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Psychology in Forex


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I heard a saying that you should be prepared to lose every single dollar that you invested. It may sound a little pessimistic but you know, this saying can help you control you mood. When you start to lose money, you just tell yourself, well it's okay, it'll come back, instead of getting completely outraged. Anger is going to cost you everything. Just watch out.

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@winning11 yes its true and we need prepare ourself to face any loss because there is a slogan only trade thats amount what we afford to loss. anyway just need chaking our emotion and have to avoid to take revenge mentality than after lossing trade it will come win trade also but we need money management to servive long time in forex.

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many of psychological problem will arise for beginner trader who don't have enough trading experience. but I think all these problem will good handled if we have enough knowledge, and good trading method. the confident factor is also help us handled these good psychological factor.

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If a trade is going red one should not take it on mind

and should know that there are only two situations either a trade may end with profit or with loss

And it is not only one trade that decide our fate but we should know that if we are loosing one trade we shall win another and just keep trying to get more positive trades.

Again no one in the world had all positive trades.

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  • 2 weeks later...

@standard

Yes, psychology in trading usually became problem when we are beginner traders and we didn't have many experiences in forex market.

Because of that, we can't trade well and many times we can make mistakes because we followed our emotions.

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  • 4 months later...

Psychology is Forex plays an important role while trading in Forex. A trader should set up his mind in such a way that he is able to take decisions perfectly when required. Trading in fear or with greed can sometimes become harmful. A trader should stay calm and composed during trading sessions.

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  • 2 months later...

Psychology is Forex plays an important role while trading in Forex. A trader should set up his mind in such a way that he is able to take decisions perfectly when required. Trading in fear or with greed can sometimes become harmful. A trader should stay calm and composed during trading sessions.

That's why Its better you develop three things. One is discipline, two is patience, three is confidence, Now if you have discipline but lack patience in the end you are pressuring yourself. without confidence you always doubt that what you do is wrong. And its not the strategy that make you loss money in trading its your doubt.

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  • 5 weeks later...

Psychological

In Forex there a lot of fear and greed in the Forex and emotions that affect us certainly in the negative trading

Fear result to ignorance. A person who have no idea whats' going on always feel fear. Just think about it. Your in your bed and suddenly you hear news in your living room don't you feel fear? Knowing that your alone? But when you found out that your brother has arrive without telling you then you don't feel fear anymore. Same thing in forex. If you know what your doing you don't feel fear.

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  • 2 weeks later...

a trader have to feel like a real boss and owning a business a serious one.and the capital trader have is his investment ,it is not for gambling purpose or not for fun.a trader have to challange himself not the market or the trend.just challeng yourslef to make everything better and better everyday.and proof it to yourself with your results.

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Some of the ways we can get control over our emotions is by not investing too much money than we can afford into forex. It will be better to invest somethingsmall then carefully try to build that up into a big investment. Also, we should not have the mind that we are going to hit it big in a short time. This kind of mindset will sure make us nervous and anxious while doing our trading.

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  • 3 weeks later...

Control emotion is something hard to do bust have to do,, when we was in emotion. we will not can think and make a decision well..

the best way to control emotion is take a rest for a while from trading and close the chart when emotion come up to brain..

 

But what if we are in the middle of a good and winning trade and our mind or our emotion is telling us to trade some more? Do you think, it would be better to close the chart so that we can control this "greedy" emotion?

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  • 3 weeks later...

 

But what if we are in the middle of a good and winning trade and our mind or our emotion is telling us to trade some more? Do you think, it would be better to close the chart so that we can control this "greedy" emotion?

That's why I have my own notebook and step by step procedure or manual. When I feel an urge to trade more I simply look at my manual and see if its still good to go. If not then I can reason out to my mind that its does not pass my strategy test.

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Emotions will always be there and they tend to get in the way of making a logical decision and sometimes its not easy to overcome them. That is why we need to trade with out mind rather than with emotions since then you can be sure that you making a calculated investment.

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Psychology has a great effect in Forex trading. A trade taken out of anger or in revenge of coping up with the previous losses can only allow you to loose greater amount of money. The best way to trading in forex is to keep your mind fully focused and do not allow it to overcome your patience.

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  • 2 months later...

Its all in our strategy. Our mind set must be one with our strategy. If we think we can invest our time and effort and trade then it just half of it. The other half is mental training also. We must toughen our mind via discipline and patience. In this two character we can trade in forex with iron heart and a will of steal and an aim of gold.

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