This article is about how far the role of psychology in forex trading. What is the psychology of being a major factor in the success of trading? There is an opinion that said that Psych less instrumental, that determines success in trading is trading signal. While others say that psychology plays a factor in 80% to 90%. But from a survey ever conducted in the trading psychology, largely determine the success of a trader.
Many traders still not committed to trading rules which he had made himself a greedy nature, for example, could lead to trading results are not as expected, or the nature of the excessive confidence (over confidence) and ketidak-sabaran. It was a result of traders less concerned on trading psychology. In fact the very psychology factors determining success in trading. In addressing the importance of psychological factors, traders are divided into 4 levels:
First level-trader with absolutely no regard to the importance of psychology in trading, they only concentrate on technical analysis. Such traders believe fully that the only technical factor that will lead to success in trading. They are unsure if it is not successful or suffered a loss means there is something wrong in how to analyze.
Second-level traders are beginning to be aware of the existence of other factors that affect the way trading so that the result is not as expected. The trader has been adept at reading the chart and analyze the marketplace, but still not getting consistent results. He started to figure it out by reading various things in trading and hearing from other traders. In the end he will find the answer that his mind will affect the trading performance, and not always be controlled consciously. He also began to realize that the movement of the market tend to be erratic and trading correct needed the right way of thinking and discipline.
Third-level trader began trying to remove the obstacles that come from within. He began trying to manage behavior in trading with trying to follow trading plan in accordance with the rules that have been created. At this level the trader began to get enlightened on the importance of psychological factors, and begin to act accordingly adjust to thinking. He was trying not to mention overconfident when acquiring a profit or too disappointed when it suffered a loss. He also attempted to avoid trading signals with low probability and wait for the signal that is completely valid.
The transition from the second to third degree level required processes and time is dependent on the will and perseverance of the trader. The attitude of traders who have reached this level will look at his life everyday. He will be more disciplined and more in control of himself. He is not quick to react and will try to wait in anticipation of the situation.
Fourth-level traders will begin to understand the importance of psychological factors in trading, and are aware that it is not easy to apply psychological factors that benefit in trading. But if he was ready and able to pass through the transition period, it is not difficult to be realized. Traders are on this level will be visible on their trading habits has changed from before.
To apply a favourable trading psychology, you have to pass through the levels above especially the third and fourth levels. By always learning and practicing, you will be able to trade without emotion, disciplined and patient.
Many traders still not committed to trading rules which he had made himself a greedy nature, for example, could lead to trading results are not as expected, or the nature of the excessive confidence (over confidence) and ketidak-sabaran. It was a result of traders less concerned on trading psychology. In fact the very psychology factors determining success in trading. In addressing the importance of psychological factors, traders are divided into 4 levels:
First level-trader with absolutely no regard to the importance of psychology in trading, they only concentrate on technical analysis. Such traders believe fully that the only technical factor that will lead to success in trading. They are unsure if it is not successful or suffered a loss means there is something wrong in how to analyze.
Second-level traders are beginning to be aware of the existence of other factors that affect the way trading so that the result is not as expected. The trader has been adept at reading the chart and analyze the marketplace, but still not getting consistent results. He started to figure it out by reading various things in trading and hearing from other traders. In the end he will find the answer that his mind will affect the trading performance, and not always be controlled consciously. He also began to realize that the movement of the market tend to be erratic and trading correct needed the right way of thinking and discipline.
Third-level trader began trying to remove the obstacles that come from within. He began trying to manage behavior in trading with trying to follow trading plan in accordance with the rules that have been created. At this level the trader began to get enlightened on the importance of psychological factors, and begin to act accordingly adjust to thinking. He was trying not to mention overconfident when acquiring a profit or too disappointed when it suffered a loss. He also attempted to avoid trading signals with low probability and wait for the signal that is completely valid.
The transition from the second to third degree level required processes and time is dependent on the will and perseverance of the trader. The attitude of traders who have reached this level will look at his life everyday. He will be more disciplined and more in control of himself. He is not quick to react and will try to wait in anticipation of the situation.
Fourth-level traders will begin to understand the importance of psychological factors in trading, and are aware that it is not easy to apply psychological factors that benefit in trading. But if he was ready and able to pass through the transition period, it is not difficult to be realized. Traders are on this level will be visible on their trading habits has changed from before.
To apply a favourable trading psychology, you have to pass through the levels above especially the third and fourth levels. By always learning and practicing, you will be able to trade without emotion, disciplined and patient.
Posted by Unknown on Wednesday, February 4, 2015 - Rating: 4.5
Title : Profitable Trading Psychology
Description : This article is about how far the role of psychology in forex trading. What is the psychology of being a major factor in the success of trad...
Description : This article is about how far the role of psychology in forex trading. What is the psychology of being a major factor in the success of trad...
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