abdulla1 Posted June 11, 2011 Share Posted June 11, 2011 The key to making money in the currency exchange market is to avoid emotional decisions and to follow a carefully thought out strategy that takes the current market and history into account. Going with your gut is not the way to go in the Forex market. Going with your gut could cost you money. Forex trading is a highly volatile market where emotions tend to run high. Emotions can influence your trading decisions, unless you have a strategy planned in advance, and stick to it, no matter what you think you're seeing at the moment. The keys to success in Forex are system, analysis and perseverance. Most experienced traders tell novice traders that they need to develop a system — and stick to it no matter what. Letting your emotions rule your decisions can hurt your trading in a number of ways. The system tells you when to buy, what to buy, when to trade and what to trade for. By sticking to your system you'll maximize your profits. A system based on technical analysis of historical market trends is one of the most potent tools that you can utilize if you're just getting started in Forex trading. Many traders, with years of experience, continue to use this system to keep the profits rolling in. Many traders will tell you that when their gut instinct and their system collide, the system is almost always right. Using a mechanical system takes the emotion out of your trading, eliminating one of the reasons people fail. Your system doesn't sway with emotions. It sticks to a tried and true course. To be effective, your system — whether you develop your own or adopt one created by someone else — should identify the entry and exit point of your trade, mitigating factors, and an exit strategy. In general terms this is as follows: Under what conditions should I acquire a currency? For instance, you may have a buy order for when a particular currency drops more than 5 pips because your analysis tells you that that's likely to be as low as it goes. When should I trade one currency for another and for which one? There are two reasons to exit — to maximize your profit, or minimize your loss. That means you have a set stop-loss order and a set take-profit order at which point you cash out your trade. What factors will I allow to change that decision? While the money market moves in predictable patterns, there are always individual variations of a trend within those patterns. If you've taken those variations into account, it will be far easier to decide when a factor really does make a difference, and when it's just wishful thinking. If you're not careful however this is where emotion could come into play and sour deals for you. How will I trade out of a currency? Your exit strategy may be as simple as a stop-loss order when my loss hits 5% or a take-profit order when I make 40% profit'. Another key is perseverance. Analysis of trends in the market will show you that the market moves in dips and spurts within overall patterns that are predictable. No trend moves smoothly in an up or down line — there are inevitable periods of time when values suddenly spiral up or down based on some outside factor. These are the times when emotion can hurt your portfolio. When a currency that you're holding takes a sudden dip south, it's tempting to succumb to panic trading, cut your losses and run even if your system tells you to hold on. On the other hand, it's easy to catch the rising excitement as a trade starts increasing in value and scramble to buy more of the same. These are exactly the times to rely most heavily on your trading system. It will tell you exactly when to trade for maximum profit. If you control your emotions and stick to the system you'll maximize your profits andall should be smooth sailing. by David Mclauchlan Quote Link to comment Share on other sites More sharing options...
shoaybkhan Posted July 29, 2013 Share Posted July 29, 2013 The same goes for losses – don’t treat a single win as your accomplishment. It’s just a part of the routine process of trading Forex. Quote Link to comment Share on other sites More sharing options...
euro Posted October 4, 2013 Share Posted October 4, 2013 Well, I don't have that much emotional problems when I trade. I just have one problem and that is I check on the price constantly to see where my trade is heading but I guess that is just to get a feeling of it and whether I should exit or not but I look at the price a lot. I also get anxious if its not moving high enough but its not that bad. But other than that, I manage my risks well enough so I do not get that stressed out over them. Quote Link to comment Share on other sites More sharing options...
