Let’s talk about the most common mistakes of forex investors that can either prevent them from earning profit or wipe put their entire forex account. The top most killing psychological aspects of forex exchange investor are as follows:
1. Always Enter the Market against the Trend
Sometimes traders enter in the market with the thinking that the trend in the market is already on its peak and it will stay there. But, what happens is, the trend proceeds and the traders lose their trades. Sometimes we lose trades in the market because we rely on our conscious and on subconscious mind instead of our forex trading system and on our tested and proven forex trading strategy and when lose trades we start getting negative feelings about the market.
2. Entering in the Forex Marketplace when its too Late
Some traders have the habit to take risks very easily whereas; some forex exchange traders are risk allergic. Remember, whenever you join the currency trading market you will find the element of risk in it but if you will take reasonable risk and if you trade in the direction of the forex market trend then you can create winning position in the market.
3. While Losing, Increasing the Position in the same Direction
This particular pattern happens with those forex exchange traders who can’t face any type of forex trading losses. Such types of traders are generally great gamblers by nature and they usually possess high egos.
A trader buys a forex trading position and the market starts moving down instead of moving upward. All of sudden, a forex exchange trader purchase more. The market keeps on moving down and the traders still purchase more. When we do so, the market will either kick us out or it will give us a margin call.
Why the market behaved like this? We take positions in the market and after sometimes when we lose our trades, we become too self-possessed that we don’t accept that we are making wrong decisions.
Future foreign exchange traders should learn to trade emotionlessly in forex marketplace and they should never involve their egos in their trades. Just a firm control on your feelings and on your emotions and a full time practice on free forex account will keep up happy and prosperous in forex exchange market. The market can have peaks and it can have downfalls as well. Traders should learn to adjust with the changing forex exchange market conditions by using well proven and tested forex trading psychology.
Post by Ali