How to control emotions in forex trading
How to control emotions in forex trading, is to prepare all the steps in trading with a clear trading plan and carry out with full discipline. Emotions are humankind traits, but excessive emotions in forex trading can be a fatal mistake because it will end in regret.
In many forex discussion forums, psychology has always been a portion of knowledge about forex trading. This is because it is very important and determines the quality of trade. A person who has bad emotional control often has different results from someone who has good emotional control.
There are various kinds of emotions that are part of human nature, this is important for you to understand yourself and what emotions emerge and how to control them.
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Using emotion into a forex investment advantage becomes one of the important conditions undertaken in the forex investment. It is necessary for you to invest in managing your own emotions.
Good emotional management affects to profit you will gain from forex business. This decrease produces a sense of emotion as a joy.
Form of Emotion
Emotions fall into several forms. In using emotions to be a forex investment advantage you need to know the shape of the emotion itself. The forms of emotion include the following.
Emotions are anger
This emotion is hatred, annoyance, and a sense of annoyance and bitterness. These anger
emotions are usually expressed with rage and brutality.
Emotions of sadness
Sadness is generally the face of someone who expresses a grim face, self-pity, crying, depression, despair, and feeling lonely.
Emotions of fear
This fear expresses anxiety, nervousness, anxiety, and fear and panic in the face of a thing.
Emotions of pleasure
The form of emotion expressed in the form of pleasure in the form of happy feelings, happy and happy, a sense of pride, joy, and also a sense of fun.
Emotions of love
The form of the emotion of love expresses confidence, close feeling, and sincere kindness.
The form of emotion in the form of astonishment is shown by a stunned expression, amazed, impressed, and gasped, seeing something or even someone.
Emotions are annoyed
Emotional forms of annoyance are expresses by showing dislike, nausea, and being sick to see someone or something.
Emotions are shame
Emotion form of embarrassment expresses with a sense of resentment in the heart, feeling sorry, the shame on the heart, and feel the heart destroyed.
The ability to use emotions in some of the forms described above will help you achieve great profits in your forex business.
Finding and knowing the cause of the emergence of emotions. It’s important to know why your emotions arise. Knowing the cause of the emergence of emotions makes you avoid the peak of your emotions.
Give more time to the brain to think.
How emotions affect forex trading
Emotions in forex trading have a big influence on your trading decisions. When you are emotional, all your trading decisions become irrational and most will only rely on luck.
Meanwhile, to gain profit in forex trading is to avoid emotional trading decisions. Following your emotions and wishes is not a profitable way. It can even speed up the fund’s loss or stop out in your trading account.
Emotions may appear when you open a position and it turns out not as expected. One loss you still accept, two losses you accept, but when a losing streak, sometimes your emotions rise.
Emotions will affect your decision and usually will make you fall in regret.
Common emotions in forex trading
Emotions in forex trading are usually about fear, nervousness, overconfidence, excitement, greed.
This fear can arise due to certain reasons, for example, Fear of Missing Out or fear of missing an opportunity. This happens because you see the price moving strongly, and you are afraid of losing the opportunity of that movement. But you don’t realize that the trend has run and it’s time to saturate the trend.
Nervousness occurs because prices move with high volatility because of the influence of the news, while you have open orders before, and you become nervous for fear of large losses.
Overconfidence occurs because you feel that your analysis must be true to your expectations. This triggers you to open orders with large position sizes. However, you do not realize that you cannot control the market.
Excitement arises because you get profits very easily, this can trigger you to re-open new orders because getting profit seems very easy. But you don’t notice that the trend is not moving in one direction.
Greedy arises because of overconfident, this makes you open a position by taking high risks with high hopes of profit quickly. However, you do not realize that taking a high risk will narrow the margin level and allow for rapid margin calls.
How to control emotion
The best way to control emotions is to make a trading plan. Maybe you’ve heard about one quote, plan your trade and trade your plan.
More or less like that is how to control emotions, with a clear trading plan then everything will be a bright trading direction.
First, make personal rules. Create a trading schedule carefully, for example in a day you only open one position, and use one strategy. Discipline with that rule.
Second, trade only on clear market conditions. You must be sure that the market trend conditions really support you, avoid trading in high volatility or sideways. Usually, this will be difficult for you and can make your emotions disturbed.
Third, lower the size of the position. When you use a large position size, after an order is opened it can make your heart beat faster, and this is a bad emotion. Unlike the low position size, floating a few pips is still comfortable because of your low risk.
How to control emotions in forex trading is very important to apply with a disciplined attitude. You cannot succeed if your psychology is bad, even though having a good trading strategy without discipline will be in vain.
The forex market does provide unlimited profit potential, but remember that this is like a double-sided sword. Without adequate expertise, the sword will make you bleed.
Likewise, forex trading, you are reckless it will be defeated by a cruel market. So study hard, for those who truly will get.
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