LucasRogers posted: For me trading psychology is a fundamental thing which must be complied by all trader regardless their experience in trading activity. I guess that psychology matters more than trading strategy, market conditions, news and stuff like that. The same happens in real life. When you wake up you should always set up your mood positively in order to spend your day with positive thoughts and good mood. As soon as you sit behind a table and open your laptop you should tell yourself 'everythings is clear, I'll handle any difficulties' or something like that. To my mind, this is trading psychology.
I disagree with you a little. Trading psychology, like the trading system and money management, must be a mechanism that works together, like an airplane cannot fly without wings or without an engine, even if it is made of the lightest material in the world.
A positive mood is definitely a big advantage during trading.
Can trading results spoil your mood at the end of the day if you are not happy with them?
I like your 'mood' idea, because you must be in a positive mood to take the trade in the first place! I also feel that even with psychology, 85% of your results is in the preparation - do everything exactly like you planned and prepared - there will be some mistakes, but it will not be your mistake, rather that of your system. So your heart rate will stay down!
I read that many people write that emotions can become the cause of losses. But it's not right. The cause of loss is the actions you take under the influence of emotions and also when you suppress them. Emotions should only be controlled, I saw there were different answers with advice on how to take control of yourself in a difficult moment.
For me trading psychology is the most significant thing in trading activity at all, because it affects your trading style and actually the whole trading day or week. In my opinion, it's very difficult for some traders to think about trading psychology and understand that their losses aren't their blame actually. It's just a mechanism of trading, when you lose, you have a great opportunity to find out why did you lose and how to prevent this in future. Also, psychology for me is the most important thing for my mood. I always say myself that if I lost, then trading wanted me to lose because it wanted to teach me something.
For me, trading psychology is an indicator which tells me that my trading strategy has a room for improvements. I aspire to the that situation, when I will not have to do with the emotions but with numbers. So, I really hope to eliminate this factor from my trading because I feel that it is next to impossible to remain cold-blooded all the time and have the nerves of steel.
Landakus posted: For me, trading psychology is an indicator which tells me that my trading strategy has a room for improvements. I aspire to the that situation, when I will not have to do with the emotions but with numbers. So, I really hope to eliminate this factor from my trading because I feel that it is next to impossible to remain cold-blooded all the time and have the nerves of steel.
Set psychology = personality; then certain personality types will never be able to be proficient in forex due too a lack of/ too much confidence and letting emotions get in the way of their trading. The way to get past any deficiencies in your own personality is to develop a system that you trust - then you eliminate any personal input (it is difficult but you have to!) follow your system 100%; only then can you really evaluate the performance of your system and eliminate psychology for the most part. My system is about 85% effective, but my win rate is just over 50% - why? Because 90% of the trades I lose is due to personal error! Trades I should never have taken but did on some stupid impulse - I'm slowly eliminating this and getting better every day. So psychology is in effect to learn to trust yourself(system) - what your brain has developed in an impersonal way.
Trading psychology is more a skill rather than knowledge. It is the skill of controlling your emotional side of trading and making decision. It is definetely not enough just to know how our emotions work but the skill to control them or avoid such situations when they are able to take over your mind.
Let's get back to the discussion. Over the past year, I have gained some additional experience and I can say that this experience was gained in a difficult market, when the world economy entered the turbulence zone.
My observation of other traders is so different, many are left or are losing money in a volatile market. But the most interesting thing is to observe those who successfully do their job. Such traders have very correct psychological rules and if someone has succeeded now, then kindly ask you to share. In the end, would say that the ability to work with political and economic news, to understand the psychology of the market and its reaction to events, is now coming to the fore.
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