Trading Psychology in AmanTrader

amantrader · Newbie Joined: Jul 04, 2011 Posts: 3

Trading Psychology
Managing your emotions

Quite often, the greatest opponent you have while trading is not the market but yourself. When trading, greed and fear often limits the potential returns from profiting trades and on the opposite side of the spectrum can result in greater losses than necessary or turn potentially profitable trades in to losing trades.

All traders (successful and unsuccessful) can attest to holding on to losing trades for far too long for no other reason than the “hope” that they become positive again. This is otherwise known as being too greedy.

Alternatively, the fear of taking profits too early or closing at a small loss when they can potentially be profitable is also another emotional response that needs to be adjusted. Good traders strictly follow a complete trading plan that incorporates money and risk management, entry, exit rules and do not let emotions influence their trading.

When do I move from demo to a live account?

The important move to using a live trading account rather than a demo trading account is a question that is often asked by many new traders. Most important is that you have a strategy in place, once you have become comfortable with a strategy or a few strategies that you have tried, you are encouraged to move to a live trading account.

As great as demo accounts and “play money” is for learning, all too often an emotional detachment is developed to the trading loses with play funds and you will never develop the keen senses to close out losing trades. It’s all too often that serial demo users lose their account balance and continue to deposit remarkable sized amounts of funds. In reality, $100,000 is very hard to replace for most people.

Once you feel you have a comfortable grasp of strategy, control over your emotional misgivings to trading, you can begin your live trading with read funds and expect real returns in profit.

AmanTrader | Managed Account | Managed Forex Account
http://www.amantrader.com

ITtrader · Newbie Joined: May 12, 2011 Posts: 11

Ahh, the most popular question of all time for traders trying to get to the next level!

The good news is, you're not alone. Every trader (including myself) has been there, and to be honest it's one of the most challenging aspects of learning how to trade. Emotions are impossible to avoid with trading, but what you need to aim to do is PREVENT them from MAKING YOU CHANGE YOUR TRADE.

It's ok to feel eager, excited, bummed out, etc during a trade. But, don't let it impact your trading decisions. Here are some tips to help you out:

Write your RULES down on paper. This way you know you will never break them or justify doing otherwise

Practice your trading setups on paper before you trade real money. This way you will have confidence in your system, which helps with the emotions, because you know you've got a proven system that works.

Always trade small $$$ amounts while you are learning. If you find yourself too nervous while in a trade to the point where it clouds your judgement, just trade smaller lots.

I hope this helps!

JacqStone · Newbie Joined: Jul 27, 2011 Posts: 134

It is really important to have a strict discipline in trading. Successful traders know how to control their emotions so not to affect the way they trade. Demo accounts are such a big help to understand how Forex operates in the market. In these account, they can gain experience, can build their trading techniques and skills, and can improve their discipline towards trading.Once they're satisfied and confident with their talent, they can now go for the real trading market.

We just launched a very interesting competition called IKOFX DEMO BLAST; this continuous contest will pick the best 5 trader whom gain profit / highest equity in their demo account will won prize as much as $1000 into their separated live account! So who doesn't like the idea of earning money with $0 capital & 0% risk?... Please feel free to come and visit:
http://ikofx.com/en/IKO_demo_blast.php

IKO Forex Limited - The Ideal Place for Forex Trading

[ About Us ] - [ Submit Article ] - [ Recommend Us ] - [ Contact ] [ Disclaimer ] - [ Privacy ] - [ Terms of Service ]