How to reduce the emotional obstacles for a profitable forex trading?
Page 1 of 155 123451151101 ... LastLast
Results 1 to 10 of 1677

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

Hybrid View

Previous Post Previous Post   Next Post Next Post
  1. #1
    Super Moderator RoboForex Trader's Avatar
    Join Date
    Dec 2012
    Posts
    489
    Promo (¢)
    0
    Thumbs Up
    Received: 142
    Given: 33

    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.

    Not allowed!

  2. #2
    Super Moderator RoboForex Trader's Avatar
    Join Date
    Dec 2012
    Posts
    489
    Promo (¢)
    0
    Thumbs Up
    Received: 142
    Given: 33
    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.

    Not allowed!

  3. #3
    Registered user
    Join Date
    Aug 2013
    Posts
    222
    Promo (¢)
    790
    Thumbs Up
    Received: 2
    Given: 5
    Quote Originally Posted by RoboForex Trader View Post
    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.
    I interested in the "set and forget". I have been doubt to place an orders during the time when the signal is formed. I doubt the signal be a true or become false. But "set and forget" may help a lot to take any signal without any thinking. It will stop the doubt, as well as orders to be right at the desired price.

    Not allowed!

  4. #4
    Banned
    Join Date
    Oct 2013
    Posts
    11,332
    Promo (¢)
    0
    Thumbs Up
    Received: 243
    Given: 193
    focusing on risk. we need to pay attention for it, when we focus to the risk, we will learn how to manage our trading forex then we will always take the safest way for making profit, money management or risk management is a good reference to keep good our trading forex

    Not allowed!

  5. #5
    Registered user lawners1791's Avatar
    Join Date
    Dec 2013
    Location
    Lawners Makesup
    Posts
    12,228
    Promo (¢)
    120
    Thumbs Up
    Received: 79
    Given: 19
    Quote Originally Posted by newentry View Post
    focusing on risk. we need to pay attention for it, when we focus to the risk, we will learn how to manage our trading forex then we will always take the safest way for making profit, money management or risk management is a good reference to keep good our trading forex
    yes to work with the good manage to prepare better with the good improvesment with the system of the preferance. to alter more with the arangement of decision to avoid bigger risks of not to ruin more to keep to sustain the good trade.

    Not allowed!

  6. #6
    Rookie mohabbat's Avatar
    Join Date
    Jun 2013
    Location
    Trading acount
    Posts
    1,512
    Promo (¢)
    0
    Thumbs Up
    Received: 13
    Given: 12
    Quote Originally Posted by newentry View Post
    focusing on risk. we need to pay attention for it, when we focus to the risk, we will learn how to manage our trading forex then we will always take the safest way for making profit, money management or risk management is a good reference to keep good our trading forex
    yes dear you are right. I think risk managing not very hard for trader, but problem on our setting because we do not focus to our safety trading, so always we break our rules. but for profit making we need to attention of our trading and to our vision because it is our earning source, so...

    Not allowed!
    Don't loss you hope.

  7. #7
    Registered user
    Join Date
    Aug 2013
    Posts
    12,830
    Promo (¢)
    0
    Thumbs Up
    Received: 94
    Given: 1
    Quote Originally Posted by mohabbat View Post
    yes dear you are right. I think risk managing not very hard for trader, but problem on our setting because we do not focus to our safety trading, so always we break our rules. but for profit making we need to attention of our trading and to our vision because it is our earning source, so...
    Risk management is hard for traders but we still need a lot of knowledge in order to keep getting better. It is only like a limitation so that we won't loss too much money as for the risk management. But we can even get a lot of good profit as well outside from this because we just need a lot of experience combined with the knowledge. Not all risk management will work if we keep losing only.

    Not allowed!

  8. #8
    Registered user lawners1791's Avatar
    Join Date
    Dec 2013
    Location
    Lawners Makesup
    Posts
    12,228
    Promo (¢)
    120
    Thumbs Up
    Received: 79
    Given: 19
    Quote Originally Posted by RoboForex Trader View Post
    To Set an order and forget



    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.
    yes that is to prepare better with the good system and techicals with the entry with the work to call the use with the strategics with the number with the presettled arrange with the initials to left further and work more with the good customs with the monitoring if required,

    Not allowed!

  9. #9
    Registered user
    Join Date
    Feb 2013
    Posts
    6,171
    Promo (¢)
    160
    Thumbs Up
    Received: 124
    Given: 69
    Quote Originally Posted by RoboForex Trader View Post
    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.
    You are right about this, when i open position and then I focusing on risk, I get the trading so easily, I focus on how the price trigger the STOP LOSS, I use good money management, because in my thought the trading produce the loss result, nevertheless I'm using good trading setup to get good profit. but the result is the trading becoming profit. This reality that happen to me.

    Not allowed!

  10. #10
    Registered user lawners1791's Avatar
    Join Date
    Dec 2013
    Location
    Lawners Makesup
    Posts
    12,228
    Promo (¢)
    120
    Thumbs Up
    Received: 79
    Given: 19
    Quote Originally Posted by RoboForex Trader View Post
    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.
    yes to spends properly with the good follows with the strategics with the presettled rules with the trading plan. to keep with the spends of the focus to stay secure to moves with the good decision to complete the tasks of the request with the proper limit with the use of the risks level.

    Not allowed!

Page 1 of 155 123451151101 ... LastLast

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •