Do not ignore the article below. Seriously! The defeat is in sight if you are careless in the trading ... There was some success factor in doing Trading:
PERSONAL TRADER
There are six of psychology that affect the individual in the transaction:
1. Take responsibility for your capital (though only 5 USD of capital that you receive for free)
It is interesting that many people love to put their savings and funds in the hands of others, accepting losses as easily blame others than take responsibility for the funds they own.
The first step as an individual is to believe in yourself and your own abilities. One of the most startling discovery when you start trading or have observations of how the stock market experts very often make mistakes. This is a real proponent of the belief that when you begin to understand that with a solid background and knowledge, discipline, and determination of a good trading plan will make you act professional.
You'll be in a market that moves several times faster than other markets and with leverage, appreciation and loss mixed repeatedly. The best way to cope with thoughts of using your own money and volume of transactions you will make is to forget about money and talking about part of the points. So instead of counting your gains and losses in the factors of dollars, talk about the factors of the points the advantages and disadvantages. If you take this at a very early level, it will feel the same if you do a demo trading, mini or 10 contacts from the full accounts.
When doing a demo trading account, most people have done very well. Their trade without fear. But when they transact with real money, even if only a mini account, they suddenly find themselves dealing with the manner in which they lost a lot of opportunities and collect a lot of losses. They easily lose their nerve and go into fear and greed. This can happen also when you go from a mini account or full account of his own trading contracts to trade multiple contracts.
Try and berdaganglah without thinking how much money will you who might profit or loss. Trade with right thinking, no matter how many contracts you trade, or even if you do a transaction on a demo account.
2. Cut your losses quickly and let your profits run
This simple concept is one the most difficult concepts to be implemented and this cause of death for most traders. Most traders violate a predetermined plan and take advantage of them before reaching their profit target because they feel uncomfortable sitting in a favorable position. This same type of person who would easily sit in the position of the loss, allowing the market to move against them for hundreds of points in the hope that the market will return. In addition, traders who have been affected by the stop them repeatedly just to see the market return at their will once they come out, they quickly move the stop from their trade with the belief that this will always be the case. Stop orders are held for the subject, and to stop you from losses exceeding the amount specified in advance! False belief is that every transaction must be profitable. If you have a profit 3 out of 6 transactions then you have to do well. How is it possible you can make money with only half of your trades to be a winner? Quite simply, you allow your profits at the win to turn around and make sure that your loss experience is minimal.
Another good strategy is to move the stop loss (points where the transaction would be sold if it went the wrong way) behind the trade to a level where a recall can be accommodated but a reversal will be locked at least get a little advantage.
3. Discipline
Berdaganglah with a disciplined planning. The problem of many traders is they think shopping is more serious than trade. The average shopper would not spend $ 400 without serious research and examination of the products to be purchased, as well as the average trader would make a trade with ease burden him $ 400 based on less than "feelings" or "alleged". Ensure that you have a plan before you start trading. The plan must include stop and limit levels for transaction, the same as your analysis should include the underside of the expected well above the expected side.
4. Too much information
Like many other hard efforts, it is important to keep a simple trade. Many traders start with simple and successful strategy, but find themselves trying to cut and change to find a better system. They also allow themselves to be influenced by other opinions and too many fundamentals.
Stock market trading is usually similar in this regard. Good training is to teach a child or adolescent simple trading strategy or design rules to follow and allow them to trade a demo account. Many traders who have done this feeling of surprise that their children can enter into transactions with good, consistent, and often with spectacular results. The lesson is that they do not deviate from existing rules and is not influenced by the media or fundamentals. Many fundamental traders are not concerned at all and successful transactions. Rule here is to keep making it simple, do not allow yourself to be confused with too much information and if you're unsure whether or not in a good emotion in the mind, do not make a deal.
5. Do not marry your trades
The reason trading with a plan is very important because terobyektif analysis was done before the trade is executed. Once a merchant is in a position to analyze the market they tend to differ in the "hope" that the market will move in the desired direction rather than an objective vision of the changing factors that may turn against your original analysis. This is particularly an actual loss. Traders with a losing position tend to marry their position, which causes them to ignore the fact that all signs lead to losses. Do not trade more with the hope that the market will turn into your will, this will only accelerate your losses.
6. Do not bet on this field
Do not overdo the transaction. One of the many common mistakes that traders make is too high leverage from their account by trading a much larger size than they should balance their trade wisely. Leverage is a double edged sword. Just because one lot (100,000 units) of currency only requested $ 1,000 as a minimum margin deposit, it does not mean that a trader with $ 5,000 in his account can transact as much as five lots. One lot is $ 100,000, and must be treated as a $ 100,000 investment and instead put the $ 1,000 as a limitation. Many traders analyze the charts correctly and place the transaction wise, they also tend to over-specify their own leverage. As a consequence, they are often forced to exit a position at the wrong time / wrong time. The best rule is to trade with 1-10 leverage or never use your balance more than five at a given time. Trading currencies is not easy. (If easy, everyone would be a millionaire!)
