How to control emotion while trading? You Should Know.

Forex Forum, Best emotion control tips while you trading.​

How to control emotion in forex trading

Our emotions have a significant impact on the decisions we make. Trading is all about making decisions of what to buy, what to sell and what to hold. Most traders have a hard time controlling their emotions. Many of them have even blown up their trading account because of lack of control on emotions.

In this article we will discuss about how to control emotions while trading. Also, we will mention the exact actions to take when you think you are unable to control your emotions.

What is emotional trading?​

Emotional trading is when a trader or investor lets personal feelings and emotions impact their decision-making. Sometimes it can be helpful, but usually bringing emotion into trading is a bad idea.


Trading Psychology is considered to impact and affect up to 95% of overall trading success. When we think about trading in terms of psychology, this is knowing when to enter a position and when to not enter a volatile market and leave the market alone.

A trader is their own worst enemy when it comes to Forex and it is their responsibility to come to terms with that. The trader is, after all, the chief decision-maker so it's up to the trader to introduce adequate measures to protect open positions. For learn more about forex trading psychology, you need to visit forex forum. Forex forum is one of the best places for learn proper about forex.

Here are some tips, how you can control your emotion in forex trading:​

1. Greed

The general definition of greed – excessive desire for more of something than is needed.

In forex trading expecting a higher return is the worst mistake you can ever do in your trading career. Greed prompts you to take trades continuously without realizing that the market will be open again tomorrow. So as a result of this trading behavior traders often ended up fall into overleveraging and overtrading. So, you have to avoid greed in forex trading.

2. Dealing with a losing position

No matter how diversified and well-tested a strategy is, there will always be times when it's sitting in the red. When losses start to grow, the emotions will distort our perspective on reality.

Cortisol is released by the brain – this is a stress hormone that interferes with thought, memory and rational decision making. This process is very subtle and happens below the level of conscious awareness.

3. Using stop orders

Stop orders are very unique tools that have been designed to help both the busy trader as well as the emotional trader. But its biggest advantage is that it helps you take control of your greed when trading, or more specifically removes greed from the equation completely.

Essentially what these orders do is help you set a specific price point of a financial instrument and register it on the software as a place to either buy or sell something automatically. For Learn more about stop-loss click here...

4. Remember the past

When the stock market dives, remember that this isn't the first time it's happened.

"The stock market has overcome so many obstacles," said Goldberg, pointing to 9/11, the Great Recession and the market crash of 1987.

"What happened each time? The stock market recovered and claimed new highs."
So, Remember the past when you will start trading. It's can help you to control your emotion in forex trading.


A trader must not catch a candle which is still open. An open candle provides misleading signals which will leave you in a mess. Do not let your emotions drive your decisions while trading. Many times, these misleading signals are the reason for losing trades.


A trader starts feeling like a loser after two consecutive losses. Since they don't want to lose, they start doing revenge trading. Similarly, a trader feels invincible after two consecutive wins. They think today they cannot lose at all and they start taking some fast and bad decisions without proper analysis. So, a trader should stop trading after two consecutive losses or wins to control their emotions.

7. Overconfidence

If you hit a rich vein of winning trades, as your strategy works favorably during the current market conditions, overconfidence can rear its head. This can have many negative side effects, but the main one to be aware of is over trading.

The importance of emotion control in forex trading


The importance of day trading emotional control cannot be overstated.

Imagine you've just taken a trade ahead of Non-Farm Payrolls (NFP) with the expectation that if the reported number is higher than forecasts, you will see the price of EUR/USD increase quickly, enabling you to make a hefty short-term profit.

NFP comes, and just as you had hoped, the number beats forecasts. But for some reason, price goes down!

You think back to all the analysis you had done, all the reasons that EUR/USD should be going up – and the more you think, the further price falls.

As you see the red stacking up on your losing position, emotions begin to take over – this is the 'Fight or Flight' instinct.This impulse can often prevent us from accomplishing our goals and, for traders, this issue can be very problematic, leading to knee-jerk reactions.

Professional traders don't want to take the chance that a rash decision will damage their account – they want to make sure that one knee-jerk reaction doesn't ruin their entire career. It can take a lot of practice, and many trades, to learn how to minimize emotional trading. Learn more about forex trading emotion control at

Instead, use time to research the factors that influence markets rather than relying on intuitions and guesswork. Or analyze your trading plan and see how it can be improved.

Even so accept that you can do all of the analysis in the world, and do everything possible but sometimes the market just won't go in the direction you expect it to. Accept that there are always circumstances that cannot be foreseen.

You can learn more about forex trading strategies and currency trading tips at

Thank You
Agree! Sometimes all you need to do is stroll in your garden and take a break. 😇 It’s a mind game. So, it is best to trade when your focus is at 100%

Trading need focus and concentration too, when in minds full emotion because problem in the crowd better take a break and not enforced to trading because will messed up trading plan and system trading.
Using leverage and spread wisely is needed to gain more profit on the market. I use moderate leverage because it keeps me free from risk. I have a very small capital so I don't dare to use high leverage.
To control emotions while trading, practice strict adherence to your trading plan and set predefined entry, exit, and stop-loss levels. Additionally, implement proper risk management techniques, and take breaks if you find yourself feeling overwhelmed or emotional during trading sessions.
Expertise cannot be achieved in a day and traders should grow this ability by trading on demo account as much as possible. Those who are trading experts have market chart knowledge and they can predict the market's movement by looting at the chart.
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Expertise cannot be achieved in a day and traders should grow this ability by trading on demo account as much as possible. Those who are trading experts have market chart knowledge and they can predict the market's movement by looting at the chart.
I couldn't agree more. Expertise takes time and practice. Demo trading is a valuable tool for honing skills and understanding market charts. Trading experts use their chart knowledge to make informed predictions. Keep learning and practicing
Most of us trading but have other incomes like job, so emotions play little role. All traders want to live from trading, but do you have a strategy which allow you to hold emotions, when you get 10 - 15 loss in a row, and you have to pay bills, buy food, take care of your family? This is real test your emotions.

I would say all new bees and armatures day dream about that because even the most stupid TRADER knows that trading is not a job as it doesn't provide a fixed income. please first make sure that your words make at least the smallest sense before sharing them for a community.
Emotions play a significant role in our everyday lives, and Forex trading is no exception. Many traders fall into the trap of making impulsive decisions based on their emotions rather than relying on sound analysis and strategy. This can lead to devastating outcomes.

When you let your emotions take control, you may find yourself chasing after losses or being overly cautious when it comes to taking successful trades. Fear and greed become the driving forces behind your decision-making process, clouding your judgment and leading to poor trade execution.

To avoid emotional trading, it's crucial to stay disciplined and adhere to a well-defined trading plan. Take the time to thoroughly analyse market conditions before entering any trade, rather than acting impulsively based on momentary fluctuations.

Additionally, implementing risk management techniques can help curb emotional responses. Setting stop-loss orders and profit targets will give you a clear exit strategy that takes emotions out of the equation.
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