Emotion in Forex trading

LikeMustard posted:
I'm not sure about all this psychology talk. Surely if you have a good trading strategy, good money management and you stick to your rules of trading there shouldn't be a problem with emtions

Mate, following the own trading plan with honesty is important; most of the time initial trading plan breaks the proper game plan & makes trader greedy.

Emotional conditons are differend for each of us. Some people can stay calm and trade in red, some people like me, worry about each fail. The really important thing is to accept the fact about your personality and note if you need to train yourself or not.

pipsKeeper posted:
Emotional conditons are differend for each of us. Some people can stay calm and trade in red, some people like me, worry about each fail. The really important thing is to accept the fact about your personality and note if you need to train yourself or not.

Right! We traders need to understand our own strength & weakness at first! Besides, having a good trading skill is very much important here.

Emotion is mainly considered the foremost reason for losing in Forex trading. So it would be great if we practice our trading devoid of this nature. Even though it is impossible to remove completely from our trading but we have control our emotion to keep survive in this volatile trading place for a long time with making profit successfully.

Knowing our strength and weakness is important. I know for me I am good at identify chart patterns but I over trade so reduced number of trades I can take per day. It really help me

Jingyi posted:
Knowing our strength and weakness is important. I know for me I am good at identify chart patterns but I over trade so reduced number of trades I can take per day. It really help me

Well said! Yes, we have to understand our strong and weak areas for sure! In addition, analyzing on live trading mistake is a good practice.

I find emotion with revenge trading is worst problem I have. If I get three losers in a row then a downward spiral can develop. Need to stop that somehow

PinguPeter posted:
I find emotion with revenge trading is worst problem I have. If I get three losers in a row then a downward spiral can develop. Need to stop that somehow

Revenge trading is very much common issue; I was with the same problem when I was a newbie.

I've been there, I've done that, sometimes I still do that. Getting out of that spiral is almost impossible once it starts.

eabrams posted:
I've been there, I've done that, sometimes I still do that. Getting out of that spiral is almost impossible once it starts.

Got it mate, almost we all same similar experience but the good thing is; now we have improve a lot.

Adribaasmet posted:

eabrams posted:
I've been there, I've done that, sometimes I still do that. Getting out of that spiral is almost impossible once it starts.

Got it mate, almost we all same similar experience but the good thing is; now we have improve a lot.

I think most traders who don't have any economic education background have similar experiences. In a way that is something to bond over.

Do you think that you need an economic background to make it in Forex?

PinUpGal posted:
Do you think that you need an economic background to make it in Forex?

There is no problem without economic background. I have seen, so many pro traders who had nothing background in trading industry.

Its not something that is a must have but it sure does help, especially for longer trades.

'Good' emotions (joy, happiness, excitement, etc...) will give a people a false sense of superiority when it comes to their trading and causes people to over trade with the expectation they are going to 'win big' or some other such nonsense.

'Bad' emotions (anger, depression, despair, etc...) will give people a 'fight or flight' kind of response that happens when a trader makes a really bad trade.

This causes people to over trade and make bad trading decisions such as trying to trade themselves out of a bad situation on their account with massive lot/unit sizes and such, which when the trade goes bad, will cause traders panic and blow out their account because are ignoring the basic rules of successful trading.

Emotions should NEVER be allowed to have any impact whatsoever in trading the markets.

snapdragon1970 posted:
Its not something that is a must have but it sure does help, especially for longer trades.

NO.

If a trade is profitable either close it out and take the profit, or move your stop loss up to lock in your profits and let the trade run it's course until it hits your take profit target.

If you have a longer running trade and you see it is profitable, how is being emotional about it going to help the trade?

It isn't going to help at all.
Emotions have no place in trading.

PinUpGal posted:
Do you think that you need an economic background to make it in Forex?

Short answer: NO

I have been trading a while and met a pro trader (for a bank) the other day. It wasn't a pleasant experience. He knew so much about markets, economics etc and it made me feel pretty small and ignorant. He seemed to think that without years of knowledge of economics and a team of people analysing the fundamentals it is impossible to make money trading. He thought that all day traders were just gamblers.

Professional4X posted:

PinUpGal posted:
Do you think that you need an economic background to make it in Forex?

Short answer: NO

Same from me! Basically, having economic background is not common case, it’s rare!