Profitable psychological aspects of Forex trading.
Is psychology the main aspect in the success of forex trading? There is an assumption that says that psychological aspects are not functioning, which determines success in forex trading is a trading signal. While others say that the psychological aspects function 80% to 90%. But from surveys that have been done, psychology in forex trading greatly determines the success of a forex trader.
Often forex traders who have not been loyal to the trading rules they make themselves. For example greedy properties that can cause forex trading results are not as expected. Or the nature of excessive self-confidence (over confidence) and impatience. All of that is due to forex traders caring less about the psychology of forex trading. In fact, psychological aspects really determine success in forex trading.
If we pay attention in terms of psychology, the trader is divided into 4 levels:
1. First level:
Forex traders who do not care about the importance of psychology in trading, they only concentrate on technical analysis. Such forex traders fully believe that only technical aspects will bring success in trading. They believe that if they are not successful or suffer losses, there is something wrong in how to research.
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2. Second level:
Forex traders who begin to be aware of other aspects that affect the way of trading so the results are not as expected. The forex trader has been good at reading charts and researching the market, but still has not received consistent results. He began to find out by reading various things in trading and hearing from other forex traders. In the end he will get an answer that his mind will be meaningful to the performance of forex trading. And certainly not always able to be controlled consciously. He also began to realize that market movements tended to be erratic and in order to be able to trade forex properly needed the right way of thinking and discipline.
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3. Third level:
Forex traders are beginning to try to eliminate the interference that comes from within. He began to try to manage the behavior in forex trading by trying to follow the forex trading plan in accordance with the standards that have been made. At this level forex traders begin to gain enlightenment about the importance of the psychological aspects, and begin to adjust by acting according to what they think. He tried not to be too confident when he made a profit or was too disappointed when he suffered a loss. As well as patiently waiting for a valid forex signal to come, and get rid of signals that are likely to be low.
Transitions from the second level to the third level require a process and time that depends on the willingness and perseverance of the trader. The attitude of forex traders who have reached this level will appear in their daily lives. That is more disciplined and more able to control himself. He is not quick to react and will try to be patient in anticipating the situation.
4. The fourth level:
Forex traders begin to understand the importance of psychological aspects in trading. He realized that it was not easy to be able to apply beneficial psychological aspects of trading. But if he is ready and can go through the transition period, it is not difficult to realize. Forex traders at this level will appear in their trading habits that have changed from before.
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In terms of the application of profitable forex trading psychology, you must pass the levels above, especially the third and fourth levels. By always learning and practicing, you will be able to trade without emotion, discipline and patience.
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