Forex trading is a kind of work requiring analytical skills, self-control, patience, quick reaction, and risk appetite. It is for those who have a clue about psychology.
Success or failure on Forex greatly depends on the personal qualities of a trader. Even if you have switched to the automated trading, you will not avoid emotional pressure at making a trading decision. Often Forex traders think that the less emotions they have, the more successful their trading will be, as emotions prevent traders from making correct decision. Nervousness, fear to lose money, hope, faith in luck, regret, pleasure, disappointment, and joy – all these emotions inevitably accompany trading. Do you think traders should control their emotions? What about Aha! factor and intuition?
There are several methods of controlling emotions.
The first one is to change the object of emotions. As a rule, this method gives great results. Change your attitude to the situation and the way of thinking. You can think of a loss, but better of a profit.
The second way is to reconsider your views. Once you change your views, you will be able to change your emotions. All the views we acquire over the years serve as filters coloring all the information we get. These views have a great impact on our interpretation of events.
The third way is to change emotions with the help of the body. Varying facial expression, position, turning to diaphragm breathing, changing the tone, tune, and pace of speech – all this, by the biofeedback principle, leads to shifts in the physiological and, consequently, emotional state of a trader. Even a simple physiological procedure can be an effective tool for changing emotional state and controlling it. Handle your emotions, and it will make you successful.
Concentration is one of the most important components of our emotional and mental state, as an object on which you focus your attention while trading on Forex becomes real and helps understand the situation. Everything influences the analysis of the situation, interpretation of events, and emotions, which, in their turn, affect the decision.
A very important thing is to manage priorities correctly. Do you think of a loss? Do you expect the profit? Please remember that trading is an attempt to keep the balance between the extreme points. A trader has to focus on possible loss as well as on possible profit and try to keep balance between them. A trader should always work on his strategy perfecting it and constantly analyzing the information from the market.