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Forex trading psychology
Written by: PaxForex analytics dept - Friday, 27 June 2014 0 comments
When you begin your Forex market way trading on some demo accounts, it looks like making big profits it’s really very easy and simple. But after the trader moves to the real account he feels that there are a difference between demo and real accounts. This is all about the trading psychology.
Trading at the demo account can bring you a very good experience of the financial market. You can test there your own tactics, strategies and money management, which is one of the most important things in the Forex market. But if you will not care about trading psychology, then you will have problems during your Forex real trading.
It can be compared with computer games. For example, you can be the best soldier in some war game, have a deep knowledge of every weapon; air, land or sea battles. But does this mean that you will be the best soldier in a real fight? No, you will not.
Forex trading provides to traders great opportunities but this market is also a very insidious for those people who take it not seriously. You have to learn the control of your emotions every day while you’re at the demo account. You have to imagine that all those demo funds are real and count every your step in Forex deals. You have to understand the importance of this point until you will enter the real market.
Forex Traders, who don’t care about Trading Psychology, feel the constant and very strong stress during their real forex deals. When they
lose profit, they get angry to everything – to the market, to the quotes, to the Forex Broker and so on. But the only one thing they have to be angry to is their own mind, which was absolutely unprepared for the real trading at the Forex market.
So, every person who wants to become a successful trader must think about Forex trading psychology. Some recommended tips of this thing could be like these:
- Forex is just other type of trading, any trading and every trading likes the respect to it.
- Don’t get angry if you’ve missed some opportunity today. Tomorrow will be another day with new opportunities.
- If you don’t understand what is happening on the Forex Market – stop your activity and wait for another moment.
- Turn off your imagination of profit if the objective situation provides you an absolutely another information.
- Don’t be greedy. If you have a good profits don’t lose your real point of view to the market situation telling to yourself something like: “Yes! I have one big profit now and I will do much more! No matter that the market has been changed”. This is one of the main mistakes of the beginning traders.
- Stop you fear. We can see that in the modern world many problems exist just because of people’s fear. The same is in Forex. Make your trades with confidence, not with a fear.