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How to control emotions while trading Forex?

Discussion in 'Beginners Forum' started by ProTrader, Sep 26, 2013.

  1. ProTrader

    ProTrader Forex Supporter

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    Emotions such as Greed, Fear, Poor attitude toward money, etc. are biggest problem of many Forex traders. Winning can cause us over-trading while losing may make us fear trading on the market. Overcome emotions involved you can trade Forex in a better way.

    So, how to control the emotions? Below are few suggestions:

    - Remember that loss is just a part of Forex trading. When you have a loss trade then it's not your fault, not the market's fault and also do not blame your trading system. It's just simple a loss. No trading system can guarantee 100% winning trade.
    - Don't be over-confident when you win a trade. Same as loss it's just part of trading routine. A win trade does not make you expert trader.
    - If you do not do well with money management then you'll soon out of the money. When trading on demo account pay more attention to risk/reward ratio.

    I wish you make more pips!
     
    Andy likes this.
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  3. Decub

    Decub

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    Nice tips. A lot of traders fall in between the three with some always considering each of them at any point when they lose but at the same time, there are losses that result from our own poor analysis of the market, incorrectly setting our Stop Loss.
     
  4. Daisy

    Daisy

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    Well, its easy to control the emotion if you know what you're doing. If you are so experienced and have all of your risks factors in place, you have not much to worry about. If you are newbie, you will fear more and worry more cause you have not a clue of how your trades will turn out. An experienced trader will know even in advance how likely they will win or lose. Yes, experiences help you control your emotion and don't risk too much money or else you will fear more.
     
  5. sindarin

    sindarin

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    [MENTION=54947]Daisy[/MENTION]: but it seems you don't told us so much about how to control emotion based on your post. well, for me i better to stop trade when i am mad or cannot even control mine, or when i loss and i upset because there are more loss. Meditation also become one of the key to control emotion but don't do this while trading, usually after trade it will be a good thing to meditate and 30 hours before start.
     
    ProTrader likes this.
  6. Decub

    Decub

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    Frankly speaking, emotions most time are much more difficult to control than we may think. There are a lot of traders who claim they suppress it as they would their pride but in the real sense, we exhibit one kind of emotional or the other. Some are known to be greedy traders while others are very fearful. Each trader has his own short comings when it comes to Forex and it is only when we are determined that we surpass it
     
  7. Daisy

    Daisy

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    I'm lucky. I do not have emotional problems. Its best to look at forex in an objective way. Its either I lose or I gain so why worry. I will either lose or win so I will do my best to win. The more you trade the less you fear. The more you know the less you worry. People only worry if they do not know. IF you don't know and have no experiences then emotions are there all the time. So, to lessen your worries just learn more, practice more, and you will do better without fear.
     
  8. Decub

    Decub

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    Well, it's a rare thing to come by especially seeing that your funds will likely get drowned, hence the more reason I won't invest much into it for now. Emotional control is the first thing to always come to mind when we think about Forex and how to work on the business environment called trading and without having a firm decision and how to go about it, we only end up having the bad side of it.
     
  9. sindarin

    sindarin

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    That is good for you if you don't have any problem with emotion, even for someone like me i still need to maintain my emotion sometimes especially when i see the pips movement is againts me at 10 pips or more usually i am panick and cut loss, even later it will be back about 10 minutes later and even more profit comes, but it is too late for me. It is easy to talk about emotion management but for me that is hard thing to do
     
  10. jackcm

    jackcm

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    Well, IF you are a scalper, then it is the right thing to do and I see you are disciplined, not controlled by emotion. IF you're not, then that is fear which should be eliminated because I think losing 10 pips is not a big problem.
     
  11. sindarin

    sindarin

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    @jackcm: i am not scalpers actually but more to day trader if you ask me, but there are some cases where i will hold my position only at most 5 or 10 minutest before close it. Controlling emotion according to me is the way of trader to control emotion from each position that trader open and also have different way to do for each trader.
     
  12. Markllee30

    Markllee30

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    We need to control emotions if we wanna trade with profit but yes how to control our emotions is a question.. and I don't think there is any answer for it as its such a thing that we need to have develop ourselves from our own and from our inner thought then only we can be professional and free from emotions.
     
    emmanuel95 likes this.
  13. Decub

    Decub

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    Emotional control is something that develops with time and it is only when the trader practices more that he can learn from his mistakes and overcome his emotions. Even the hard traders who rarely have it rough when it comes to being afraid of the outcome of their trade were once afraid of opening positions.
     
  14. gkintl

    gkintl

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    There is no easy way to control emotion. It takes a lot of time to train our mind for the same. Emotional response can be controlled in an effective manner through proper risk management techniques. This includes selection of lot size, leverage and use of stop loss facility. This reduces capital erosion to the maximum. With a predetermined probable loss, a trader can concentrate well on the prevailing price action. Furthermore, reasonable use of leverage and corresponding lot size ensures that a trader will have an opportunity to recoup himself in case of a loss. As the trader gains experience, he will be able to pick opportunities wisely. Also, with above mentioned risk management techniques, the trader's mind would be in a position to take rational decisions without budging to emotions. It is a long term process and there is no possibility of achieving the same over night.
     
  15. Ruchibhar

    Ruchibhar

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    well this is the most common problem among traders. to become successful in every business you have to control your emotion, otherwise you will not be able to be professional.
     
  16. barood4money

    barood4money

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    Well, it true that it is very difficult to control some emotions like anger, guilt, greediness etc while trading. But you have to control all this things. Because there is no other option. Because if you avoid all this things then it will create problem for you.
     
  17. budado

    budado

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    Its really good to make some profit in forex if we know how to handle our account. I do know we can focus on making so much profit in forex once we can handle our account in here without any worries. I'm just interested to know if I can really handle my account and become a big time trader.
     
  18. barood4money

    barood4money

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    I don't understand that what is the link between handling one account and controlling emotions. I have seen, you are making same comment in all topics. Can you elaborate that how can we control emotion by handling one account.?
     
  19. Daisy

    Daisy

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    good thing for me I can control my emotion very well. I do not have problems controlling my emotions. I think in order to be successful in trading we must learn to control our emotions well. If we don't' do that we can't control it our trades and we will be in big trouble. As a part of being a good trader, we are also emotionally mature so that we can trade without much impulsion. I think being impulsive and out of control will cause us to lose.
     
  20. Pettyeve

    Pettyeve

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    If a trader cannot control his or her emotion when trading, he or she will be finding it difficult to trade. Emotion is the bad thing that will make traders to lose when they are trading. When you want to control your emotions. It is better to not look at forex as something that will make you rich quickly or something that will make you poor easily.
     
  21. Decub

    Decub

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    I believe that any trader who fails to control his emotions while trading would be forced to by losses. You will definitely get the rough edge when you lose. And if that emotion is in form of greed, there is no way the trader wouldn't retrace.