Does Weather Affect My Trading Decisions?
Since your emotions play a major role in trading, it is not surprising that the weather has a significant effect on your daily investment behavior. While sunshine brings a smile and positive attitude towards the future, and rain usually makes us somewhat depressed and sleepy, let’s look at ways the change in weather can dramatically influence your forex decisions.
Potential Issues in Manage Losing Trades
Regardless of what type of trading context you are considering, losing is just another part of any form of financial trading. Every trader has a bad day regardless of how skilful they are. In fact, the best any person can hope for is a 60/40 ratio in the wins and losses a trader can experience in the market. As losing is something that cannot be avoided the best any trader can do is to be prepared for these loses and have strategies to manage their trades that they are about to lose.
Learning to Win in Forex
Once you’ve lost, you’ve won. That’s how it is in forex trading. You have to lose before you can really win. That is the ante as well as the “dues” that all traders pay to play the game. Those that survive, graduate to the next level of trading, and that is where the winning really begins. How do traders get there?
Contrarian Forex Trading
It takes a certain kind of person to succeed while trading against prevailing winds. It’s so much easier to do what everyone else is doing, and hop on the bandwagon for the ride. The problem is followers” tend not to get off the ride until they are thrown off, and it ‘s usually a surprise. Part of the reason is that the psychological makeup of “followers” often translates into a lack of confidence in their own decision making ability, so they go with the herd instead. Safety in numbers.
The Personalities of Forex Traders
There is a stereotype of what traders are like, or supposed to be like. The image is mainly due to profiles of traders on business news channels as well as how they are depicted in Hollywood movies. Traders are often portrayed as sociopathic reptilian creatures with bad tempers whom talk fast, and trade even faster.
Mass Psychology and Crowd Behavior in Forex Trading
Any classically trained economist will claim that price is the equilibrium of supply and demand. When that fact remains to be true in Economics 101, in reality price is the collective consensus among market participants. Movement of price on the other hand reflects their combined expectation regarding the directional bias. However, in financial market we often see irrational price behavior. The irrationality derives from a mass psychological event which states often price movement is actually the result of its prior empirical movement.
Qualities You Need to Become Forex Trader
With forex trading getting popular as an alternative source of income, an increasing number of people are jumping into this business. Although trading currencies sounds very simple, it actually involves a lot of groundwork such as studying each and every development of the world and identifying the right investment opportunities.
Human Behavior Psychology in Forex Market
The general idea behind market psychology is that market behavior tends to repeat itself around specific financial events and therefore can be predicted via technical indicators.
8 Tips To Stop Anger and Revenge
Making “anger” trades after either having a bad loss or making a bad decision is known to every trader, a beginner and a pro. As soon as emotions get a grip of a trader, useless trades are almost inevitable. Anger and revenge trades are so fatal that can wipe out a forex trading account within minutes. How to identify what triggers trader to emotional trading and what is the way to get out of self-destruction pass immediately with a minimal losses?
Danger of Overtrading - Reasons and Solutions
Overtrading is a familiar issue to all forex traders and is considered the most common pitfall. The compulsive, unanalyzed decisions to enter a trade and the disregard for the trading strategy often turn into an unpleasant and costly experience, therefore most forex traders try to select the very best trades and avoid overtrading at all cost.