Bagus Posted October 26, 2013 Share Posted October 26, 2013 most traders experience the same emotional problems in the trade that we both are so difficult to control your emotions in trading and in fact often makes us experience a loss in trade because trade is not able to control emotions Well, I don't have that much emotional problems when I trade. I just have one problem and that is I check on the price constantly to see where my trade is heading but I guess that is just to get a feeling of it and whether I should exit or not but I look at the price a lot. I also get anxious if its not moving high enough but its not that bad. But other than that, I manage my risks well enough so I do not get that stressed out over them. Quote Link to comment Share on other sites More sharing options...
standart Posted January 20, 2014 Share Posted January 20, 2014 risking real money and deal with changes in market make traders easy to get frustration. moreover if they are get loss result over and over again. the best thing to deal with the market is have good trading strategy. and traders always implement the strategy in discipline manner. Quote Link to comment Share on other sites More sharing options...
surya77 Posted February 8, 2014 Share Posted February 8, 2014 emotions and can't control you self may can become big problem in here, you may can think how to find the way for go profit. so the way for you to become profit run is keep you emotions don greed. Quote Link to comment Share on other sites More sharing options...
myregister Posted November 18, 2014 Share Posted November 18, 2014 You should mix it but you should control it dude emotion is bad if you put it in the bad place, like fear when you fear not in the right time you will loss the chance to make profit, but if you fear when the others are greedy, like the price rising abnormally then you are in the safe line. Quote Link to comment Share on other sites More sharing options...
Alice Frampton Posted February 20, 2015 Share Posted February 20, 2015 I think we can’t say like that as emotions are part of human and that means we can’t avoid it any given cost so that’s why it’s better to have plans to stop us from this sort of problem rather than thinking of completing removing it. I am trading with OctaFX broker and they really help me control my emotions, it is all thanks to their epic system where I get to use the swap free account, so I could do long term trading without any charges. Quote Link to comment Share on other sites More sharing options...
myregister Posted February 22, 2015 Share Posted February 22, 2015 In this case i do agree that we shouldn't mix our emotion with trading especially if we don't know how to control it, but if we can do that then mix it in enough amount could help us. Like fear, also help us to lose if we know when to be fear in the right time. Quote Link to comment Share on other sites More sharing options...
pepy Posted May 21, 2015 Share Posted May 21, 2015 In this case i do agree that we shouldn't mix our emotion with trading especially if we don't know how to control it, but if we can do that then mix it in enough amount could help us. Like fear, also help us to lose if we know when to be fear in the right time. Of course we shouldn't mix it, what do you think dude? If you mix it your trading will be in vain, you will easily lose your trading and it won't bring much benefit for you. I see forex and emotion should be separated in the different so then you will optimized your trading well. Quote Link to comment Share on other sites More sharing options...
myregister Posted June 3, 2015 Share Posted June 3, 2015 I am talking about controlling not mixing those things. Love it or not the fact that emotion still driving us to trade is a fact. If you don't have passion you won't trade better there is no passion for us. If you can control it you can make emotion does not mixing with your trading. Quote Link to comment Share on other sites More sharing options...
pepy Posted June 10, 2015 Share Posted June 10, 2015 I am talking about controlling not mixing those things. Love it or not the fact that emotion still driving us to trade is a fact. If you don't have passion you won't trade better there is no passion for us. If you can control it you can make emotion does not mixing with your trading. Your emotion is what you should not mix, remember you will be as good as forex robot if you can trade without need to mixing your own emotion. Mixing yourself with such emotions will lead you to bigger loss and i think that is a bad way to trade, stop mixing your emotion with trading. Quote Link to comment Share on other sites More sharing options...
myregister Posted June 15, 2015 Share Posted June 15, 2015 You cannot take my emotion out from myself because i am human, emotion is bound to me. What can i do is only controlling and let me tell you something that i am not robot. I wonder if you trade just like robot out there, but for me controlling emotion is what the best i can do and could minimize my own risk. Quote Link to comment Share on other sites More sharing options...
pepy Posted June 16, 2015 Share Posted June 16, 2015 You cannot take my emotion out from myself because i am human, emotion is bound to me. What can i do is only controlling and let me tell you something that i am not robot. I wonder if you trade just like robot out there, but for me controlling emotion is what the best i can do and could minimize my own risk. Of course but i think you should putting your emotion aside, i mean you are you not your emotion. That is part of you but you can get rid of it. By learning how to do that you can at least have some views about how to do that and we can see a lot of traders able to do that too, so that is not a big deal. Quote Link to comment Share on other sites More sharing options...
