our personal affairs respectively. But if you bring some bad habits that will be mentioned below in your trading, in a matter of days until this month there will be a huge loss because of it. So bersepakatlah with me not to bring this bad habit in your trading.

Greedy

Well this is the first disease for those who have earned a profit on forex. All people have a tendency to crave more when they earn the name of money. Just imagine how forex play through, you can earn a profit of 1 million dollars in just a matter of hours only! It is not something extraordinary? If compared to the salary of an employee the amount of Rp 2 million a month, that means they will only earn Rp 100 Thousand/day and even after they worked for 8 hours. While you can get half a million dollars in just a matter of a few hours due to currency moves a few dozen points due to rising interest rates. Isn't that incredible?

The beginner has ever tasted the sweetness of this profit, of course, want a bigger again. If it can be 100 million in one-time trading! This is a problem of greed will appear. Want something more logical considerations and in the absence of careful calculations such as capital, market conditions, and the risks, that is what is meant by greedy.

Those who stuck with the mental attitude of the greedy thought after they won their first 1 million they can repeat it right then and there without thinking of how the conditions of the current price. In such circumstances is usually a logical reasoning and analysis already ruled out and our minds are full of business how to earn more profit. The result is a new open position without understanding that it might just be Our analysis is biased or price no longer move because the trend had passed.

Some cases greed I have ever heard of the Newbies are those who are successful in their first two days in the trade (managed to reach a 50% return for 2 days) and on the third day did the injection due to loss! Well, it is a potential huge forex profits. If we view from the corridor investment, return of 50% in two days isn't that really very magical? That's what I like from forex. Even in the unlikely event the novice last stopped trading in it and let it returnnya in one month only by 50% then it was already very good. Compare with deposit rates are only willing to give you 10% per year. Unfortunately due to the greed of her return loss. Not return to the zero point and even more than that to be a minus.

 

It should be understood, not greedy here does not mean limiting your profit. Does. Legitimate only profit you earn 1 million more after you get the first 1 million profit if indeed his condition allows. Does that mean there is a reason for you to open a new position, for example because of a new trend appears or the presence of fundamental news that support. Once again greedy in forex is going when we want more but don't have a strong reason to acquire it.

 

Then how do I prevent ourselves not to be greedy when trading?

There are some simple advice to help you not greedy while trading:

1. true to your trading system. It also teaches you to discipline.Don't spend time lingering in front of Your forex charts. This will give rise to the desire to open a new position.

2. Have an understanding that not all price movements should generate profit for you.

3. Have a particular target in Your daily or weekly trading. Don't get too high. When it is reached, shut your platform and turn off the computer and then go to bed!

4. the final Solution: stop thinking of your profit when you sleep (Hey don't be scrunched up forehead so dong, I am seriously with this statement).

A list of the above solution may be getting longer when it is forwarded. But the bottom line is the same as the question how not to be a Slacker, the answer is be diligent people. Likewise, the core of the 5th point above is a stop for the greedy. Cukupkan ourselves with the existing profit. Wouldn't it be more fun to sleep after position closing your profit by 30 points compared to trade again and a new position we are still terfloating?

 

Revenge

Well they are ever trapped in greed when they profit will usually experienced loss in their trading-trading the next. Get here if it still does not want to "repent" will then usually also progressed to the next psychological problems called revenge. Those affected by the syndrome of vengeance against the market usually have thoughts put it this way: "whatever happens, the important thing is my turnover first."

 

Instead of turnover, which happens next is greater loss. Why? Cause those who have been exposed to this kind of revenge in mind always think to reach BEP (break-even) in the shortest-in a nutshell (and thoroughly tempos – duh like a proclamation only). As a result the opening position that impressed even though market conditions imposed do not support. End Yes what else if not loss?

Remember that it is not We that can set the market but We have to follow the movement of the market. The market has always been a very good companion for those who are able to follow his movements. Instead the market becomes a ruthless enemy when we bersebrangan with the direction of motion.

Then what should we do if in the months of our first trade occurred loss? A clear revenge is not the answer. The best thing we can do when we experience loss is a review of trading system and all our own shortcomings. Our analysis is still not accurate? Or does our mental yet siao? Even if we still find many obstacles here and there when the real trading account, do not feel ashamed to return to the demo. But come back with a clear plan. What shall we do in the demo? Well this should be answered.

 

The following brief tips that might help you avoid the syndrome of vengeance against the market:

1. the first action when a loss: willing and learn where our shortcomings.

2. Be patient when the loss just as calm as profit.

3. wait for the best opportunity to get back into the market. Should it be if our first trading loss in the next trading more carefully again not even revenge.

4. If your loss is big enough, it is wise to cease trading temporarily until you are completely recovered mentally and can trade it back with a cool head.

5. Think: isn't it already from the beginning We allocate funds as forex risk capital? Does that mean if anything really missing we're ready. Be consistent against the decisions that we take.

 

Doubt/Fear

Both of these result in the same psychological issues: entry at the delayed or even missed the chance of profit. Really We should be careful in Our trading. But be careful not to say fear. Both result in the same. When you take a position to buy or sell at the price then in effect late can turn from the trend that we have predicted that the loss occurred and of course.

 

To be a brave but still be careful indeed not a simple matter. You need to be able to be as it was mastered what you're tradingkan.

Here there is a simple story that can provide a similar analogy: in a drought occurred which resulted in all plants in the fields experienced a death. A major river in the village no longer drain off enough water for the fields of the population. As a result of poverty afflicting the entire population of the village. Local village councilors said the cause of the occurrence of drought is tertutupnya the water flow in the upper reaches of the river by a large trees uprooted and blocking the flow of water. The problem is the upper reaches the river is covered by dense jungle and never in the villagers by hitchhiking.

