Trading Psychology

Key levels to watch for:
Support: 1.1309; 1.1270;
Resistance: 1.1492; 1.1540.

Ohhh Psicology! The hardest part to learn!

My humble advice for new traders is to start with little money... bc the only way to learn how to handle your emotions and be disciplined is by blowing up a couple of accounts (and you probably will!). Its not the same with demo account, when real money is on the line and when it hurst is when you really learn. FX is marketed as an easy way to get rich overnight but it seems that the mayority of traders, especially newbies loose money.

So be disciplined and dont get greedy when you have a long winning strike! Thats what kills account. Keep your leverage low and you will be able to go to sleep at night with a loosing position opened.

Good trading!

Psychological condition depends from trader to trader, everyone has a different approach towards trading, but as you spend time in the market you make more matured decisions.

Unfortunately reigning in your emotions is usually one of the hardest things to learn about Forex trading. You can learn the theory, you can even learn how to apply it in practise, but if your judgement is clowded by greed or fear you still will struggle to make a profit.

Timeframes simply need to match the personality of the trader. If they reflect your emotional status - all fine. If you feel comfortable with M1 charts - trade on them. When it comes to stop losses, I would mention that a trailing stop could work even better.

mlawson71 posted:
How reliable are the signals on the 1-minute frame though?

if you plan to stay in the market for even less time, they should be reliable 😉

martinkolbe posted:
Timeframes simply need to match the personality of the trader. If they reflect your emotional status - all fine. If you feel comfortable with M1 charts - trade on them. When it comes to stop losses, I would mention that a trailing stop could work even better.

Good points Martin! I agree with you 😄

MartimAlmeid posted:
I try different indicators and when all are presenting the same signal I open my position! sometimes the indicators show different signs so I just wait! 😀

Very good advice! I always try to do the same. What indicators do you use for identifying the signals and make the decision?

martinkolbe posted:
Timeframes simply need to match the personality of the trader. If they reflect your emotional status - all fine. If you feel comfortable with M1 charts - trade on them. When it comes to stop losses, I would mention that a trailing stop could work even better.

You're right. In the end what matters the most is what strategy fits the individual trader. If something is profitable for you, by all means, stick to it.

deresel posted:
Key levels to watch for:
Support: 1.1309; 1.1270;
Resistance: 1.1492; 1.1540.

Good post but I would suggest you join the dedicated discussion for the EURUSD pair sharing your technical analysis as here the topic is different.

snapdragon1970 posted:
If your scalping on 1min time frames your moving in and out of positions quickly on your experience and skills not on a strategy.

I just what to add that choosing the trading style is part of the strategic decisions everyone of us make. Scalping is just very short-term oriented.

mlawson71 posted:

martinkolbe posted:
Timeframes simply need to match the personality of the trader. If they reflect your emotional status - all fine. If you feel comfortable with M1 charts - trade on them. When it comes to stop losses, I would mention that a trailing stop could work even better.

You're right. In the end what matters the most is what strategy fits the individual trader. If something is profitable for you, by all means, stick to it.

Yes, this is a the golden rule to follow!

martinkolbe posted:

mlawson71 posted:

martinkolbe posted:
Timeframes simply need to match the personality of the trader. If they reflect your emotional status - all fine. If you feel comfortable with M1 charts - trade on them. When it comes to stop losses, I would mention that a trailing stop could work even better.

You're right. In the end what matters the most is what strategy fits the individual trader. If something is profitable for you, by all means, stick to it.

Yes, this is a the golden rule to follow!

That's for sure! 😄

martinkolbe posted:
Timeframes simply need to match the personality of the trader. If they reflect your emotional status - all fine. If you feel comfortable with M1 charts - trade on them. When it comes to stop losses, I would mention that a trailing stop could work even better.

Good point Martin, I agree with you about that.

mlawson71 posted:
Unfortunately reigning in your emotions is usually one of the hardest things to learn about Forex trading. You can learn the theory, you can even learn how to apply it in practise, but if your judgement is clowded by greed or fear you still will struggle to make a profit.

Did you managed to take control of the emotions after all? Or still learning how to do it?

The psychological factor is a very important reason for the success and failure of the trader. By having a clear trading strategy and being able to accurately analyze the market, most traders record losses due to the inability to control their emotions.

I think there really is no room for emotions or personal feelings when it comes to Forex trading. Make sure that as a trader, you stay completely objective and scientific or else we might see some very heavy losses. Now, the big question is how to control your personal emotions and keep them out of the bargain?

I think the answer would be a negotiation technique. Make one for yourself and stick to it, no matter what.

However observe the market movements, both from the fundamental and technical point of view, and if something does not look good to you, do not trade, it is as simple as that. Trade is never against the trend, always remember 'the trend is your friend'. If you experience a loss, do not try to overcompensate on your next trade, stick to the plan.

You will not be able to become a successful trader until you are ready for both wins and losses. Both are inseparable and important parts of the trading process. On the way to learning the art of trading, you can often find bribers. When the trader focuses on problems (there may be a multitude of problems, for example lack of means, resources and knowledge), he feels anger, guilt, disappointment and dissatisfaction. But such an emotional state will not allow you to move forward. If the loss is unacceptable to the trader, he will not be able to close the position he loses. When the trader is not prepared to face losses, in general, they occur more.