Emotions And Trading - Why They Are Not A Good Combo
The most important thing for making money in the forex market is not the trading system or your money management ratios, it is how patient you are when it comes to getting exactly what you are looking for and placing the trade at the right time.
If you want to avoid a bloody financial nose when investing in the Forex market, don't let your emotions override your logic. So many investors do precisely that, and this is surely one of the biggest reasons for the high casualty rate in the Forex market. Whenever people get caught up in the moment of realizing huge profits or staggering losses, rationality often goes right out the window.
It is imperative that money traders keep their emotions in check if they wish to make money long term, and that is why emotional discipline is so important to forex traders.
Remember not to become overly excited or emotional when trading in the Forex market, especially when you're trading in highly leveraged capital. Keep in mind that when you trade in Forex, you are there to make money, not to play around or have a good time.
As I said, treating trading like a job is essential, the best traders do it, and even though things might not be as exciting this way, knowing how to wait for the right signals before making a trade can earn you consistent gains. These gains may be smaller than the big home run win, but in the long run smaller consistent wins is better than a few big wins with losses.
Keeping emotions in check is not something everyone can do. People with only personal finance knowledge and skills probably won't be able to do it and will end up going for big wins instead of consistent smaller gains.
Believe it or not, letting a potentially huge profit pass you by is actually better than getting into the market at the wrong time and having to mark your trade as a loss.
"Hurrying yourself is burying your self " is something correct in forex trading. Hurrying unnecessarily leads to confusion and lessens your chance to gain. - 23223
If you want to avoid a bloody financial nose when investing in the Forex market, don't let your emotions override your logic. So many investors do precisely that, and this is surely one of the biggest reasons for the high casualty rate in the Forex market. Whenever people get caught up in the moment of realizing huge profits or staggering losses, rationality often goes right out the window.
It is imperative that money traders keep their emotions in check if they wish to make money long term, and that is why emotional discipline is so important to forex traders.
Remember not to become overly excited or emotional when trading in the Forex market, especially when you're trading in highly leveraged capital. Keep in mind that when you trade in Forex, you are there to make money, not to play around or have a good time.
As I said, treating trading like a job is essential, the best traders do it, and even though things might not be as exciting this way, knowing how to wait for the right signals before making a trade can earn you consistent gains. These gains may be smaller than the big home run win, but in the long run smaller consistent wins is better than a few big wins with losses.
Keeping emotions in check is not something everyone can do. People with only personal finance knowledge and skills probably won't be able to do it and will end up going for big wins instead of consistent smaller gains.
Believe it or not, letting a potentially huge profit pass you by is actually better than getting into the market at the wrong time and having to mark your trade as a loss.
"Hurrying yourself is burying your self " is something correct in forex trading. Hurrying unnecessarily leads to confusion and lessens your chance to gain. - 23223
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posted by X - Men @ 6:13 AM
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