Well, now they have two choices: remain in their poverty or go into the upper river to reopen obstructed water flow by large trees uprooted. If they want to go into the upper course, they must overcome their fear and begin to learn how the forest conditions. Maybe it does meet with the wild beasts that they have never experienced. Or it can also get lost and not be able to return home. Will be very profitable if there is someone who never go into the jungle and recognize the unprecedented path they travel there to guide them out in the Woods and took care of the tree that is clogging up the flow of the River to their villages.

Or if not, they will stay poor because it is not able to overcome their fears.

The moral of this story is don't stay in the village. UH I mean do not live in fear. Is it better to go into the Woods and took care of the problem even though it had to deal with wild beasts in the forest. Forex is like a wilderness for most people. But that does not mean we should be afraid to deal with it. Especially when you meet with the price movement that frequently so wild uncontrollably. Do not be afraid! Faced with the ability to analyze you and remember don't we have studied so many rescue techniques and analysis of funds we have to prevent the bad possibilities that might happen? And the good news is we as coaches You isn't it?

 

We can still see and be hesitant to sign buy/sell GBPUSD elections caused or otherwise profit from there. Even if we never suffered a loss when trading (I've) does not mean that we become afraid.

The only way to escape from our fears is to recognize how the characteristics of the market and be able to predict the movement of the market correctly. The more frequently Your prediction is valid then it will be even greater courage to do action Buy and Sell. I still remember my first days of trading. At that time I experienced tremendous stress because of not only my position opposite to the direction of price movements but also because of the funds that I tradingkan not my own money! But in order to become a successful trader, I struggled to maintain My analysis of the opinion until a few hours later My analysis turned out to be true.

Some situations require the courage to open and close positions. For example, at a time when news happens and the price moves quickly. As such we are required to truly alacrity and in or out without hesitation (sometimes when like this can be really stressful for us). The following simple tips to beat your fears:

1. Fear happens if we really do not know what will happen to prices. Sharpen Your analytical skills.

2. Think simple. It sometimes simplicity is quite useful. Do not over analysis.

3. the sedition of what had happened. Even if you took the decision because of the incurred losses. Learn where the shortcomings so that happens then fix the loss and start again.

4. don't be too often see the chart if you are not able to control yourself. Fear will be even greater if our position is negative and continue to see it.

5. Remember always to place Stop Loss.

Oh yeah, before this discussion ends, it feels it should be also delivered to You overcome the fear you are in using a forex platform. That is, please act carefully and not grogi when we trade. Many events experienced beginner when she played one of the forex is a click when trading. Well do not let it happen to you. Cases that often comes up is error clicking Buy or Sell. There had been about to open a Buy Sell button terpencet instead and vice versa. As a result the Yes loss and messy. This may have occurred because so groginya si trader facing market movements. I personally never experienced it in the first years of My trading. Twice in fact he ... he ... he. Well not to follow in the footsteps of mine, this warning I gave. If it already happens when you trade, immediately close the wrong position of the click though the risk is we experienced a loss because it spreads and transaction costs. Calculate the loss is paid for Our carelessness. Ok!

 

Feeling Strategy

Believe it or not there are some people who believe that by opening up their account on a certain date they will get the profit along their trading! Even in trade still exist which assume today is a good day in trading and that day is not a good day. I am not the one who does not believe in spiritual values, but in trade, you can't decide or not trading trading just because today is Friday the 13th. If there is no logical reason that causes us to act in the trading, well I classify as such thing as feeling. Regardless of whatever the title, good day, dream your forex chart climb, the opening position only because the graph seems to want to ride or other things that have no logical reason in it.

The forex market is already full with a variety of market sentiment, rumors and psychological problems of the perpetrators. Well, my advice is don't add another issue with one called the feeling. This will make everything look more complicated and moody. This will only make us into trading no longer regularly and do not have a clear system. Everything is based on feeling.

I am not opposed at all to what is called the instinct or intuition of a trader. Sometimes a seasoned trader was able to open a Buy or a Sell position just seconds after he saw the currency movements. And often the position according to the direction of the market. But all of that was born from the experience and hours flown has been long in the forex world. The habit of seeing the movement chart for years to make a professional trader can only determine where the price will move quickly even before he saw the news or other technical indicators. This is due to the natural bottom sadarnya have formed a trading pattern that he had done so far. And it comes when the traders see chart forexnya. Well it is called intuition. Intuition born of experience and long flying hours over the years. When it's reached the point like this is legitimate only in my opinion. I know a trader who was able to trade and profit consistently every month even without the use of an indicator at all!

But those who do not have sufficient flying hours has not been able to use intuisinya well in trading. As a result the Yes it is. Just a feeling-feeling so good that surely ended in berantakkannya trading forex beginners the pattern and messed up the system that has been building over the years. As a result, any losses occurred.

 

If you are a beginner in your trading, advice that can be given is to keep your feelings in a trade. Even when the profit or loss occurs, try to distancing all the feelings that exist. It was not easy but it feels like it will really help us to think clearly and right on target.

Other suggestions that also tastes good is don't trade when the mood We're screwed. Usually in such a condition the patience and poise We're not up to making a lot of errors occur. If there are problems at home the household and it makes you dizzy dizziness, leave your forex platform and wait until your mood is quiet again. Don't lampiaskan Your pique on the forex market.It could be that loss and stress instead of us.

 

OK, it seems like it's just a row of forex psychology issues that you need to learn. There are other psychological factors that may have not been listed here. Let experience teach you in the future. See you at the next lessons.