Hi ...
In this article I woult to talk about some thing very important for every Forex trader its fear & greed , and how they can destroye trader profits ..
Some of traders have the attitude of winning naturally so they are not touched about frear & greed , some others do not have, so there chances of success in forex market are not suffisantes , the solution is to develop there own methode to put out there emotions when they trade forex ..
psychology in Forex trading is in the first keeping your emotions in restraint ( fear & greed) , the first emotions of any market are fear & greed , the move leveraged and volatile a market , the faster these emotions will hurt your results , if you trade forex while you have a low leverage , these emotions might not have an effect on your trading results . in forex i will tell you that they're going to come back to you in each position you create ..
Also Whenever you are not a nervous trader , Whenever you will profit more from the market , in generaly negative emotions are not good for a trader ..
if you are a nervous trader I advice you to trade using Scalping strategy to avoid waiting a long time , the position duration is little then make you nervous . ( if you are interested about learning how to trade with Scalping you can show this article : http://tradingg.blogspot.com/2013/03/how-to-trade-with-scalping-strategy.html) .
One other solution is to trade using black boxes ( I don't advice you to trade using black boxes they are more difficult and enigme just I try to give you some examples ) , or Robots ( they are easy and if you have found a good useful robot don't hesitate to use it ) , fear & greed have no place here ..
The humain just he develop and program a Code to trade and the robot applicate at end literally without using fear & greed emotions ..
I can Swear that fear & greed have a big impacts in the market , some forex expert said that they move 95 % of the market , When the market is represented by an uptrend then buyers are greedy and therefore sellers are fearful , and when the market is trending down the buyers are fearful and therefore sellers are greedy ,
price chart = fear & greed ,, profit = greed , loss = fear .
whenever she is your personality fear & greed will play a part of your trading system , you will suffer from them when you make a decision to open a trade position and when you follow it , and also when you close it ..
If you want to avoid fear & greed follow this methodology :
1 - Knowing who you are is the most importante question you must ask your self to determine your personality ( nervous , calm , passionate , + , - ...)
- If you follow your emotions use robots as I tell you above .
- If you are nervous trade using scalping strategy .
- try to monitoring your emotions .
- Use demo account at less for 6 months to diagnose yourself .
- don't let losses discourage you and don't let profits make you greed .
So try do develop your trading style , for me I'm negative/calm and its Good for me , just do not be excitable because the market want you to be that ..
Thanks a lot
Josef amalric :)
Tags : fear & greed , How to avoid emotions in trading , forex emotions , trader psychology , forex trading basics , how to trade , when to trade and when not to trade .
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