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Are You Your Own Enemy in Forex Trading?
Written by: PaxForex analytics dept - Thursday, 10 May 2018 0 comments
There are many things that can prevent a forex trader from becoming successful, but one of the worst is being their own enemy in forex trading. Trading the forex market from the comfort of your home computer chair can offer a huge amount of freedom, a nice secondary income stream, and when it is done wrong – enough stress to turn your heart inside out. Forex is a psychological journey, but our own biology may have an important role to play. Research shows that could be to our genes and hormones to compensate.
No surprise that in most human ventures it is a human himself who is his own enemy. And so is with forex. Rushing into trades, thinking the money comes easy here, no-plan trading, or doing that tired, forgetting about the method you trade or even having a beer along with looking at the charts, etc. However, if you are a diligent and consistent one, then it's the market which may lead you to failure. As simple as your perfectly-looking plan requiring certain market volatility or news trading didn't work or you didn't follow basic forex money management rules. It just didn't meet the market qualities so the plan fails and could be thrown into the bin.
Will you even make it as a forex trader, or will you become your own worst enemy, allowing common trading behaviors to amp up your stress to palm sweating levels – killing off any chance you had of
fulfilling your forex dream? It is time to stop reaching for the anti-depressants, re-gain your integrity and clarity, and put a stop to the self-sabotage behaviors that cause the unnecessary damage in your forex trading, and to your health.
Most of the time, however, our emotions get the best of us and lead us to trading losses unless we learn to control them. Many forex traders believe it would be ideal if you could completely divorce yourself from your emotions. Unfortunately, that is next to impossible, and some of your emotions may actually help improve your trading success. The best thing you can do for yourself is learning to understand yourself as a trader. Identify your strengths and your weakness and pick a trading style that is right for you.
Once we are aware that we may be affected by our own psychology, we realize it may affect our trading on a subconscious level. Awareness is often enough to inspire change if we do in fact work to improve our trading. There are several things we can do to overcome our psychological roadblocks, beginning with removing inputs that are obviously biased. Charts don't lie, but our perceptions of them may. We stand the best chance of success if we remain objective and focus on simple strategies that extract profits from price movements.