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Psychology Of Forex Trading

Without doubt, psychology has a critical role in Forex trading. Successful trading is nearly impossible without controlling the emotions during trades. But reaching required skills to manage your psychology in trading demands experience and practice. Here get some practical advice to take control on your emotions during your trades.

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Psychology Of Forex Trading

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  1. 24.PsychologyofTrading Excitementsandpsychologyhaveabigimpactontrader’s performance. There are many traders that simply fail becausetheycan'tcontroltheirexcitementsduringtrades. But,asIhaveamottothat“everyaveragepersoncando Forex successfully”, I'm sure that by training, using right trading strategies, right money and risk management methodsandfollowingasolidtradingplan,allthebadhabits andpsychologicalobstaclescanbeovercome. Havingatradingstrategyfittoyourpersonality,lifestyleand dailyhabits(astrategythatyoufeelcomfortablewith)isa keyfactortocontrolyourpsychologyandexcitementsduring trades.ThemainreasonthatIhaveintroducedacollection ofvariousstrategiesinthisbookistogivethetraderavast optiontochoosehis/herbestsuitedone(s).Apracticallyhigh winning rate strategy is the first step to boost your confidenceanddecreaseyourtradingstress. Stress comes from uncertainty. More uncertain you are abouttheoutcomeofanevent,morestressfulandpanicyou willbe.So,ifyoucangetassured(tosomegoodextent) aboutyourtrade,yourstresswilldramaticallylessenand you can control your psychology during the trade. My emphasisontheaccuracyofthetradingstrategiescomes fromthisfactthatIthinkitisaverysignificantfactorthat youcanrelyontoovercomethestressoftrading. 81

  2. The second step toward controlling your psychology in tradingisasimple,soundriskmanagementplan.Inchapter 21Iurgethetradertosetthebeststoplossandtakeprofit targetsandcalculaterisk/rewardratioofanysoughttrade beforeenteringit.Ifyouknowthatyourmoneyandtradeis underfullcontrol,thereisnotanyreasontobestressfulor panic. To give this a 100% practical usability I highly recommend you to prepare a pre-trade checklist (see chapter23)andwritedownthefullanalysisofyourtrade (includingthestrategiesorsignalsused,stoplossandtake profittargets,risk/rewardratio,psychologicalmood,etc.).In fact,theaimofthispracticeistotransfertradingprocess from mind to paper and from a psychological to a mechanicalstate.Asmuchasyoucandetachyourexpected tradefromyourmind(andhencepsychology)anddoapre- trade on paper, you will be able to make more realistic tradingdecisions. Alwaysbearinyourmindthatthemarketisaseparatething fromyourmind.Sittinginaconfinedplaceinfrontofyour computermaymisleadyouthatthemarketactsaccordingto your wish and desire but this is completely wrong. The outsideworldactsonitslawsineffectofmanyrealfactors that are absolutely not under your control. Some novice traders make this big mistake and trade without realistic analysistoooptimistictosucceed.Apositivemindsetneeds for successful trading but don't forget that only doing accurate, realistic analysis you will reach your goals. You decideonthemarket,notthemarketactonyourwishor desire. 82

  3. 25.PredictiveForexTrading AlleffortsofaForextradershouldbefocusedongetting somecluesfromthemarkettoguessorpredict(tosome extents)thefuturemovesoftheprice.Usingthestrategies andmethodsyouhavelearnedinthisbookyouaredefinitely abletodothistask.Dothefollowingexercisestofindhow aregoodatdoingthischallenge.Youcanfindtheanswersof theexercisesattheendofthebook. Exercise15.Lookatthebelowchartsandtrytofindthevalidsignalsthat helpyoutopredictthenextpartofthecharts.OfferthebestSL,TP pricesandcalculatetherisk/rewardratioofthetrade. Figure25.1Findtradingsignalsandpredictthechart 83

  4. Figure23.2Findtradingsignalsandpredictthechart Figure25.2Findtradingsignalsandpredictthechart Figure25.3Findtradingsignalsandpredictthechart 84

  5. What you read is a free sample of “The Ultimate Forex Trading System-Unbeatable Strategy to Place 92% Winning Trades.” From this book you will learn top 8 Forex trading strategies (92% winning rate), the best money and risk management method, high performance trading and the best advice to control your psychology during trades. All required tips to become a successful trader are included in this book. You Can Download This Book Here: You Can Download This Book Here:

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