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Trading Psychology

Trade with rational logic but not with emotion

As Forex traders, you should control the emotions to trade the market, the logical thinking is important for the Forex trading.  The human nature is to become emotional but they never think logically. So in order to make profit consistently by trading the financial assets make sure to follow rational logic behind every single trade. The reason we are saying to trade what you see but not what you think is that you use logical attempts in trading when you see the market. We will mention few insights and tips to understand the ways to trade what you see but not what you think.

Stop trying to be too smart

In the Forex market guessing will not help, if you are in the Forex market you should have the rational trade setup and the real commitment. If you are not trading the market with the techniques and strategies then it will be as if rotating a roulette wheel. The naïve and the intermediate traders make this mistake in the Forex market; they usually trade with the emotion which is not at all ideal for the market. The traders try to become too smart by thinking what the price should do rather than analyzing the charts and the price movements. If you are trading with the predetermined strategies without seeing the obvious price action setup then you are trading with the emotions. Using the pre-determined strategy even in the changing market is called “being too smart”.

Don’t focus on a single trade

As a professional trader you should never focus on a single trade in the market since you don’t know the possible out from that trade. Even if you analyze and find a ‘perfect’ trade setup don’t rely on it because the Forex market is constantly changing and flowing arena, so the tendency for the market to change anytime is very high. If you spot good trades even do not get too attached to it because nothing is permanent in the Forex market. You should learn to be emotionally detached from the trades that you execute.

Develop self-control

The obvious fact is that the Forex market does not care whether you win or lose, whether you exit or enter. It’s just a market so the traders should not let the market control them. You should control yourself and should learn to control the market.

Summary: The natural thrive to make a huge profit from a single trade is not the good way to trade the market, the greed to earn more will cut you down from the root. Anyways, you should not trade the Forex market emotionally and also you should understand the ways to implement it. There are many ways to be in your limit, just because you won many trades does not mean that you are going to win all the upcoming trades. In the Forex market, everything change so as traders you should also change accordingly.

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