Psychology of Forex Trading

Monnex posted:
Here we will talk about how to plan your trade and what to do before, during and after

For new traders; I would suggest to close their terminal after making a new deal! Because, they are unable to control their emotions during live sessions of trading! Whatever, I need at least 30 minutes for doing market analysis! In addition, I never close my trade positions without final result, either its SL or TP! When I get my daily trading target then I take rest, that’s all.

It is wise to always set the SL and TP levels. What you say about closing the terminal could work well and safe only then. Technical analysis and fundamental analysis is the homework you do before opening a trade, good that you pointed this out. The more knowledge is involved in trading, the less emotional are the decisions.

Regarding SL, I couldn’t stress enough how important it is to place it properly. If you don’t you might end up losing a lot in the long term.

PriceAction13 posted:

Monnex posted:
Here we will talk about how to plan your trade and what to do before, during and after

For new traders; I would suggest to close their terminal after making a new deal! Because, they are unable to control their emotions during live sessions of trading! Whatever, I need at least 30 minutes for doing market analysis! In addition, I never close my trade positions without final result, either its SL or TP! When I get my daily trading target then I take rest, that’s all.

I guess you never rest then?

RPatell posted:

FxMasterGuru posted:
With algorithmic robot trading there is no concern of trading psychology... Also, less stress, more sleep and even more free time.

Added bonus: Making profits during the Asian session while you are sleeping. 😄

I guess this is the case when there is no flash crash of the markets during that session. Maybe you sleep better in general but isn't it a stress with the need to update the robots settings regularly, and when they go wrong? I'm not expert on auto trading so I was just wondering about these aspects as well.

Correct. During the early Asian session hours a flash crash is unlikely, nevertheless, it can happen to any trader using higher than 1:5 leverage and everybody should be prepared (mentally and financially) to wake up for an empty account.

Furthermore brokers can disappear with ALL segregated client funds, as it happened to me when CTM's owner (Reza F**ing Mokhtarian) has stolen $500,000+ clients funds spending it on his mansion and luxury cars...

Getting back to automated trading: The optimal EA is ''robust'', i.e. it can work well during favorable market conditions and survive less favorable market conditions with modest losses. Such EAs don't need updates. Losses are part of the game - as business expenses - the same way as Casinos profit only from the ''0'' or ''00'' on the roulette, meaning that these two numbers are their ''edges''. Even if players win big on roulette occasionally, statistically it is ALWAYS the Casino who wins. In summary: a good EA should function as a roulette table for a Casino.

mlawson71 posted:
Regarding SL, I couldn’t stress enough how important it is to place it properly. If you don’t you might end up losing a lot in the long term.

Unless your ''B-booking'' broker manipulates your stop losses at will. Here is an introduction from the manual of a ''virtual dealer plugin'' parasite software - sold on Forex Expose by dozens of vendors - used by practically all ''B-booking'' brokers:

Forex Psychology: never dazzle thinking that you will become a millionaire with minimal investments and without any small risk

leopoldo posted:

naiza posted:
It seems that the theory of 'too much' is not favorable.

What do you mean by that?

You can not risk 'too much'. Trading 'too much'.
That's what I mean

Forex psychology: always learn from the 'good forex traders'. Before you take a step evaluate those who have walked that route before you.

Monnex posted:
 Forex Psychology: Always think risk before reward

Yes, you will save yourself a few unnecessary losses.

when the risk is low you can sleep better

mitchel14 posted:
Forex Psychology: never dazzle thinking that you will become a millionaire with minimal investments and without any small risk

Correct. Forex is modern days' 'Gold Rush'...

As we all know, during the 'Gold Rush' mostly the merchants had become rich... Like Forex brokers in modern times....

We are like these guys, just in a different century...

Monnex posted:

FxMasterGuru posted:
With algorithmic robot trading there is no concern of trading psychology... Also, less stress, more sleep and even more free time.

Added bonus: Making profits during the Asian session while you are sleeping. 😄

depends in your EA strategy :-)

I absolutely agree with that.

Forex Psychology: If you don't have trading strategy but you have winning trades that means you are gambling and lucky for a while but at the end you will loose all your money

Forex Psychology: Be honest with yourself if you are loosing money from trading stop and find good strategy then try it on DEMO accoount

trill12 posted:

Monnex posted:
Forex Psychology: If you don't have trading strategy but you have winning trades that means you are gambling and lucky for a while but at the end you will loose all your money

I agree... In this business strategy is everything! You can not trade at the mercy of luck.

of course

Don't let trading become a dangerous gambling habit or a gambling substitute.

Start with a VERY SMALL, but REAL LIVE account and with a strict MONTHLY budget.

If the budget is gone, reevaluate the mistakes until next month's budget kicks in. Never violate this rule.

Should your budget survive the month: Good for you! You are on the right track!

FxMasterGuru posted:
Don't let trading become a dangerous gambling habit or a gambling substitute.

Start with a VERY SMALL, but REAL LIVE account and with a strict MONTHLY budget.

If the budget is gone, reevaluate the mistakes until next month's budget kicks in. Never violate this rule.

Should your budget survive the month: Good for you! You are on the right track!

I agree with you that REAL LIVE account is the best learning field to trade, but with very small amount of money

FxMasterGuru posted:

mitchel14 posted:
Forex Psychology: never dazzle thinking that you will become a millionaire with minimal investments and without any small risk

Correct. Forex is modern days' 'Gold Rush'...

As we all know, during the 'Gold Rush' mostly the merchants had become rich... Like Forex brokers in modern times....

We are like these guys, just in a different century...

Thank you ... you could not graph it better. 😉