When it comes to trading, emotions are the enemy. They can cloud your judgment and lead you into costly mistakes. To really succeed, you must control your emotions when forex trading.
“I’ll just wait for a few more days.” – Wrong!
Don’t wait for the market to come to you.
Don’t wait for the market to go your way.
Don’t wait for a better entry point or exit point (even if it’s feasible).
“A little bit more won’t hurt…” – Wrong!
It’s easy to get sucked into the mindset that you can make more money by taking more risk. You may think, “a little bit more won’t hurt.” But it does!
When you overtrade, one big mistake can ruin your whole day or week. If you’re not careful, this can lead to a loss of confidence in yourself and your ability to trade effectively at all times—which means that if things don’t go according to plan from here on out, there’s nothing stopping them from getting worse than they already were before (or even worse).
“It’s going to come back” – Wrong!
“It’s going to come back.”
This is a common misconception among traders, especially beginners. They think that once the market falls, it will soon bounce back and be as good as it was before. This is not true! In fact, if you have been trading for a long time and are following the right strategy (which we’ll get into later), then there’s no way your account can sustain losses forever. The only way to avoid losing money in this situation is by either closing out all open positions or placing stop orders at certain levels so that when they hit their target price (or better), they automatically close out those positions without any further action needed from you (i.e., no one has any reason left anymore).
“Everyone says it’s going to go up. I’m just sure of it.” – Wrong!
Don’t be influenced by others.
Don’t listen to the crowd.
Don’t be a sheep, or “just following” everyone else’s opinion, even if it seems like everyone else is doing well at this point in time. This can lead you into making bad decisions which could cause you serious financial losses later on down the line (and maybe even result in losing your job). If something doesn’t feel right then trust your instincts and go against popular opinion!
“I know when to sell.” – Wrong!
It is absolutely crucial that you have a plan for your trade. If you do not have a plan and stick to it, then you will likely lose money. A good strategy requires discipline and patience. For example, if you have decided that at 9:30 AM EST on Tuesday morning (the day after Thanksgiving) there will be an increase in volatility due to news about President Trump’s travel ban being lifted by the courts; then this would be an ideal time for trading with directional bias toward long positions because of possible gains from higher volatility levels.
A great way to ensure success when trading forex is by staying flexible enough so that changes in conditions don’t throw off your entire system or strategy entirely!
“I should have sold it yesterday” (but you didn’t) – Wrong!
You should have sold it yesterday.
This is one of the most common mistakes traders make, and it happens because they get carried away with their emotions during a trade. They forget to take into account any external factors that might influence their decision-making process, including things like market conditions or technical analysis indicators. If you’re in a position where you feel like you should have sold your position already but haven’t yet, here are some tips on how to avoid this mistake in the future:
Make sure your analysis makes sense! Your emotions can cloud your judgment when making trading decisions; make sure every piece of information is backed up by facts and figures before making any kind of move based on what feels right at the time (or even based on how other people think about something). This will help prevent yourself from getting caught up in emotional swings that may cause unnecessary losses later down the line.* Keep track of all trades using price charts rather than candlesticks charts because candlesticks tend
“No one looks at charts like I do” – Wrong!
Your ability to predict the future is limited. No one looks at charts like I do, and the average person cannot accurately make a prediction based on their own judgement. If you don’t trust your own judgement, who will? You should trust the charts and market experts.
“I don’t need to go to the trading floor today, I’ll just look at my screen.” – Wrong!
You are going to be spending a lot of time at the trading floor, so it’s important to prepare for the inevitable. The best way is by doing some research and finding out what kind of environment you prefer.
A good place to start is reading other traders’ stories and seeing how they made their money or lost it in their first year on the job. Also ask them about their favorite books, movies, sports teams etc., because these may help explain certain things about themselves that you might find interesting too!
“I’ll just take a larger position than usual today and make a killing” (or a losing trade) – Wrong!
The first step to becoming a successful forex trader is learning to control your emotions. Here are some tips:
Be disciplined and stick to your trading plan. Don’t deviate from it at all if you can help it!
Realize that the market will never be 100% predictable, so don’t expect that every trade will be a “win” (or vice versa). If an asset moves in one direction for more than 20 minutes before reversing, then it’s likely going nowhere for long enough for us to make money off of that move – even if we did something wrong beforehand by taking a big position or entering with low risk tolerance levels set too high…this happens all the time! So please don’t use hindsight bias as an excuse when things don’t go according to plan because this is not helping anyone but yourself – unless there was some other reason why things didn’t work out like planned (like lag times between trades) then maybe try again later after double checking everything first?
To really succeed, you must control your emotions when forex trading.
If you want to be a successful forex trader, it’s essential that you control your emotions. The main emotions that affect traders are greed and fear.
Greed: This emotion can lead to unreasonable risk-taking and poor decision-making when trading on the market. Greed is also the reason most traders lose money in the long run because they don’t make enough money from their trades compared with losing more than what they make from them. In order for us humans to survive, we need food; however, some people become too greedy after eating their fill at dinner time (or whatever meal). They will eat until they get sick or start feeling nauseous due to overeating too much food at once! This might not seem like a big deal but if we consider how many calories there are per pound of body weight then this could potentially lead up into millions of dollars lost over time due only because someone decided not having enough self control when eating something delicious like cake batter ice cream sundaes…
So, to succeed in forex trading, you must control your emotions. You need to be able to keep yourself in check and make sure that you’re not letting your emotions interfere with your ability to trade forex successfully. If you can do this, then congratulations! This is what it takes for any trader who wants success in the market.