Trading Psychology for forex Beginners

[arbelabaker]

To every forex Beginners, if you want to become a success trader, if you want to earn stable profit on forex market, you should not only learn how to use those indicators; how to do fundamental analysis, but also learn how to control your emotion.

It is said that the reason that most traders lose is because they are not psychologically prepared to trade, that is they are not prepared to accept financial risk for something of which they have no control over the outcome. Trading is much more of a psychological problem then a methodological one, only the traders who have first accepted this have a chance of being consistently successful traders. Without an understanding of trading psychology and the various issues that circumvent method, there will be virtually no chance to overcome the fear, confusion, and despair that can be inherent in trading. Ultimately, after a series of consecutive losses, method becomes replaced with a feeling that it is impossible to do anything right; if for no other reason than this situation, trading psychology is more critical than trading method.

Through internet, you can find many articles about trading psychology, about how to practice to control your emotion. Many forex brokers also provide trading psychology material to help new traders grow up. But many of them just focus on one aspect of trading psychology, very few articles and material systemically express what is trading psychology and how to control your feeling.

Several days ago, I accidental found a mini-book about this subject on site of micro forex broker Profiforex. This book systemically introduces trading psychology and teaches you useful method to control your emotions. It is very good for Beginners. Unfortunately, I cannot copy all the information to this post, so I recommend you to visit their site and study the related material. You can follow this link to learn more about Trading Psychology: profiforex.com/pages/Learning/Psy
Also this site Trading Psychology Management also has many good articles about this topic. tradingpsychology1.com

Wish you success!

[givemepips]

Thank you, I know from time to time reading posts, some traders will get confused about which direction price is heading. Its best to focus while trading, and disregard bulls and bears comments. Just stick with your trading method. Respect your stoploss and love your gains. Give no attention to loss, only give attention to your winning trades. Always, demo your method until comfortable.

[1only]

I am not a new trader any more but I am still working on being disciplined all the time. Yes, psychology and discipline are the most important aspests in trading. But new traders always look for systems which are working most of time. Only disciplined traders can make money. Work on it and enjoy your trading journal.

[arbelabaker]

Yes, I agree with above posts. Every trader should build his own trading method or trading system. And better to practise or to test your methods on Demo account, when you gain more experiance and confidence of this method, then you can put it on real trading account to gain profit. Remember, when you go to real trading account, you should respect your trading method, dont let the loss deals change your trading manners. In My first post, i've listed the address of psychological material. You can read them to help you overcome your negative mood.

Good luck!

[jmerk9]

Thank you for your post and materials as I'm still a little too hesitant to take the plunge to real trading. I have been trading pretty agressively in my demo account, but I won't have the funds to be able to do that in live trading. I suppose I should scale back to trade in the demo with the same amount I will have in the live platform to see the difference. Thanks for the materials as I always appreciate your input.

To every forex Beginners, if you want to become a success trader, if you want to earn stable profit on forex market, you should not only learn how to use those indicators; how to do fundamental analysis, but also learn how to control your emotion.

It is said that the reason that most traders lose is because they are not psychologically prepared to trade, that is they are not prepared to accept financial risk for something of which they have no control over the outcome. Trading is much more of a psychological problem then a methodological one, only the traders who have first accepted this have a chance of being consistently successful traders. Without an understanding of trading psychology and the various issues that circumvent method, there will be virtually no chance to overcome the fear, confusion, and despair that can be inherent in trading. Ultimately, after a series of consecutive losses, method becomes replaced with a feeling that it is impossible to do anything right; if for no other reason than this situation, trading psychology is more critical than trading method.

Through internet, you can find many articles about trading psychology, about how to practice to control your emotion. Many forex brokers also provide trading psychology material to help new traders grow up. But many of them just focus on one aspect of trading psychology, very few articles and material systemically express what is trading psychology and how to control your feeling.

Several days ago, I accidental found a mini-book about this subject on site of micro forex broker Profiforex. This book systemically introduces trading psychology and teaches you useful method to control your emotions. It is very good for Beginners. Unfortunately, I cannot copy all the information to this post, so I recommend you to visit their site and study the related material. You can follow this link to learn more about Trading Psychology: profiforex.com/pages/Learning/Psy
Also this site Trading Psychology Management also has many good articles about this topic. tradingpsychology1.com

Wish you success!

[Jack_Larkin]

I've actually put together a site on Trading Psychology and Professionalism

It's written for existing traders who are looking to help increase performance or traders who need that extra push to break the threshold of consistency.

http://fxgears.com

[taohai]

The problem is the many newbie don't believe this and think they are different. the truth is only those different people who can control them can win in this market.

[Bruce19]

Rules, rules, rules. I never much cared for rules until I got into trading. I've learned over the past couple years as I'm becoming more and more experienced, that you MUST follow your rules. Set your stops and follow them. As mentioned above, don't let your losses bother you. They will happen. If you let them bother you, you will never be successful. But by following your systematic rules you can reduce your risks and see many gains. Do your research, trade demo until you are ready, follow your rules and everything will work out. Mostly don't let your emotions into your trading strategy.

[DickP]

Rules, rules, rules. I never much cared for rules until I got into trading. I've learned over the past couple years as I'm becoming more and more experienced, that you MUST follow your rules. Set your stops and follow them. As mentioned above, don't let your losses bother you. They will happen. If you let them bother you, you will never be successful. But by following your systematic rules you can reduce your risks and see many gains. Do your research, trade demo until you are ready, follow your rules and everything will work out. Mostly don't let your emotions into your trading strategy.

Right on... if you don't have rules while trading you're gambling... period!

[yogibear]

Rules, rules, rules. I never much cared for rules until I got into trading. I've learned over the past couple years as I'm becoming more and more experienced, that you MUST follow your rules. Set your stops and follow them. As mentioned above, don't let your losses bother you. They will happen. If you let them bother you, you will never be successful. But by following your systematic rules you can reduce your risks and see many gains. Do your research, trade demo until you are ready, follow your rules and everything will work out. Mostly don't let your emotions into your trading strategy.

The OP lost me in the first couple of lines, regarding indicators and fundamental analysis.
But your post is very good, imho.The other thing, is while you have to have rules, i think you'll find as you gain more experience, these rules will need tweaking.

[Grekko]

Wish i would have seen this a year or so ago;

[Rarahame]

Wish i would have seen this a year or so ago;

Hi Grekko,

Traders’ psychology is not too late for you. It will help you on forex trading in future. And traders’ psychology is not a easy lesson for any trader. It doesn’t mean when you know these principle you won’t make mistakes. So continual studying and more experiences are need for any trader.

Wish you good luck.

[noynoy]

we all make mistakes and learn from them or about them in a later time, the good thing about learning its never too late we all had our dark pasts in forex trading

[Dominator4fx]

we all make mistakes and learn from them or about them in a later time, the good thing about learning its never too late we all had our dark pasts in forex trading

Making mistakes is a normal thing and we must then see and learn from them so that we do not repeat the same set of mistakes again and again

[hunting leopard]

Making mistakes is a normal thing and we must then see and learn from them so that we do not repeat the same set of mistakes again and again

beginners shouldn't afraid of mistakes or failures. they should do conclusions

[henryduncan12]

Thanks to share "Trading Psychology for forex Beginners". Some points are good and helpful for new traders as well. For new traders understanding trading psychology has become very necessary to make money in forex.

[reynuevo]

Thanks for this very informative post..

[ahmedhassan]

so interesting and useful thanks for sharing, the thing is to be always positive and have a clear mind of all daily life troubles !