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Psychology in Forex


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If you have a solid trading plan, you should be able to control your emotion pretty well. Since you already know what will be the best & the worst situation that you will get if market moves in your favor or against you in the other way round.

 

The questions of " when to start trading, stop trading, when to open and close position" much rely on the aspect of your "Trading System" rather than " Emotion". You should know the answers better than anyone else. :)

Edited by apple1937
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I strongly advise all newbies to go through earlier threads in this forum. You will never regret as you will gain lots of precious information and experiences shared by old timers here. From there you will develop and become successful trader in the future.. Good Luck!:) Edited by apple1937
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I strongly advise all newbies to go through earlier threads in this forum. You will never regret as you will gain lots of precious information and experiences shared by old timers here. From there you will develop and become successful trader in the future.. Good Luck!:)

 

Thanks for your advice.

Could you give the link for that thread so we can learn from it

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Guest FloridaTrader
I read that in forex, we mustn't learn about knowledge and experiences how to trade well

 

Not sure where you get your information but I wouldn't take anymore advice from that source. You should post in the beginners section, this isn't general section material new guy.

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Thanks for your advice.

Could you give the link for that thread so we can learn from it

 

Hi Gaban, seriously you really need to spend your time and efforts to go through possibly, each or every of the thread posted at this forum. Although it is impossible to finish all of them within short period and unfortunately,there is no short cut to success if you really want to make Forex trading as your future career. I am sure if you have patient (which is also very important in trading) and put enough efforts, you will soon discover lots of 'unexpected" knowledge that help to improve your trading skill and control your trading emotion effectively. Personally, I do not specifically recommend any trading system to you as you might know the system that suitable for me might not be suitable for you due to we all have different personalities and risk tolerance degree. In fact, my trading system is a mixed of technical and fundamental analysis which I learnt from this forum, fine tuned to suit me through years of accumulated demo and live trading experience. :)

Edited by apple1937
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I read that in forex, we mustn't learn about knowledge 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?

 

 

First of all what you need to have is a trading plan. In a trading plan, you will have all your strategies, the criteria of entry and exit, when to stop trading (maximum drawdown) and your risk management. The thing about trading plan is that it's not fixed and one trader doesn't have the same plan with others.

 

You also need to record the trades that you take as well as the reasons of taking them. This record is useful for a periodical review to see whether you have followed the plan consistently and whether the plan needs some amendments.

 

You should follow this plan consistently and if you feel that you need to do some amendments to improve the plan, you can make the changes accordingly and stick to the new plan.

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Here are 5 practical tips to help you learn to be productive and control your emotions:

 

1. Learn Something New About Trading. Maybe you have wanted to learn more Iron Condors or Credit Spreads, or maybe you have been wanting to learn more about RSI and MACD indicators. Well, stop thinking about it and schedule some time to sit down and do the hard work – pick up a book, get some coaching, watch a video tutorial.

 

2. Perform Some In-Depth Market Research. You have to be curious about something that’s happening in the market right now right? Down times in the market can be great opportunities to do some intense market research.

 

3. Paper Trade Until You Fall Over. I STILL paper trade each week. I test out new strategies, new indicators, new ideas with paper money first before I ever put real money to work. Focus on a particular setup and paper trade it on a simulator 10 or 20 times. A great new tools is thinkorswim’s ThinkBack trading that allows you to “replay” an entire day of trading just as if you were reliving it all over again!

 

4. Write A Trading/Business Plan. If you don’t have one you need one and if you have one you need to revise it monthly. These can always be improved. Take a section of your plan and think carefully about how you can improve it, and then do it already!

 

5. Analyze 5 Completely New Charts. Pick out stocks or ETF’s you’d like to trade and analyze the charts carefully, making a list of the bullish and bearish reasons to trade it. This will help you think carefully about the trade and remove your emotions completely after making the list.

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  • 2 weeks later...

Hi dear i just want to say you that mostly watch the Psychology issue in Forex because the peoples who are doing this business they are totally involve i this business with full of their concentration so that's why Psychology cases mostly seen in this business by the persons in investing the money .....

 

 

 

 

http://www.forexeducation.com/

Edited by Anderson33
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I read that in forex, we mustn't learn about knowledge 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?

 

Trust and follow your trading strategy, even if a trade moves against you. Stick to your risk management and be patient when you trade.

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  • 5 months later...
  • 2 years later...
  • 3 weeks later...
  • 3 weeks later...
It is difficult to say how to control the emotions! Each one has his own way to react on different situation. What I can say is if you're profitable with using your emotions, change nothing, because it will only harm.)

 

That's why I prefer using EAs for trading forex. they don't have emotions and they can follow a plan. I even use EAs while taking part in the forex contest from freshforex. The initial deposit is $100, but the main prize is inspiring. It's a new BMW X6.

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  • 1 month later...
Trust and follow your trading strategy, even if a trade moves against you. Stick to your risk management and be patient when you trade.

 

this i have to agree with, its part of the plan to be ready for loses, as long as your sl is with in manged risk, accept the lose and move on :)

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  • 2 months later...
  • 1 year later...
The psychological condition of trader is usually very vulnerable when the analysis is done not accurate, or less sure with the resulting analysis, so it will be easy to get the psychological pressure and affect the condition of the thinking of the trader
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Guest Moon_shine
It depends on traders to traders about the psychological condition. There are many traders who are excellent in their service and making any number of pips with mind and strategy. While on other hands failures are also there.
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Psychological in business will seek to maintain the condition of our behavior in the business, and in forex trading to keep ourselves fixed in the rules of managing capital so that is able to generate profits
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  • 3 weeks later...
The psychological condition of the trading process will always be influenced by personal interests or from outside influence, and the ability of the traders themselves control the psychological pressure will determine the way of thinking of the trader is always logically appropriate knowledge
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