THE TRADERS PSYCHOLOGY ~ reviews on forex trading systems
Before you start trading in the Forex market, a trader should properly analyze his potential positions and also consider his trading plan for the next day.
Many Forex traders beginners neglect this part of their training, because they are eager to make money and jump on the first available exchange based on hunches and guesses. it is only through careful analysis and planning that a professional can keep his losses to a minimum and at the same time maximize his profit.
Therefore, make sure you have a trading plan to limit losses and lock your profits before starting to operate in the Forex market.
Once you have put down a trading plan must do everything to respect it. This is another thing that many traders can not keep under control. Without strong discipline, you can easily divert away from your trading plan and start working on the basis of insights. The trader might stop/ close his position without a profit target or hold a position of declining market for too long in the hope that it will bounce.
Another serious psychological mistake that traders make is the assumption that all trades are profitable. They may have reached this hypothesis because of special cases of activation of the Stop Loss order, and then the market rebounded back favorably. This can easily lead to a traders forget to enter stop loss orders on their subsequent exchanges.
They forget that the Stop Loss orders are there to prevent them from losing more money than you would otherwise lose. It must be remembered that the Stop Loss orders do not act as an impediment to making profits. Although, occasionally, a Stop Loss order could be triggered and a trader loses a certain amount of money, if he maintains his original plan, its total profits will exceed the initial losses. For this reason it is essential that a trader always respects his original trading plan.
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