Trading is an activity that demands analytical and inference skills. It requires patience from the one hand and quick response with risk readiness from the other. Trading is an activity for those who understand psychology. These factors will largely determine whether you succeed or loose on Forex. Even if you switch to system trading, you will not avoid the emotional stress when making trading decisions.
Forex traders are often inclined to believe that the less emotion, the better trade - i.e. emotions prevent a correct decision. But the sense of anxiety, fear of losing money, hope and belief in luck, regret, joy, frustration, and joy again – all these feelings inevitably associated with trading. Suppressing emotions when you're feeling overwhelmed means disregarding the sixth sense, intuition, and finally, insight.
It is known that emotions are also transmitting a flow of information to us. We are guided by this information, act under impressions from it. But this is given to us in order to control our emotions and to change one sentiment for another.
There ways to control emotions:
First, it is possible to change your emotions by switching to another object of your concentration. As a rule, this method is very effective. The thing which draws our careful attention becomes real for us. You can consider suffering losses, or vice versa render an opportunity of gaining profit.
The second way is the following: having changed your convictions and believes you can alter your emotions. Every belief that we attain during our lifetime is a sort of a filter for us, influencing all the information perceived. All views accumulated during our life affect the interpretations which we are admitting into our consciousness.
And finally, the third way to change our emotions is to modify physiology. A change of breathing, mimics, body position, the tone and tempo of our voice, all this has a direct influence on the emotive part of not only a Forex trader, but of any person.
A concentration of attention is one of the most significant constituents of our emotional condition. Because the thing you are focused on in the process of Forex trading becomes not only an object of happening reality, but also a perception of factual reality. All actions influence your interpretation of events and consequently, affect your emotions. All this manipulates your behaviour, and decisions get emotional connotation. In this case it is needed to define priorities: what are you waiting for? Are you entertaining a possibility of losses? Or are you expecting gains only?
Those who see only losses are likely to hesitate for too long entering the market or can even skip a trade. But once having decided to enter the market, they are gaining profit quickly.
Trading is an attempt to balance the opposites. A trader should focus on profit and loss and try to balance them. A trader should concentrate on probability of his methods, and on information provided by the market, as it is the only accurate and reliable one.
It is proved that our body manages our emotions, and emotions affect the thoughts. The easiest and the most correct way to change emotional condition is to change your physiology - tempo and depth of your breath, voice or even your pose.
Pay attention to your position, the way you sit, breathe, whether the muscles of your face, shoulders and of all body are tense. If you feel discomfort, you should only sit cosily.
Absolutely simple physiological manipulation can serve an effective instrument to control your feelings.
Control your emotions, and this will definitely make a more successful trader out of you!