MARKET PSYCHOLOGY
There are five market psychology that affect the fluctuation of currency:
1. Fundamental and Technical
An idealist want us to believe that the value of a currency is a real reflection of the economic evolution and state of the state assets. Nothing else other than the truth. The value of one currency reflects market sentiment and what is affecting sentiment. This would broadly include the fundamental chapters of this lesson. In this section we will briefly see how the behavior of the market and reflects the direction in which the currency traders gained from perspective views.
The traders use two basic tools to guide them in making strategies for trading, that is Fundamental Analysis and Technical Analysis. We emphasize the technical as traders in the world uses charts and equipment are almost equal in predicting market trends. The reason the market is sometimes very unpredictable if the majority use the same graph to determine patterns and trends, then these two things is likely true in a similar style. So a few thousand traders who all have the same resistance line mapping would be very possible to design direction and trade them in accordance with these lines.
In other words as the announcement of fundamental economic data, the threat of war or an individual event can make a market in a state of frenzy. This needs to be considered when making the decision to trade or not.
The market always reacts before the economic data was announced, according to the general placement of data on market expectations. If there is a difference of expectations - expectations, the market will react negatively or positively. Sometimes, a good strategy is found in a quiet market is placing orders for transactions both sides of the current market price before the trade was announced and the main data will be activated if there is sudden movement. This does not affect the direction in which the trade will go, at least one transaction will be activated with the right direction.
2. News and rumors
Here there are endless differences of opinion among some traders about what is most important: fundamental analysis or technical analysis. Most traders use technical analysis, many of them do not use fundamental analysis at all. This is the stupidest action to do if someone ignores altogether the fundamental analysis as they often explain the sudden changes that occur in market sentiment. Typically, a merchant will obtain the services of world news events like the bomb in a place or announcements of economic data can be the catalyst for creating movement in the market. Even more that are not following the movement of technical behavior.
When watching the news service, it is important to not get into rumors. Usually rumors range of futures contracts on the termination value of the currency at a certain price. These rumors are more common than not where the traders and institutions caught in the position they should not be in it and try to discuss the rise or fall in the market.
Markets react to world events. The threat of war or terrorist acts can also send the market into new trends and directions in a matter of minutes. Usually after this event, the market tends to return to normal trading patterns.
3. Concerns and Intervention
Due to the size of the Forex is not a single country or institution can have a long impact on the market. However some countries use their central banks to affect the market both in the short and long term.
In 2002, the Bank of Japan feels too fast declining U.S. dollar against yen and begin to affect the competitiveness of Japanese exports to America. In an effort to halt the trend, they place an order for U.S. dollars to 10 billion dollars at the same time within minutes. Markets react to the U.S. dollar to rise up to 150 points within minutes. They use this tactic any time and at different prices. Actual influence of the 10 billion in general settled briefly in markets where trades 1.5 trillion dollars a day, but the endless growing concern in the market so it may take several months to manage the U.S. dollar against yen.
Only discussion of intervention will often be seen turning from U.S. dollar downtrend.
4. Equation Mentality
Usually the spirit of profit in a transaction and continues to move up or down and not driven by anything other than someone following someone. A published data or events can trigger some traders to buy or sell. Other traders saw the possibility of movement and decided to walk on or under the new trends taking place. They are in the placement of orders or sell their positions and movements either up or down say for a profit. Prices will continue to rise or fall in step rapid rise to some traders enter the market or reduce their opening that has fallen and the price starts to come out from the existing level.
Additionally, many of the traders who are too quick to act in the trade can make a profit or buy back, which will bring the movement to stop or even reverse the trend, usually returning to the start or stabilize prices at a new level. It is always important to not enter into this trade until there is evidence of a recall and the possibility of a continuing trend. This is the time to look at the Fundamental Analysis and Technical Analysis to see what is causing such movement and the possibility of continuation. Here we say that trade is not a reaction to the draft. Do not trade based on the reaction, based on the design trade. Only the movement of trade or graphic design or strategy you who told you to trade, or berdaganglah if your chart tells you that there are still a lot of movement in the current trend.
CONCLUSIONS
1. To achieve success in trading, you should be careful of your own emotions and use tools and strategies where they do not affect your decision. The world's most successful traders are more women, because women have good communication and they can control their emotions. No place for arrogant and haughty behavior or emotional instability in the placement market.
2. Learn and observe the reasons for the fluctuations in the market, found that of the Analysis of Fundamental or Technical Analysis or combine both. A good rule to follow is that if one or the other does not look right - do not make a deal. Do not ever enter into transactions on the trends just for the sake of being different from the others, we say many times through this manual "TREND IS YOUR FRIEND."
3. Experience will give you the ability to understand the psychology of the market and to measure the balance between fundamental analysis and technical analysis.
4. You only need to be careful of your own emotions and use the necessary behavioral changes, this will enable you to become a successful trader.
5. Understand that none of the training, understanding or information that can make you a good trader. The key is to be able to trade in the correct level of emotion and without fear. If you do not feel your true self, stay away until you feel your true self. Do not try to deal more to cover losses or increase your profits; hold on to the plan. Identify your strengths and weaknesses. Take responsibility for yourself, your investment and your emotions.
