Forex Trading Psychology
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Forex Trading Psychology
Many experienced Forex traders cringe at the thought of Forex scalping, or Forex short term trading. There are hordes of articles online that will list the dangers of this form of trading and they all guarantee that your Forex account will be wiped out in a matter of seconds if one chooses to trade at such a brisk rate. The experience can be compared to skydiving without a parachute. It can be very thrilling as long as you don't think about the end.
Everyone hears talk about wanting to make Forex trading profitable. Particularly for the novice, this phrase can be heard all the time. After all, everyone wants to make Forex trading profitable.
This might come as bad tidings to some, but you'd find out sooner or later anyway; the key to successful Forex trading is to treat it as a business. It isn't a get rich quick scheme, it's not gambling, and it's not easy.
There is a ton of money to be made in Forex and everyone makes a ton of money. The previous statement is probably the biggest Forex trap in existence. If it was easy, everybody would be doing it. There are plenty of opportunities to make money in the Forex market, but they don't come easy.
Forex trading losses, what a phrase. This could mean so many things, but in Forex this could mean the end. Unfortunately enough a loss is very much likely to associate itself to a psychological effect that would trigger other things too.
Sometimes we spend time over the weekend to read the charts and to analyze the best entry that we would start the trading week very eager to collect pips even before we hit the trigger. This leads to Forex loss.
One of the worst things a Forex novice can do in Forex trading is to become gun shy. You can't be afraid to pull that trigger. The thought process of “...maybe I'll wait a minute to see what the market is going to do...” is equal to giving away money; and not to a good cause.
If you had a bad night, morning or moment, the worst thing to do is carry it into your Forex trading day. Leave it outside.
Every time you meet a newbie or a novice trader they ask you the very same thing, but is it possible to actually start trading Forex for a living? Well it’s not that easy at all to live from trading forex but yes it is possible to trade for a living.
If you're not watching closely, the Forex market is going to get away from you. You have checked your charts.
Every Forex trader, whether he be a novice or experienced, has heard talk of the discipline needed to trade Forex successfully. There is no way a concept like disciplined trading can be over-emphasized.
There have been many articles written about the over-zealous Forex trader. The Forex trader that can't wait to get into the market, bounce around, and do just about anything to keep busy.
Like all businesses, in Forex investing you must have a business plan and it can't be, “make a ton of money”. And even more important than having the plan, is sticking to it.
If you are seeking a serious Forex automated solution and not just some unattainable fantasy, then here are some guidelines that may help you in your quest.
You know that you will have to learn many new ideas when you start Forex trading, but where do you start?