Psychology in Forex

[andry777]

I read that in forex, we mustn't learn about knowledges and experiences how to trade well but also we must control our emotion.

So how did we control our psychology in forex? What must we do so we could know when to start trading and stop trading,

when to open position and close position?

[Nikhil]

Emotion is great factor in forex trading which can destroy any account and my experience i am victim of this and trully saying although have experience but now this time i am falling this trape . i think we must be overcome this otherwise there is great tragedy waiting for us. and its upto you how to control this because there is no shortcut way to overcome this i think.

[andry777]

@Nikhil

Yes, there is no other way to solve problem of emotion except we must try to control it and I think that will need time and patient. We must be dicipline too so we won't make too much mistakes with following our emotion. Our trading plan will help us to control our emotion and also we shouldn't try something which is beyond our capabilities. I am agree if we must take time to be good trader who could control emotion.

[indieover]

yeah i was once a victim of my own emotion. it is not easy to control the emotion. i have not mastered it yet. though i know we should control our emotions. but it takes some practice actually and getting more knowledge in forex so that we won't be controlled by our emotions.

[Nikhil]

@indieover i also think its hard to manage our emotion each time and need more experience to overcome this beacause emotion dont do us well i seen it may destroy us sometime . but to keep active in forex trading we need overcome this with great effort.

[andry777]

@Nikhil

I think you're right. If we wanted to control our emotions well, so that will need experiences about forex matter first.

That will make us knew more about forex so we knew what will we do without any worried. If we knew what will happen,

I mean higher probability, so we could move with greater confidency.

[mownabratadey]

Nikhil : I am partly agreed with you although I am junior than you as trader, I have already tried with my demo trading with greater leverage of about 1:100, and got many of successes, but whenever I tried with real money greed come true, but I controlled my mind, so didn't get the performance as I did on demo.... so We need to be active in leverage & can take the chances of better win...

[Nikhil]

Nikhil : I am partly agreed with you although I am junior than you as trader, I have already tried with my demo trading with greater leverage of about 1:100, and got many of successes, but whenever I tried with real money greed come true, but I controlled my mind, so didn't get the performance as I did on demo.... so We need to be active in leverage & can take the chances of better win...

I think as a newbie its better to use low leverage to trade in real to avoid more loss and its very need to keep money management and about greed its very very important to control because only it may destroy one account.

[andry777]

@mowna

I think if you wanted to trade with lower risk, you must use high leverages and also low lot size. Using low leverage will risk high enough for

newbie. If me, I won't use 1:100 leverages in my first trading in real account. I think 1:500 or 1 :1000 leverage is much better than you used

1:100 leverages. That's only my opinion because high and low leverages will impact to our psychology.

[Nikhil]

@mowna

I think if you wanted to trade with lower risk, you must use high leverages and also low lot size. Using low leverage will risk high enough for

newbie. If me, I won't use 1:100 leverages in my first trading in real account. I think 1:500 or 1 :1000 leverage is much better than you used

1:100 leverages. That's only my opinion because high and low leverages will impact to our psychology.

i am agree with you . i also prefer to use high leverages and also low lot size which instaforex give us and its very better for newbie which involved low risk. i also use this as a newbie although there was low profit and low loss but the most important fact that its real trading for newbie.

[andry777]

@Nikhil

Yes, it's important for newbie to limit our risk in forex market. I like to use low risk although it means I got low profit only.

We could learn how to trade well since we are newbie so we can make profit consistently since we have low amount of

capitals. Our profit will be higher as our capital is higher too.

[boniez]

yup, at least we can control our emotions in the first, before we able to earn a large income, then if if we are able to control our emotions, it is a good time to use a large lot

[andry777]

@Boniez

It's impossible to control our emotion when we used high amount of capital if we didn't learn from lower capital first.

It's different in emotion when we used low amount of capital and high amount of capitals so we must learn from lower

capital first.

[boniez]

@Boniezhttp://www.digitalmoneytalk.com/index.php?app=forums&module=post&section=post&do=reply_post&f=67&t=4747&qpid=60737

It's impossible to control our emotion when we used high amount of capital if we didn't learn from lower capital first.

It's different in emotion when we used low amount of capital and high amount of capitals so we must learn from lower

capital first.

yes, indeed I mean it like that,,, we first have to train using a low-investment fund, and if it is good at controlling your emotions, then it is time to use a large size, but still we have to maintain margin

[andry777]

@Boniez

Yeah, we must pass step by step not we used high amount of capitals and we earned high amount of profits at once.

I think there is no one who could handle it, to gain high amount of profit at once. And that is not good for our psychology

because if we hoped to get high amount of profit in the first time of our trading, I am sure we couldn't do that again in

the future but if we learned from low amount, we could improve our psychology.

[Nikhil]

I think important is to control our emotion its small or big amount because i think if we unable to control then in each there is great change to lost . currently i am victim of my emotion where i lost big amount and after that i learn but the fact that many days passed but still i am unable to control emotion.

[andry777]

@Nikhil

Yeah, we must control our emotions although the amount of our capitals is low capital because psychology will follow us

although we used small or high amount of capital.s

[chuna1985]

I also employ your style when i trade he fore market, high risks in forex trading is profitable and very risky at the same time, but if you trade the forex market with low risk, you will get small amounts gradually but the advantage on the long run is that you will never get a margin call, you will always be in business.

[Nikhil]

@chuna yes it is the main factor i think with small risk we can survive long time if many time we lost and i think if you continue long long time with small risk than sure we will get experience and we all know experience is the mater key of success in forex . and for this i dont taking high risk now but always low risk although getting small reward.

[girlaloosh01]

To think that Forex is just "trading", to think that it's just "business", of course it also involves several things that one MUST consider.

Like what you've said, controlling your emotion is very important. Emotion affects your action. Here in forex, there comes a time wherein you don't have

enough patience anymore because you're main goal is to EARN. This is the basic goal or target of some traders: to earn, to gain profit, anything about money.

BUt isn't that we must set first ourselves in order for us to succeed? In trading, we must learn the value of being patient, and being determined in every step that we do.

[pinoycity]

The topic on controlling emotions in forex have been one of the most-talked about topic in many forex forums, as well in many PTPs with forex sections. Meaning, when you become a forex trader, it is really being strongly suggested that you control your emotions (greed, hope, etc). But then, I am also in agreement that it is quite impossible to do that. Even expert traders goes through nervous situations. I guess, the only one who can really control emotions are robots.

[andry777]

@pinoycity

Yes, that is important to control our emotion well because it could determine the result in trading.

Strategy is important but psychology is important too because both of them will determine the result in trading.

Both of them must be good if we wanted to get profit.

[winning11]

Human beings are emotional creatures and sometimes, emotion can become foibles. It can negatively affect your decision making, your judgement and so on. Sometimes you are too greed, sometime you are not courageous enough. I think that highly resembles the situations that people are facing tough choices. The thing is, in forex, each and every second is a tough situation.

[andry777]

@winning

Yes, we can't keep our emotion always in stable condition but if we have good money management and we have good trading plan, I am sure you will have

limitation so even you are emotion and you made mistakes, your losses won't be more than you could afford to lose.

[boniez]

in fact it is difficult to control our emotion which associated with psychology trading. because as humans we are given a different nature. but provided we are able to train I'm sure will be more accustomed and good for further trading