myregister Posted July 16, 2015 Share Posted July 16, 2015 Of course but i think you should putting your emotion aside, i mean you are you not your emotion. That is part of you but you can get rid of it. By learning how to do that you can at least have some views about how to do that and we can see a lot of traders able to do that too, so that is not a big deal. You can't i don't know where did you get something like that but based on my experience i cannot remove my emotion, my fear, my greedy, what i do right now is trying to control it. This is why i think mixing it could be helpful as motivation but remember it is all about CONTROLLING. Quote Link to comment Share on other sites More sharing options...
pepy Posted July 18, 2015 Share Posted July 18, 2015 The proof already exist in many traders around the world, letting emotion go is not an easy task but still feasible to achieve even you must struggling to make it true. I am trying to and in some cases i don't mix my emotion so when i lose i will be normal or even when i am making profit. Not getting excited or frown. Quote Link to comment Share on other sites More sharing options...
myregister Posted July 20, 2015 Share Posted July 20, 2015 The proof already exist in many traders around the world, letting emotion go is not an easy task but still feasible to achieve even you must struggling to make it true. I am trying to and in some cases i don't mix my emotion so when i lose i will be normal or even when i am making profit. Not getting excited or frown. First it is better if you quoted my post so i know about that, about proof i don't need that because i am living proof of myself. I agree that we shouldn't mix it but it does not mean that you can eliminate it. Eliminating your emotions in fx trading means that you don't want to trade anymore, you got what i mean? Quote Link to comment Share on other sites More sharing options...
pepy Posted July 26, 2015 Share Posted July 26, 2015 For what mixing both of these, it doesn't bring any benefit for every single trader who want to trade, see the example of someone who are trying to mix it they will surely loss and have very low percentage to win over their trading, even all of them win their trading that is just pure luck. Quote Link to comment Share on other sites More sharing options...
myregister Posted September 24, 2015 Share Posted September 24, 2015 Why someone should mix it, first of all that will lead to more losses secondly you will never ever make profit and lastly it is better to control your trading, controlling it lead to better risk management where you can be so trading profitable compared to the others. Quote Link to comment Share on other sites More sharing options...
pepy Posted November 14, 2015 Share Posted November 14, 2015 Of course, without doubt it should be separated and let your emotion go is the best solution for trader. As for control of trading i beg to differ, even someone who don't mix their trading cannot control the trading, because after we open the position that is up to market and we can't control market, right? Quote Link to comment Share on other sites More sharing options...
myregister Posted November 16, 2015 Share Posted November 16, 2015 Yes, never mix your emotion with the others but i don't recommend like what you said, ELIMINATE? that is nonsense buddy since you derive by emotion the best course you can do of course by controlling your own emotion. Separate it from your trading and control it,it is like controlling beast if we want to use parable. Quote Link to comment Share on other sites More sharing options...
pepy Posted February 6, 2016 Share Posted February 6, 2016 Oh my gosh, you don't have to i already know about what you want to say here, To be exact we need separate it isn't it? So don't try to let it it live in your mind! Control it? LOL i've never know somebody can control their greed or fear. If you control it then it means you trade with it and trade with it is a very bad idea. Quote Link to comment Share on other sites More sharing options...
myregister Posted April 18, 2016 Share Posted April 18, 2016 Eh? Never know? I think this man will remind you of his famous quote. Warren Buffet, he is an example even not into forex but in stock. Be greed when others fearful and be fearful when others are greedy is important quote to know when to unleash your emotion, which means you must know how to control your emotions and unleash it at the right time. Quote Link to comment Share on other sites More sharing options...
pepy Posted August 10, 2016 Share Posted August 10, 2016 Well thanks for the information but he is stock man not forex man. If you want to give some example maybe you can try for Soros . I personally think that we should able to separate emotions from trading since there are bigger chance we cannot control our emotions and the worst our account could be lost because of that. Quote Link to comment Share on other sites More sharing options...
myregister Posted August 27, 2016 Share Posted August 27, 2016 But that is the concept is right and i want to tell it to you, it is irrelevant whether he is stock man not a forex man. Emotions is bad but not evil, it is humane. I know that involved emotions in foreign exchange trading is bad so this is why i control or trying to control it so it don't have to be mixed and let me tell you no one can eliminate their emotions unless they achieve enlightenment. Quote Link to comment Share on other sites More sharing options...
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