Jul 112013
 

[simple_series title=”Forex Beginners”]

Where there is money there is emotions. Normally your emotions can work for forex trading. But you have to give up emotions to catch success.

As a realm of gambler big and successful traders also suffer from emotion. But they technically avoid it and make successful trades. At first you have to know the different emotions of forex trading and then it will be possible for you to avoid these.

Emotions:

  • Overconfidence: Some traders feel overconfidence. Most of the times they focus on their personal opinion and even don’t observe the chart. That’s why they don’t feel for thinking before trading. As a result maximum time they lose profit.

Sometimes they spend a big amount for one trade. If they lose, they lose for a big amount. But it is possible to reduce risk by trading various small amounts.

Over confident persons are bearing high risk taking mentality. In case of forex trading, without considering the situation, taking high risk is nothing but foolish.

  • Lack of confidence: If you don’t have confidence, you have to suffer here. If you don’t have the metal power for taking risk, it won’t be easy to gain money. Actually you have to understand the reality and no need to feel fear.

  • Greed: Greed is a vital emotion for losing money. So you have to give up greed. This place is for money. But if you become greedy, you will take wrong decision and lose capital.

Ways to control Emotions:Actually this is not easy to avoid emotions. But if you follow the following tasks, hope you will set up control on emotions for forex trading.

  • Follow up: You have to observe the market situation and follow-up the latest news for a long time. Try to understand and point out the secret of it. To do so you can open a demo account. Learn the technical terms and find out the tricks. Observe the successful traders. Then you can think for buying.

  • Make a research: Make a personal research of forex. By the passing of time with forex you will gather important information and then try to explain the incidents personally. It will increase your reality knowledge and will help to avoid emotions.

  • Comparison ROI: Before making a trade you can compare probable ROI (Return on Investment) with possibility of Risk. It will help you to take decision logically.

  • Small trade: You can divide your amount into a lot of small trades. So your risk won’t be confined to a one trade and profit probability will increase into various trades.

  • Los risk: You can select low risk pairs. But you have to do it confidently, without having any hesitation.

  • Long term plan: You have to make a master plan and some small and flexible plan. If you do according to your plan, no emotions will affect your trade.

  • Goal oriented: You have to be planned and goal oriented. So you need to stick to your plan until success. And it will remove your instant emotions.

Forex trading is like gambling. So, sharp thinking and instant intelligence has to apply here to gain success. And that’s why you have to avoid emotion. But following above rules you can give up your emotions and get success.

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