Psychology of Forex Trading - page 7

New comment
 
Tomas Sekeres:
Psychology is big issue. When you are trading via demo account you are able to earn a lots of money, but when you start with real money, its a problem :-) Why?

when beginner trader try demo emotionally he don't care if he lose his money and take high risk and when اjust open one trade with big position and the market move small amount of pips he makes high profit

as Demo accounts he can open with what ever amount he wants, if you see he is emotionally trading  

 
Mohammed Mounir:

when beginner trader try demo emotionally he don't care if he lose his money and take high risk and when اjust open one trade with big position and the market move small amount of pips he makes high profit

as Demo accounts he can open with what ever amount he wants, if you see he is emotionally trading  

In my opinion, the biggest advantage in using robots (EAs) is that they are not affected by emotions.

Of course, the "psychological issue" is not completely solved because, at the end, an EA keeps always under human control.

This aspect is closely related to what I said about profit trades percentage.

Psychologically, a human trader would never like to see any lost :-)

What frequently happens (mostly to inexperienced traders) is that he/she would soon change/adjust EA parameters, in an  "hysterical" way, as soon as a few losing trades came.

Unfortunately, our mental "time-scale" is too short to correctly evaluate if a strategy is going well or not. One should wait weeks or months before concluding something about

a strategy profitability.

Often, you see enthusiastic reviews of an EA, just after a few days of its usage, just because of a "fortuitous" series of winning trades...    

 
Mohammed Mounir:

when beginner trader try demo emotionally he don't care if he lose his money and take high risk and when اjust open one trade with big position and the market move small amount of pips he makes high profit

as Demo accounts he can open with what ever amount he wants, if you see he is emotionally trading  

Its very good to be in profit with some long term position. Than you have quite good psychological advance when you are trying some trading in low time frame.
 
Forex Psychology: if you fear while trading for sure you don't know what you doing and risk too much
 
Forex Psychology: Don't allow the feeling of fear to give you an indication to go in or out of trade
 
Forex Psychology: Don't jump into the market after the trade already taken off, Wait for a second chance entry
 
Forex Psychology: Don't be addicted to be in the market if there is no signal depends on your plan
 
Forex Psychology: Preserve your capital and don't loose it by risking too much
 
Forex Psychology: Don't jump into the market without trading plan
 
Forex Psychology: Learn how to perfect your entry into the market instead of loosing your money
123456789
New comment