Forex trading psychology
The psychology of trading goes beyond a single term or definition, as it encompasses all the emotions and feelings that a typical trader will encounter when starting to trade.
In the psychology of trading it is explained how you want the emotions that encompass a trader to be managed and controlled, but above all you want them to be used in favor of the trader.
It is important to note that this is not something that is mastered from one day to the next and it takes time to fully understand it, but in order to understand it, people need to know that it exists.
How to begin to understand what it is about?
In the psychology of forex trading, what is called: “enemies” are recognized, these enemies are nothing more than common emotions that take over traders and directly affect the operations they carry out.
These emotions are: Fear, Greed, Revenge and Euphoria.
Now, these emotions directly affect traders as they come from specific situations. For example, when a trader has losses, it is possible that the panic to have more losses makes the trader not want to take risks with other operations and this limits him.
Although being able to fully handle this requires a more in-depth study, we can advise you that:
– You should not compare yourself with other traders.
– Do not think that a loss means that everything you will have next will only be lost.
– Keep in mind that at the beginning you will always make mistakes.
– Always be governed by your commercial strategy.