Forex Trading Psychology Article

 

 

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.

 

Emotions

         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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Forex Trading Psychology Articles | DailyForex

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John Leonardo
 

John Leonardo invests and trades in forex and crypto on a regular basis. He publishes his articles on trading/investing regularly on both the blog and youtube. When trading, John explains how and why these trades were entered so people can learn about implementing the combination of technical, sentiment, fundamental and news trading.

  • Rob S. says:

    I was never into trading but I do believe that knowledge is power and you obviously have to know what you’re doing in order to be successful at anything and especially when it comes to investing and tradings.

    Some folks thrive on something like Forex and I’m sure they know more than I do. You become an expert at what you do and will you make mistakes? Of course! But as the saying goes, “Nothing ventured, nothing gained!”

    • admin says:

      Yes, knowledge is critical but trading seems to involves not just information from technical analysis, fundamental and volume analysis, but also understanding of one’s psychology. If you are aware that your emotional state is affected by real money in the markets, then you can do something about it. You need an uncluttered mind. This uncluttered mind comes naturally form some. Trading firms look for calm individuals when picking future traders. However, you can train your mind to be less affected by emotions through meditation exercises. I’ve spent weeks putting together an article on the importance of meditation and how to do it here. Combine this with visualization and you have a fighting chance, Check out this article on visualization that I spent an even longer time on here

  • CravenATAT says:

    I love what you stated in regards to ‘state of mind’, particularly when you said ‘The best trading strategy starts with an uncluttered stressless mind state’. Uncluttered minds allow us to have a clear slate heading into forex trading. A clear mind allows us a blank canvas for us to begin our work. 

    Also, I agree that technical analysis is attractive, as we don’t need to know much about something to give the technical analysis for it. I also like how you mentioned that we need to continually strive to bring order back to things. This was a great read thank you – and the quiz at the end is awesome!

  • Loes says:

    For every market you go into on the internet, you require some training, whether it’s trading, stocks, affiliate marketing, bonds or bitcoins. Some are risky, some are not. But whatever you go into, take at least, some lessons. Because, for all I know, you want to make money with it, and not lose money. I never heard of the zone, but it makes sense to me, I can see that Andiamolireforex offer support, thank you

    Loes

  • Duncan says:

    Making money is any form requires work; mental, physical or both. There is NO such thing as an “easy” way to make a living; just an easier way than we are used to. Trading is another one of those revenue generating opportunities that requires a person to have resources to start with to increase what they have.

    Is trading a good way to make money? Sure; if you do it right. Knowledge is what you need and it is a constantly changing environment. There is no “fire and forget solution” and making a living for one’s self requires diligence and work. There is no other formula.

    The “uncluttered mind” concept is always a good place to start in whatever endeavour you are pursuing; not just trading. Mental tranquillity helps make decisions, roll with the punches and adapt to new  situations. It’s the prefect position to start from and if a person can maintain that state of mind, they have a greater chance of success at whatever they do.

    Great review and wonderful article. Keep it up!!

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