How to reduce the emotional obstacles for a profitable forex trading?
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Thread: How to reduce the emotional obstacles for a profitable forex trading?

  1. #1

    How to reduce the emotional obstacles for a profitable forex trading?

    Learn how to become a profitable market speculator is not so hard. Logic, rules and strategy - it's certainly not complicated science. Challenge comes when you actually try to execute consistently profitable strategy.

    The main reason for this challenge lies in the fact that we are all human beings with our inherent human emotions. From birth, we try to avoid things that scare us, and look forward to the things that allow us to feel comfortable. If you follow this natural course of action in the trade, then you will be in big trouble.

    Logically, the profitable trader buys when the price dropped, and only after the majority of market participants have already sold (red candles), at the level of price support (demand). Buy when everyone just sold - is not so comfortable action. When opening a short position you should find a situation where most participants have already bought - after a big rally in the market, but it challenges your emotional nature.
    Here we look at three easy steps for reducing the emotional obstacles to consistently profitable trading.

    Change the color of candles

    Most traders use the red and green candles, making the price chart is quite attractive to look at, but it may not always be the best option for trading. If you sell after the price rally and on an objective level of resistance (supply), which is a high-probability trading opportunities, then you are probably ready to sell immediately after a series of large green candle. However, to sell after a series of green candles may be not as comfortable, because it creates a strong illusion that the price is going to continue to move on up.

    There was conducted an experiment with the students, showing them a strong rally to a predetermined level of resistance, which suggests the possibility of trading with low risk and a high probability.

    The color of the candles was changed on the black, allowing them to remove some of the emotional tone during selling at the resistance level. In the setting of the green and red candles, the sale after a series of green candles has caused fear among new traders.

    Change the color of candles - it's not so absurd idea, if you are just starting to trade and too concentrate on the color of the candles. You should always remember: the color is not so much important as their location.

  2. #2
    To Set an order and forget

    The Simple task of clicking "buy" or "sell" may itself be an emotional challenge, because many traders are simply not able to overcome the fear of being wrong. Fortunately, with modern development of trading technology you do not need to press the button when you enter and exit trading positions.

    This possibility gives a great benefit, which may be used by new traders. Some people call it a trade on the principle of "set and forget". It is executed through the related orders.

    For example, the initial order can be set for a long position. By an order to buy a protective stop order to manage a risks and a limit order to fix profits are also can be attached. On market terms, this is called "tripartite order."

    Once you figure out where is the level of support (ask), level of your protective stop loss order and profit target, and decide you want to use this trading opportunity, you can use this tripartite order to really staying out of the deal.

    You can (and should) move away from your computer, and the transaction will be fully realized without your participation. This is - a unique way to reduce the emotional challenge of trading and to have more free time.

    Focusing on risk

    Two facts incidental to trading cause discomfort for most people. First, there is no certainty about the future results, and second, you will have losses. You have to realize that the best traders - those who know how to adjust the loss properly, keeping the size of the loss (not necessarily the frequency) at a minimum.

    For example, when the price is approaching the level of resistance for opening a short position, you may have different thoughts that determine whether you succeed as a trader or not.

    The idea of the novice trader is aligned with concern over the possible price going down, and the possible negative outcome, in case the trader is wrong. At the time, as consistently profitable trader is actually very calm, because he knows that the trading opportunity suggests a very low risk, as he opens position as close as possible to the protective stop order.

    Make sure that you always fit your position size to the level of risk at which you feel comfortable. And when it comes time to enter the market, rather than to watch the schedule and fear of potential losses, focus on how a low risk this trading opportunity involves.

  3. #3
    greedy and emotion is the greatest enemy of a trader, many traders fail and lose money when trading because of greed and poor emotional control. so every trader should be able to control myself not to be greedy and controlling emotions in each trade in order to be consistent, other than that every trader should have good knowledge in the field of forex money management is also good.

  4. #4
    Join Date
    Mar 2013
    we can reduce emotions obstacles for a profitable forex trading in many ways,like we should always do trade with low lot size and should not open too much trades at the same time until our first trades not completed and we should always trust on our trading strategy whether we get profit or loss from our trades..

  5. #5
    Traders knows it that emotions is the main reason why he cannot be successful in his trading, but the problem is he cannot follow the ways in controlling it, if we can emulate the character of a robot then we maybe able to trade without emotions involve but in realities most traders struggles in controlling their emotions, our success in handling our emotions depends solely to us....

  6. #6
    Join Date
    Aug 2013
    State Himachal Pradesh
    According to me we should have a great money management system in forex from which there will be less risky in the trade and we will able to make good profit from the market and we should choose always good point for buying and selling hope it will work for you

  7. #7
    I often do this, it can also change the chart settings to reduce our emotions when trading forex. when I'm stressed or emotional in forex trading, I often modify the chart view in order to look nice, so all the indicators that will be complicated and I just lose my forex trading only with an interesting graphic display only

  8. #8
    Registered user
    Join Date
    Mar 2013
    To ensure our success in Forex we should have good control over emotions. Its not emotional trading but logical trading that makes a trader successful in Forex. Emotions pulls a trader down and impairs his skills and knowledge. Thus we should have good emotional control to excel in Forex trading.

  9. #9
    Quote Originally Posted by mark48 View Post
    we can reduce emotions obstacles for a profitable forex trading in many ways,like we should always do trade with low lot size and should not open too much trades at the same time until our first trades not completed and we should always trust on our trading strategy whether we get profit or loss from our trades..
    But profits in Forex is not much available in order to underestimate the passion and I see that there are more solutions and from my point of view and is a frequent drag them in the account because the rolling clouds makes more confident in himself because he owns other property next to greatly reduce the proportion of risk

  10. #10
    Quote Originally Posted by mdmahabub View Post
    When I did not capable to make almost any revenue but. While I've got make a few revenue at times nevertheless I am can not retain that. I do believe it'll need extra times for taking revenue day-to-day. Simply nearly all consultant and also successful trader have the ability to carry revenue day-to-day.
    But how about if we got loss and not yet revenue?, when we start to lose i am sure we can find ourselves with emotions involved. It is impossible to avoid them but somehow possible to control them. It is hard work to control them at such condition , its need the high patience tough such condition is undesirable

    Besides patient we also need the trading plan, If we have a proper trading plan and we follow it up to the last detail then we don't have to think for revenge and not to feel tension . just follow our trading plan and don't entertain any emotions at all.

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