Forex: Why Psychiatrists Make Better Traders Than Expert Economists?

[abdulla1]

It should be noted that millionaire traders, Elder, Williams and some others are in fact professional psychiatrists. And it is not accidental that not the economists are the leaders and most successful traders, but professional psychiatrists and psychotherapists. Think about it. You will become a successful trader when you understand why it happens with Forex. You will understand what your Forex mistakes are, and why you are making them. And when you correct these mistakes you will become a trader who has no psychological barriers and obstacles on his way to better earnings in the Forex market.

 

So, why do the psychiatrists make better traders than economists who, as one would think, have the Forex market at their finger tips?

 

The economists are confused by:

 

— the fact that exchange rates are not always related directly to the economic circumstances in the countries. Well, do you know any economist who would be bidding for low fx rates when the economic situation is getting better and better? Or the one who admits that technical analysis of currency pairs is more important for Forex trading than the fundamental one? Any economist is confident that this can never happen because he knows all the economic dogmas. But it happens in the Forex. After all, how can a trader lose with the currencies moving up and down by the economic rules? The currency will surely react to the economic changes in the country, but who knows when and how? Here is a tip: there is the Elliott fifth way to teach a lesson to the ones who believe that fundamental knowledge is enough (before the trend turns, the currency spurts absurdly by the old trend), to confuse and draw the newbies into the game, while the experts wait for the trend to turn back.

 

— the lack of psychological knowledge that helps to understand the behavior of the crowd. And that is self-evident.

 

Are there any methods to overcome this fear?

 

It seems that every Forex book, every article offers efficient solutions for psychological difficulties experienced by the traders.

 

IN FACT NEITHER OF THESE BOOKS CONTAINS METHODS TO OVERCOME THE FEAR EXPERIENCED BY A FOREX TRADER!

 

But what do these books offer instead?

 

Almost every book of this kind consists of two unequal parts:

 

— the bigger part of the book narrates about traders' problem that interfere with their Forex work and make it unsuccessful (nervousness, doubts, worries, fear, sleep deprivation, etc.). As if the traders do not know their own problems.

 

— the considerably lesser part contains conclusions and recommendations to the traders who are to solve their problems and overcome their fears to become successful.

 

The conclusions are disappointing:

 

Many psychiatrists realize that the new field opens before their eyes — now they may treat traders whose number amounts to millions all over the world and is growing with every day. And since most traders have a dream to become as successful as George Soros and other famous traders, this new field promises to be rather lucrative.

 

One thing is bad though: the overwhelming majority of these new-sprung trader brain specialists do not even know what the Forex is all about.

 

by Alexander Brin

[myregister]

Where you do know? So you want to said Soros is psychiatrist? Andrew Krieger, Bill Lipschutz, or John R. Taylor, Jr. It is so funny that they are graduated from a business based departement. I know that psychology also playing important part in forex but it does not mean because you are  psychiatrist you will be a better trader.

[pepy]

That is just a common wrong issue that resurfacing, psychiatrist could be a better trader than expert economics but it doesn't mean that it would be the best, without any understanding of economic how can we say psychiatrist is a good trader? Soros like you said even not a psychiatrist and can earn better thatn rest of us.

[myregister]

They could be like that but generally expert of economics are better or in this case foreign exchange trader will giving best result compared to psychiatrist, also if we want to say they are better than forex trader just because they know more about psychology is simply outrageous and too oversimplify this discussion.

[pepy]

True, if psychiatrist the best trader around the world i cannot imagine this world gonna be, and also when a psychiatrist able to control emotion doesn't mean they can control the whole market, maybe they can minimize or avoid mistakes that related to emotion but forex is more than just emotion.

[myregister]

Well actually those two are different things, psychiatrist and economist are really different job to each other. Psychiatrist of course have better knowledge of psychology while about forex maybe they know few of it, but economist know forex and economy in depth, also usually this economist has good psychology, you can say if they are expert then it is a top-notch emotion control.

[pepy]

Yes you are right about that BUT psychiatrist could be a forex trader if they want to learn about forex, and actually you don't have too much so called economic knowledge in depth, you see some economist is actually just economist and not traders because they are just someone who analyze without taking an action, they just analyze and don't do an action.

[myregister]

Economist could be a good trader if they want, they must be know how to separate their emotions and control it because they act for the sake of fact on the economy not because they just want to earn or something like that, but still primary motivation is money. Also I think this doesn't  deserve much discussion and it seems that people have their own preference in this case. In the end i must admit no one is better than other in forex.

[pepy]

Economist could be a good trader if they want, they must be know how to separate their emotions and control it because they act for the sake of fact on the economy not because they just want to earn or something like that, but still primary motivation is money. Also I think this doesn't  deserve much discussion and it seems that people have their own preference in this case. In the end i must admit no one is better than other in forex.

It will be still like that economist or psychiatrist won't make much different if both of them are competent with trading, forex is different but economic knowledge would help you a lot especially later, and also fx is not all about economy but it is also about politics as you can see what happened with brexit which is pure political.

[Vaabum]

Everything is quite simple - the more a trader is psychologically ready, the easier it will be for him to get together and get the desired result.