Psychology of Forex Trading

LikeMustard posted:
Is trading psychology really that important? I place much greater importance to money management and strategy optimization

Of course, money management is important but you can’t ignore psychology at all. Success is a combo pack based on all these parameters.

I like that ' success is a combo pack'. I guess like anything you need to be skilled in a few areas to really be an expert

Beethoven9 posted:
I like that ' success is a combo pack'. I guess like anything you need to be skilled in a few areas to really be an expert

I agree. Successful trading is a result of experience, knowledge, discipline and patience all at once, rather than any of them individually.

Beethoven9 posted:
I like that ' success is a combo pack'. I guess like anything you need to be skilled in a few areas to really be an expert

Exactly, it’s a combo pack; only technical or fundamental or any technical tool is not enough here! That’s why, till now trading is so challenging profession.

Adribaasmet posted:

LikeMustard posted:
Is trading psychology really that important? I place much greater importance to money management and strategy optimization

Of course, money management is important but you can’t ignore psychology at all. Success is a combo pack based on all these parameters.

Very much true. Success in trading is composed of various interrelated factors including your money management skills, discipline, patience, persistence, hard work, analytical bent of mind, resilience etc

How can you integrate fundamental analysis in to your trading? I get technical but if GDP is growing but wage rate falling etc. how can I use that information to affect my trading decisions

You can use fundamentals to get the longer term trend. If the big important data like GDP and interest rates are strong and growing then I see that as an up trend. I then only look for Buys

Beethoven9 posted:
I like that ' success is a combo pack'. I guess like anything you need to be skilled in a few areas to really be an expert

Combo part is the key but I think you meant every areas. Combo of few areas skilled and major areas unskilled is not even a success. But skill in TA, FA, discipline, knowledge, experience, patience, all areas mentioned above are needed.

RichPort posted:
You can use fundamentals to get the longer term trend. If the big important data like GDP and interest rates are strong and growing then I see that as an up trend. I then only look for Buys

Yes, interest rate is very much crucial issue! It can change any trend of market within very short period of time & it’s much stable.

In the current economic climate it's also prudent to follow Brexit news, as well as the relationship between the USA and China.

It is possible to generate returns on psychological effects in Forex instruments with a right way of operating positions. Accumulation/Distribution is important for psychological trading.

How can one follow Brexit news?how often is the news?

CoolKimOne posted:
How can you integrate fundamental analysis in to your trading? I get technical but if GDP is growing but wage rate falling etc. how can I use that information to affect my trading decisions

Fundamentals as well as technical analyses needs to be included in trading plan.
To trade consistently. You can make a fortune on NFP as well as lose everything.

I find NFP is more like gambling. There can be big moves but the spread is usually so large that it is difficult to actually make any profit

For me, Forex trading business is the most decent way of money making! That’s way, I have already decided to use this money earning opportunity as my full time profession! Although, I struggled a lot because I started my trading without any teacher! Here, popular forums helped me a lot including this one!

FXMouthPiece posted:
I find NFP is more like gambling. There can be big moves but the spread is usually so large that it is difficult to actually make any profit

Yes, I also see a number of traders try to use misleading this trading event! But, good traders always try to manage new entry points according to their trading rules.

Imamul posted:
For me, Forex trading business is the most decent way of money making! That’s way, I have already decided to use this money earning opportunity as my full time profession! Although, I struggled a lot because I started my trading without any teacher! Here, popular forums helped me a lot including this one!

All the best for the future! hope you earn good. please keep us updated on the recent trends as you are going to do it fulll time.

Even though so many traders always emphasis on acquiring good trading knowledge but I don’t. Because, according to me despite of having most powerful analyzing trade knowledge that’s not possible at all to lead a healthy trading life with certainly, as a result the broker can affects the result of our trading with certainly. So when choosing a broker we have to be more careful.

I find that the Non-Farm Payrolls can be traded from time to time, but you should probably wait out the first few whipsaws before opening a position.