What we think will affect the way we act. including in the forex trading world. Not just negative thoughts that will cause failure, but too much hope will also be fatal. You must try and think positively. The following thoughts should you avoid when trading forex.
Almost all traders are familiar with this type of emotion. Namely the desire to gain profit as much as possible in a very short time. Often the desired profit is not realistic by increasing risk or reward ratio. Greed is due to excessive confidence.
They are not aware that in forex trading cannot expect. A definite result of any trade we do because the market price movements are randomly distributed for more info please visit fxtrade777. Although you use a trading strategy with a high percentage of profit you can not ensure profit or loss.
The fear of market entry usually occurs after the trader loses consecutively. Within reasonable limits, the fear has a positive impact in trading. You will always use stop loss for fear of great loss, and you will also apply risk management by determining the size of lot trading in accordance with the loss that you dare to bear. Fear is basically a natural response in order for us to survive in the marketplace more info please click tradesprime
Excessive fear will make traders miss out on entry opportunities. When a valid trading signal has appeared. In this case, we must realize that in the random distribution of the last trading result has nothing to do with the trade result that we will do.
Excessive or unrealistic expectations in trading can be dangerous. Hope for always profit often deviates trader from the agreed trading plan. It will shift the stop loss when the price movement approaches that level, in the hope that the price movement will reverse, or move the target level (take profit) in the hope that the price will still move in accordance with its prediction. This type of emotion is the basis of greedy nature. If the trade turns into a profit, with the habit of expecting an excess he will tend to be greedy (greed).
Continual regret will crush the trading slowly. Retribution usually arises after the trader loses multiple entry times, wrong entry or after suffering substantial losses. If not quickly overcome, this type of emotion will be developed into fear in the market (fear), and in extreme cases can make it leave the world of trading. Once again the trader must realize that the last trading result has nothing to do with the trade result.
To prevent the emergence of these four types of emotions, we must always be aware of whether we are being seized by these emotions when trading.