Emotion in Forex trading

Emotions are always in the market ,your living in the dark ages if you think otherwise ,Algos are reading sentiment on twitter,facebook yahoo finance etc etc etc ....remember the algo that canceled orders on fake news about the white house blowing up ,use fear and greed to your advantage.

snapdragon1970 posted:
Emotions are always in the market ,your living in the dark ages if you think otherwise ,Algos are reading sentiment on twitter,facebook yahoo finance etc etc etc ....remember the algo that canceled orders on fake news about the white house blowing up ,use fear and greed to your advantage.

Depending on others prediction is not a good choice! This is why, I avoid social medias to collect Forex news! Since, it makes me confused.

AmDiab posted:

snapdragon1970 posted:
Emotions are always in the market ,your living in the dark ages if you think otherwise ,Algos are reading sentiment on twitter,facebook yahoo finance etc etc etc ....remember the algo that canceled orders on fake news about the white house blowing up ,use fear and greed to your advantage.

Depending on others prediction is not a good choice! This is why, I avoid social medias to collect Forex news! Since, it makes me confused.

If everyone and there dog is shorting Eur/Usd what are you gonna do follow the heard ,that's why its good to read the forums ,yes its confusing but helps to gauge bias of retail.

Spending time on Forex forums is not a bad practice! But, we should be careful about the spammers.

There are a lot of people trying to claim that they have great results and lure people into their 'fund' etc. if anyone asks for a direct message or email then just stay away

nasrul_poyo posted:
Once TP, sure you are happy. When current trade in blue color, still can smile but if it turns red, most of us trying to look at chart and think why its not perfect entry and looking new improvement 😂

When the position go red, the only chance to keep calm is stand a SL and stand away from PC and charts.

FuYating posted:
There are a lot of people trying to claim that they have great results and lure people into their 'fund' etc. if anyone asks for a direct message or email then just stay away

That’s the best practice; even I got so many massages from different forum members! Even they are claiming about 100% profit ratio; lol.

Let's make 2 questions:
Question one
A) you have 100% of chance to lose 30 USD
B) you have 80% of chance to lose 40 USD, and 10% of chance to lose nothing

92% of answers say option B.

Question two

A) 100 percent chance of receiving $30 USD
B) 90 percent chance of receiving $40 USD, and a 10 percent
chance of receiving nothing.
80% of answers say option A.

These question were part of a study carried by Daniel Kahneman and Amos Tversky, about market behavior, in 1979.

Successful traders answers: A and B.
Why? Because they play with probabilities. In the long term, for example:
Question one
A) loose 30 USD.
B) loose 90% x 40 USD = 36 USD.

Question two
A) Win 30 USD.
B) Win 90% x 40 USD = 36 USD.

These answers show how real traders think! They accept their losses earlier, respecting their stop losses, and maximize their profit, keeping their TP.

Arcferreira posted:
Let's make 2 questions:
Question one
A) you have 100% of chance to lose 30 USD
B) you have 80% of chance to lose 40 USD, and 10% of chance to lose nothing

92% of answers say option B.

Question two

A) 100 percent chance of receiving $30 USD
B) 90 percent chance of receiving $40 USD, and a 10 percent
chance of receiving nothing.
80% of answers say option A.

These question were part of a study carried by Daniel Kahneman and Amos Tversky, about market behavior, in 1979.

Successful traders answers: A and B.
Why? Because they play with probabilities. In the long term, for example:
Question one
A) loose 30 USD.
B) loose 90% x 40 USD = 36 USD.

Question two
A) Win 30 USD.
B) Win 90% x 40 USD = 36 USD.

These answers show how real traders think! They accept their losses earlier, respecting their stop losses, and maximize their profit, keeping their TP.

Brilliant. One of the best answer I read here. The psychology of traders who is able to earn is completely different from common traders. That is why 95% of traders cannot to trade profitable.

Hello Allan; I also liked your comparison; well done! Thanks for your detail answer! Actually, that’s the real scenario & this is why, Forex is called smartest way of money earning.

There must be no emotion for one to succeed in Fx, make a decision when required.

Trader4hire posted:
There must be no emotion for one to succeed in Fx, make a decision when required.

Of course, it is! But, it takes such a long time to learn & make a professional mind set! I see, almost all of pro traders focus on their trading process instead of result.

AniLorak posted:

Trader4hire posted:
There must be no emotion for one to succeed in Fx, make a decision when required.

Of course, it is! But, it takes such a long time to learn & make a professional mind set! I see, almost all of pro traders focus on their trading process instead of result.

In my place of trading with the banks, no selected traders have emotions, funny enough, i was picked up from here around 2007, emotion its one thing you must put in the bin if you want to succeed, especially when you are working under big organizations

a good way to clear emotions is to have a low risk money management

nick3232 posted:
a good way to clear emotions is to have a low risk money management

Of course, it is; low risk reward ratio is very much important! Because there is guarantee; during your tough time low-risk reward ratio will help you a lot for sure.

nick3232 posted:
a good way to clear emotions is to have a low risk money management

You can still have that and still full of emotions, Best way is exit when its time to exit and be stingy with your profits

just trade with funds you can afford to lose.

I have not much experience, which is less than 2 years, I don't touch other people monies and I trade with money which I can afford to lose.

Good discussion.......
Try not to risk more than 3% on single trade

RosdiXM posted:
Good discussion.......
Try not to risk more than 3% on single trade

Even, I think sometimes 3% is aggressive; such as if you face consistent 3 SLs; that means almost 10% of your trading account.