Controlling emotions that hold you back

freeforex20

Active member
Controlling emotions that hold you back


free forex signals
presents special offer

open trading account with one of the best forex brokers and GET FREE forex Signals via SMS, Email and WhatsApp

SIGN UP FOR A FREE TRIAL To Access FREE Forex Signals in the Members Area START FREE 30 DAYS TRIAL on https://www.freeforex-signals.com/



So far, we've explored many different aspects of the financial markets and the techniques of trading. But there's one key component that affects the success of every trade you make, and that's you.



No matter how strong or level-headed you can be, you are a human being, so you have emotions. And naturally your feelings can influence your thinking and your behaviour as a trader.



Controlling emotions

Trading is an exciting and absorbing activity that can bring you moments of euphoria when things are going well, while equally it can be psychologically tough if markets turn against you. By understanding the emotions you're likely to experience at every point in the trading process, you can mentally prepare yourself to handle them effectively. That way, your feelings won't get in the way of your decision-making or harm your potential profits.



In this course, we'll look at some of the emotions you may need to deal with when you trade.



Anxiety and doubt

It's great to be cautious and considered in your trading, but if your worries are crippling you that's counter-productive.



The transition to a live trading account after using 'play' money in a demo environment is one step that worries some traders. It's a bit like doing a parachute jump: you've learned the theory and done all the preparation, but making that leap still takes courage.



Live and demo

There are, however, things you can do to make it a little less daunting:



Reflect on the lessons you learned while using the demo account

Apply the same strategies that brought you success in demo trades

Follow a trading plan

Start by trading in small sizes until you feel comfortable

Use risk-management tools, such as stop-losses

As long as you trade sensibly, use the skills and knowledge you've already gained and keep your positions modest, there's every reason to expect success. Of course you will make mistakes - we all do - but by managing risk carefully you'll minimise your losses.



Fear of loss

Another time that you might experience fear is when a position is moving against you and you begin to see a growing loss.



Example

Imagine you've bought EUR/USD because your analysis strongly suggests it's about to rise. You've considered the risk involved and set a stop-loss.

However, as time passes the currency pair seems to be stuck in a downtrend. It hasn't hit your stop, but the rise you predicted remains elusive. You start to feel nervous: should you close the position now and cut your losses? Should you adjust your stop closer?

Before taking any action, ask yourself:

Was my original analysis flawed?

Have circumstances affecting this market changed since I opened my trade?

Did I place my stop at the wrong level?

If everything suggests your original analysis is still valid, and if you've positioned your stop correctly to protect yourself against unacceptable loss, there's no reason to alter or kill your trade. Have confidence in your original judgment and let things play out - your loss could turn into a profit.

summary

Your emotional state can have a strong influence on the bottom line of your trading, so it's important to learn how to manage your feelings

Don't allow doubts and fears to paralyse you. Markets move swiftly, and hesitation can lead to missed opportunities

By following a plan, trading in small sizes and using risk management tools, you'll feel more secure and confident in your trading decisions
 
As a human being, emotion is a part and parcel of our life. Controlling emotion is a tough job. But in forex trading, as a trader you have to control your emotions. Emotion can cause the loss in trading. Taking decision emotionally can not be suitable for you. You need to be practical. You should know when to trade, what to trade and how to trade. I am trading with TP Global FX. They always help me to control my emotions. They suggest me about the trading policy. So, it is quite easy for me to control my emotions while I am trading with them.
 
It is difficult to survive in the market for the new traders. They always be in fear of losses. If they face losses, they quit the market. As a new trader, he should know that loss is the common factor of forex trading. If a new trader can get proper education about forex, he will never leave the market. Because he knows that if he tries well he can easily recover from that losses. A broker can help a new trader to recover and reduce the losses. I am always trading with Tpglobalfx because of their support and easy trading technic which can help me to reduce my losses and make profit.
 
Ahh, I know this. For a long time I did not want to engage in trading because I can not control my emotions and I often get excited. This is very bad for trading and because of this I have lost more than 5000 bucks, despite the fact that I am well versed in trading. As a result, I decided to take medications in order to solve the anxiety problem and calm my nervous system. I found the best Kratom rank vendors and ordered a batch of kratom and the effect was just amazing. So if you have problems with the nervous system or self-control, I recommend that you try Kratom.
 
Last edited:
Back
Top Bottom