Impulse Trading and How to Avoid It

There is no need to look for something complexity in something simple enough, you just need to be able to analyze and draw conclusions.

Kazile posted:
There is no need to look for something complexity in something simple enough, you just need to be able to analyze and draw conclusions.

When talking about complexity, I prefer fundamental analysis. Good and simple for someone like me who doesn't understand much about technical analysis, charts, and margin average.

Simply analyzing the economic, political, and social events that may or may not affect the currency prices of a country keeps me sorted to place my next trade. But yeah, without being modest, I do adopt a risk management strategy in case there’s a spike before the important changes.

Well weekly calendar suits me as of now. Filtering out the events depending on the expected market impact and then focusing on the currency pairs has helped me in demo trading.

Indeed, sometimes it is very difficult not to succumb to emotions, to make impulsive trading, and for this purpose create a trading plan.

I think if you learn not to give in to emotions, there will be no impulsive trading

if you learn that its impossible to control at 100% your emotions.
but yes if you train your head you can avoid for sure the impulsive trading

Cordawield posted:
I think if you learn not to give in to emotions, there will be no impulsive trading

I completely agree with you. In the forex market, Emotion is the main culprit.

Thanks for sharing your knowledge here. It is indeed very important for a trader to not let their emotions get in the way of trading.

Make a well defined trading plan and follow it patiently. Never do revenge trading, it will lead you to more losses.

That's right, you don't need to let your emotions control you and allow you to make mistakes.

Demo practice is the best solution in my opinion.

Find your mistake and learn from it.

I think it’s crucial to have a trading plan and stick to it. You might get lucky with one or two impulse trades, but it will likely lead to a blown account very quickly if that is the only method you’re using.

Enough knowledge and discipline is the key to avoid impulsive trading. To open a trade, you should have enough reasons behind it. If you can't find enough reasons, don't open trade.

I believe that impulse trading should be prohibited, because it can easily lead to unpleasant consequences such as blowing of your deposit. In my opinion, people should stay calm while trading and never let emotions take over control your mind. It's teh worst mistake, however i understand that it's pretty difficult to struggle with such situations.
Nevertheless, if you will train and practice, you will understand that impulse trading will never lead you to success. Also, you have to forget about revenge trading, you shouldn't do it, because revenge trading guarantess that you can say goodby to your money.

Akasuki posted:
Enough knowledge and discipline is the key to avoid impulsive trading. To open a trade, you should have enough reasons behind it. If you can't find enough reasons, don't open trade.

Yes. Proper knowledge and discipline is very much needed to survive in this market.

Impulsive trading happens mostly when we get carried away by our emotions and deviate from our original trading plan and strategy. It often leads to over-trading as well. Emotional control is very much needed to fight the urge to act upon sudden impulses. We must work on building trading discipline and strictly follow our plan while trading.

Impulsive trading goes against sound money management. Your trading strategy must be strictly followed, and you must maintain the highest level of composure and self-control.