Automated forex trading can help remove the emotion, however if you watching every tick and movement in your account balance you won't be able to help but getting emotionally involed, you have to stay cold stone disclipined to success in forex trading.
Emotion In Trading
- Thread starter johnm
- Start date
- Watchers 2
Automated trading does not work in the long run. Trading requires the trader to use his brain. You need to understand the market and what you're doing. I have been in this industry 7 years and I have yet to see an automated method that works consistently year in, year out.
As for emotion and psychology. I posted a article I wrote a while back on this but it is waiting for moderator approval. I will link to it when/if it is approved.
As for emotion and psychology. I posted a article I wrote a while back on this but it is waiting for moderator approval. I will link to it when/if it is approved.
well i think that the main problem for trades especially beginners is not knowing when to get out of a loosing trade.
sometimes it really feels like gambling because you can see that most traders will close a winning trade at a very low price in order to prevent it from loosing but when a trade is going the wrong way, they tend to increase the SL by thinking that it will go up. normally that will cause them to lose even more than they expected.
in another words, most people are greedy.
i prefer not trading while i feel bad or upset so it wont affect my trades and the most important thing is to control those emotions because it can only harm your trading skills
sometimes it really feels like gambling because you can see that most traders will close a winning trade at a very low price in order to prevent it from loosing but when a trade is going the wrong way, they tend to increase the SL by thinking that it will go up. normally that will cause them to lose even more than they expected.
in another words, most people are greedy.
i prefer not trading while i feel bad or upset so it wont affect my trades and the most important thing is to control those emotions because it can only harm your trading skills
hi! in my own opinion, most of the time financial market are being manipulated by this financial markets. That's y understanding the market takes a lot of time and effort. and also that why we have this specialist who give their comments and recommendations for most of the time their intuitions and speculations are far more better than ours.
Hey Johnm! There is not a question that the trading market tugs at your emotions. To answer your question- I think trading is really all about mentality; Although there are many successful trading techniques, it is still impossible to earn money if a trader cannot control their emotions. It is best for a trader to isolate trading and their emotions.
Sometimes however, it is important to go with your gut when trading: delving in based on a gut feeling however also knowing when to isolate yourself and pull out of a trade.
Good Luck- stay focused and keep trading
Re : Emotion In Trading
Obviously they do!! As human beings, we generally have a stronger preference for avoiding losses than for making gains when evaluating the risks of an investment.
Obviously they do!! As human beings, we generally have a stronger preference for avoiding losses than for making gains when evaluating the risks of an investment.
Hi john- My advice: The most important thing in investment is discipline. Basic Psychology of investor says: When an investor makes profit is pessimistic when he loses he is optimistic. You need an investment plan and to act accordingly at any given moment, the plan in a combination of self-discipline will lead in high probability to profits. WARNING: it's not simple as it sounds!
GOOD LUCK AND HAPPY TRADING
Financial markets do test your emotions!
Yes, financial markets do test your emotions. It is very common that most forex new traders will lose their funds when they started to trade forex on financial markets. The reason of this situation is they haven’t stable emotion like experienced traders.
When you want to earn money through financial markets, you should make some practice on trading at first. Maybe you will choose demo account to try your luck. But it is no any help for improving your ability of your emotion control. Here I recommend you to try to trade forex on Micro account. Every deal in micro account is 100 times smaller than in dollar account, profit and losses are also 100 times smaller. I think, a micro account is very suitable for you and for every newbie to practice trading skills and emotion control.
Profiforex Corp. is one of the best micro account forex brokers. Maybe my information helps you.
Yes, financial markets do test your emotions. It is very common that most forex new traders will lose their funds when they started to trade forex on financial markets. The reason of this situation is they haven’t stable emotion like experienced traders.
When you want to earn money through financial markets, you should make some practice on trading at first. Maybe you will choose demo account to try your luck. But it is no any help for improving your ability of your emotion control. Here I recommend you to try to trade forex on Micro account. Every deal in micro account is 100 times smaller than in dollar account, profit and losses are also 100 times smaller. I think, a micro account is very suitable for you and for every newbie to practice trading skills and emotion control.
Profiforex Corp. is one of the best micro account forex brokers. Maybe my information helps you.
At the risk of coming off like a "Trekkie" this thread reminds me of a scene in Star Trek V (I think) where Kirk says
"You know that pain and guilt can't be taken away with the wave of a magic wand. They're the things we carry with us, the things that make us who we are. If we lose them, we lose ourselves. I don't want my pain taken away! I need my pain!"
I believe that the years of pain and emotional turmoil has made me a much better trader and more respectful of the market.
"You know that pain and guilt can't be taken away with the wave of a magic wand. They're the things we carry with us, the things that make us who we are. If we lose them, we lose ourselves. I don't want my pain taken away! I need my pain!"
I believe that the years of pain and emotional turmoil has made me a much better trader and more respectful of the market.
Similar threads
