Forex Trading Psychology Article
When most forex traders start their journey, they’re looking for a tranquil escape from the 8-5 job and all that it entails and nothing to do with a forex trading psychology article. It makes sense at that point that we’re not looking for something that represents itself as resulting in as many headaches as the job we’re leaving. Of course, it wouldn’t otherwise why would we pursue it? Technical analysis fills the void as it makes you feel comfortable and requires very little thought on its surface. We pay little attention to skills such as those introduced in this forex trading psychology article.
We Should Know Better
We should know better. If trading were that accessible professionals would merely focus on technical analysis at the expense of any other source of information. Technical analysis is attractive because it requires very little knowledge and little new intake of information. That’s not how the world works. It’s a fallen world and needs our continual striving to bring order back to it. This fallenness implies a constant intake of new information daily, not in the form of the same reoccurring trend lines, patterns, and oversold/overbought indicators. I’m not saying these tools aren’t useful just that they don’t have direct predictive power on future movement. They are not the cause of market flow for the most part.
Before I address what moves the forex market, and all other markets for that matter, it’s essential to discuss the concepts in this forex trading psychology article and one’s mindset. Our emotions inspire our thoughts. The feelings involved relate to our need for survival. You could have all the information in the world on the present market but your emotions will determine your thoughts, and your thoughts determine your actions.
State of Mind
The best trading strategy starts with an uncluttered stressless mind state. Optimize your state of mind, and you will not only know how to but when what and how much to trade. We don’t believe this because our practice on paper or backtesting reveals us as geniuses, but backtesting does not involve risking real money. Neither does it include slippage, spread or long waiting periods between profits. It doesn’t add to the fact that markets change or the fact that we tend to only see what we want as opposed to what is.
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