subject: Various Mental Pitfalls A Forex Trader Needs To Be Aware Of [print this page] Trading psychology is the change in the thinking of a person when he/she actively begins to trade in the forex market. Typically a person gets interested in forex, learns about it, tries their hand at it with a demo-account and walks confidently towards a real account and makes it. But now surprisingly he/she finds the whole feel to it completely different. The game has changed because hard earned buck are at stake. The indecisiveness and the apprehension about making trades get on to the person. This staggering change in the perception about trading is an example of a case of trade psychology.
Trading psychology can greatly influence your trading decisions while you are trading. An insatiable greed for more and the excessive fear of loss in the mind of a forex trader have seen to wreck the trading accounts of many traders.
Demo Vs Real
While trading on a demo ground your still on a training ground. The money is not your hard earned cash and you are unattached to it. Somewhere in your mind you know that the risks are not real. But a real account is like the real war. The money is real, the risk is real and there in comes the fear.
Quick Big Bucks
Forex is projected as place where one can make incredibly profits at superfast speeds where as in reality it is a very classy financial market where deals are not a gamble but a result of information analysis and trading strategies. Traders sometimes tend to lose their patience and keep making trades frantically driven by greed to make glittering big profits and end up making bad sized deals which runs over their accounts
Getting Stuck
Keeping bad trades in the fear of closing them, bloats the losses and zeros the possibility of profits a trader could have made if he had made some good trades. Taking losses as a part of the game and walking away becomes harder when the forex trader is losing out a lot of money and he gets stuck in his misery degrading his forex account.
How to beat negative emotions in forex trading?
Realising that Forex trading is just another market where there are no 100 % guarantees. There are risks involved and they can be effectively managed. Patience is a virtue, the market belongs to people who have the resilience to take losses and yet not take it heart. Do not look for revenge (revenge trading) if you have a bad day. Be satisfied with good gains and do not hold on to trades expecting more. Always look towards the future and learn from every trade. The perfect forex trader does not exist but you can always improve and become a better at this wonderful sport of trading in the forex market.
