Revenge – Traders experience a feeling of wanting “revenge” on the market when they suffer a losing trade that they were “sure” would work out. The key thing here is that there is no “sure” thing in trading…never. Also, if you have risked too much money on a trade (starting to see a theme here?), and you end up losing that money, there’s a good chance you are going to want to try and jump back in the market to make that money back….which usually just leads to another loss (and sometimes an even larger one) since you are just trading emotionally again.
This is great, as the markets are open so long, we can enter or close a trade whenever we need to, whereas if you were trading stocks on the NYSE you can only trade during market hours, and once the market is closed you have to wait until the next trading day to trade your position. This forex help tip can really save you when there is a big unexpected political or news release and you need to close your position right away.
Forex Trading Psychology Is a large aspect. of trading Often, results and success come from the psychology, and not a lack of technical knowledge or talent in trading, that is considered to be the primary reason for buying and selling errors. Mistakes are continuously repeated via economic investors of numerous countrywide, cultural, and social backgrounds, which suggests that it is the commonplace tendencies shared among us as humans that lie inside the base of those errors.
I would be lying to you if I said that success in the Forex markets depends entirely on the system or strategy you use, because it doesn’t, it actually depends mostly on your mindset and on how you think about and react to the markets. However, most Forex websites trying to sell some indicator or robot-based trading system won’t tell you this, because they want you to believe that you can make money in the markets simply by buying their trading product. I prefer to tell people the truth, and the truth is that having an effective and non-confusing trading strategy is very important, but it’s only one piece of the pie. The bigger portion of the pie is managing your trades correctly and managing your emotions correctly, if you do not do these two things you will never make money in the markets over the long-term.
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