Posted: Wed Dec 14, 2011 9:13 pm Post subject: Basics of Trading Psychology
Many forex traders believe that they have already cracked the "mathematical game" of trading forex. Though this statement can be true for an elite few, the same can surely not be said for all. This is primarily because forex trading, unlike mathematics, does not have a common solution or approach that is followed by every trader.
Each trader has his own set of perceptions, beliefs, foresight, and trading habits and only a carefully planned trading and correct interpretation of trading activities can lead to success. Moreover, emotions of fear and greed may bring more damage than believed in the first parlance as they can make a trader see things that just are not there. It is worthwhile to note here that success in the foreign exchange market is stimulated more by the mind than anything else.
If you have no fears and sense of greed and stick to the basics and trading rules, you may lose some money but you will surely gain in the long run. But if you change your mind and try to compete with fellow traders or take their advice "too seriously", you are bound to face failures. This is mainly because successful traders don't boast about their success stories and treat success and failure as two sides of the coin, while a trader who is "unsuccessful" may portray things alluring to others but not of real in the first place.
Always remember that the forex market comprises several exchanges; hence, always keeps this in your mind before creating a forex trading system routine as, here there are lots of differences between the forex market and other markets. Also, if you are new to the forex market and has been trading only in the stock market, you may not be wishing to get caught through any mistakes.
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum
You can syndicate the last 10 posted messages in our Forex Forums using the file backendforums.php
