It is said that the psychological challenge constitutes 90% of the conflict in achieving continued success as a trader in Forex. Could this be true?
Yes and no. Many of the big traders who wrote about their experiences talked about how their internal psychological problems caused them losses, even when they knew that what they were doing was wrong. There can be no doubt that psychological factors are of great importance in the world of trading in Forex or speculating on anything.
Psychological trading professionalism will not bring you money in itself, but if you are not familiar with the methods that your mind tries to do on its own,Some Common Psychological Errors
1/Do not trust your approach
It is surprising how many people are trading without the conviction that they can make money, or at least ensure that they have a good chance of doing so. Even if you believe in what you are doing, are you sure you do not have big hidden doubts? The answer to this problem is the methodology test. For example, if you're patterned, take some time to retroactively test a lot of old data. Do you give good results most of the time? Is it based on a fixed principle, such as reflections of the medium or momentum? If the answer to these questions is yes, believe in what you do and do not forget it.
2/Give up the loss early
It is like burning to collect profits. You may have to rethink your risk management strategy.
3/*Do not be responsible for trading
Very easy to put excuses. If I do not miss the bus, if I do not finish, or if I am not in a bad mood, I would deal with it better and profit instead of losing. Your job is to make sure you do not miss the bus or that you end up or be in a bad mood. When you are responsible for all your trades, then your mood can improve when you see that there is a way for you to make things better. This is a marathon journey and not a foe.
4/*Fear or excessive enthusiasm for trading
These are two sides to one problem. The best way to avoid this is to tell yourself every day that you are willing to do several trades or not at all, and that what you do will depend entirely on the market situation rather than on your wallet or mood. There will be days that do not contain movement and days that contain a lot of movement. You have to adapt to the circumstances.
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