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Thread: Forex trading psychology

  1. #1
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    Forex trading psychology

    controlling one's emotions is vital for every forex trader. :declare: :download:
    Their is this saying "go to where you are celebrated and not to were you are tolerated" in IAFT you are celebrated.

  2. #2
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    Re: Forex trading psychology

    The success that a trader achieves in the markets is directly correlated to oneís trading
    discipline or lack thereof. Trading discipline is 90 percent of the game. The formula is
    very simple:Trade with discipline and you will succeed; trade without discipline and you
    will fail.

    There are three spokes that make up, what I call the ?Wheel of Success?
    as it relates to trading. The first spoke is content. Content consists of
    all the external and internal market information that traders utilize
    to make their trading decisions. All traders must purchase
    value-added content that provides utility in making
    their trading decisions.
    Their is this saying "go to where you are celebrated and not to were you are tolerated" in IAFT you are celebrated.

  3. #3
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    Re: Forex trading psychology

    The most important type of content is internal
    market information (IMI). IMI simply is time
    and price information as disseminated by the
    exchanges. After all, we all make our trading
    decisions in the present tense based on time
    and price. In order to ?scalp? the markets
    effectively, we must have the most live and
    up-to-date time and price information seamlessly
    delivered to our PCs through a reliable
    execution platform and/or charting package.
    Without instantaneous time and price information,
    we would be trading in the dark. :download:
    Their is this saying "go to where you are celebrated and not to were you are tolerated" in IAFT you are celebrated.

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    Re: Forex trading psychology

    The second spoke is mechanics. Mechanics is how you
    access the markets and the methodology that you employ to
    enter/exit your trades. You must master mechanics before you can
    enjoy any success as a trader. A simple keystroke error can result in a
    loss of thousands of dollars. A trader can ruin his entire day with an
    inadvertent trade entry error.
    Once you have mastered order execution, though, it is like riding a
    bike. The process of entering and exiting trades becomes seamless
    and mindless. Fast and efficient trade execution, especially
    if you are trading with a scalping methodology,
    will enable you to hit a bid or take an offer before
    your competitors do. Remember, the fastest survive.

    The third and most important spoke in the
    Wheel of Success is discipline. You must
    attain discipline if you ever hope to achieve
    any level of trading success. Trading discipline
    is practiced 100 percent of the time,
    every trade, every day. :download:

    THE MARKET PAYS YOU TO BE DISCIPLINED.
    Trading with discipline will put
    more money in your pocket and
    take less money out. The one
    constant truth concerning the
    markets is that discipline =
    increased profits.
    Their is this saying "go to where you are celebrated and not to were you are tolerated" in IAFT you are celebrated.

  5. #5
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    Re: Forex trading psychology

    BE DISCIPLINED EVERY DAY, IN EVERY TRADE, AND THE MARKET WILL REWARD YOU. BUT DONíT CLAIM TO be DISCIPLINED IF YOU ARE NOT 100 PERCENT OF THE TIME.
    Being disciplined is of the utmost importance, but it's not a sometimes thing, like claiming you quit a bad habit, such as smoking. If you claim to quit smoking but you sneak a cigarette every
    once in a while, then you clearly have not quit smoking. If you trade
    with discipline nine out of ten trades, then you can't claim to be a disciplined
    trader. It is the one undisciplined trade that will really hurt
    your overall performance for the day. Discipline must be practiced on
    every trade.
    When I state that the market will reward you, typically it is in recognizing
    less of a loss on a losing trade than if you were stubborn and
    held on too long to a bad trade. Thus, if I lose $200 on a trade, but I
    would have lost $1,000 if I had remained in that losing trade, I can
    claim that I saved myself $800 in additional losses by exiting the
    bad trade with haste.
    Their is this saying "go to where you are celebrated and not to were you are tolerated" in IAFT you are celebrated.

  6. #6
    Senior Member kalex76's Avatar
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    Re: Forex trading psychology

    While trading one should go according to the mood of the market ,rather with emotions .

    In trading ,controlling emotions are must.

  7. #7

    Re: Forex trading psychology

    We feel greed while doing trading and we have to control it so that we can able to make a good amount of profit or else we may suffer a loss.

  8. #8
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    Re: Forex trading psychology

    ALWAYS LOWER YOUR TRADE SIZE WHEN YOUíRE TRADING POORLY.
    All good traders follow this rule. Why continue to lose on five lots (contracts) per trade when you could save yourself a lot of money by lowering your trade size down to a one lot on your next trade? If I have two losingtrades in a row, I always lower my trade size down to a one lot. If my next two trades are profitable, then I move my trade size back up to my original lot size. It's like a batter in baseball who has struck out his last two times at bat. The next time up he will choke up on the bat, shorten his swing and try to make contact. Trading is the same: lower your trade size, try to make a tick or two or even scratch the trade and then raise your trade size after two consecutive winning trades.

    NEVER TURN A WINNER INTO A LOSER.
    We have all violated this rule. However, it should be our goal to try harder not to violate it in the future. What we are really talking about here is the greed factor.
    The market has rewarded you by moving in the direction of your position, however, you are not satisfied with a small winner. Thus you hold onto the trade in the hopes of a larger gain, only to watch the market turn and move against you. Of course, inevitably you now hesitate and the trade further deteriorates into a substantial loss. There's no need to be greedy. It's only one trade. You'll make many more trades throughout the session and many more throughout the next trading sessions. Opportunity exists in the marketplace all of the time. Remember: No one trade should make or break your performance for the day. Don't be greedy.

    YOUR BIGGEST LOSER CANíT EXCEED YOUR BIGGEST WINNER.
    Keep a trade log of all your trades throughout the session. If, for example, you know that, so far, your biggest winner on the day is five e-Mini S&P points, then do not allow a losing trade to exceed those five points. If you do allow a loss to exceed your biggest gain then, effectively, what you have when you net out the biggest winner and biggest loss is a net loss on the two trades. Not good.

    DEVELOP A METHODOLOGY AND STICK WITH IT. DONíT CHANGE METHODOLOGIES FROM DAY TO DAY.
    I require my students to actually write down the specific market prerequisites (setups) that must take place in order for them to make a trade. I don't necessarily care what the methodology is, but I do want them to make sure that they have a set of rules, market setups or price action that must appear in order for them to take the trade. You must have a game plan. If you have a proven methodology but it doesn't seem to be working in a given trading session, don't go home that night and try to devise another one. If your methodology works more than one-half of the trading sessions, then stick with it.
    Their is this saying "go to where you are celebrated and not to were you are tolerated" in IAFT you are celebrated.

  9. #9
    Senior Member kalex76's Avatar
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    Re: Forex trading psychology

    Always we have to move according to a definite plan in the trading market,otherwise that may lead to more confusion in the Forex trading.

  10. #10

    Re: Forex trading psychology

    I think trader should be calm and concentrated. In such case he will reach success, I'm sure)))))
    life is great, life is cool, life is so beautiful

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