There is a well-known myth, “the trading is eighty percent Psychological”! So eighty percent of trading success depends upon psychological fitness or ability? We believe this myth is true. And as the Forex Trading education, it has no alternative.

I think people underestimate the importance of the psychology behind trading. But i believe the psychology of forex trading comes first which gives birth to money management, and as a consequence of trading relaxed and aware patterns are observed in the correct context. And a “system” is then created that can actually last. The stock market holds several benefits, it’s advisable for investors to be cautious while making their decisions. Understanding the stock market basics and doing their research before investing to ensure profitable investment.

You should learn a lot from your old mistakes, over and over. And you will realize that you were being fooled into believing that certain commodities were in a new bull market, when they were actually just having extended bear market rallies. It was a very costly lesson to learn though, as I remained in denial for several months and rode them all the way down, waiting for the next big up leg to begin. Now I look at much longer term charts before entering a trade.

It is important to remember that trading is a risky business and that mistakes cost money.

What is forex trading education

Forex education is all about, how to be a forex trader or how to be a profitable forex trader. It is a lesson, tutorial, course, training, which are given by any experience or expert trader or academy, about how to trade in the world forex exchange market. All forex trading related things or subjects are must included in this education.

What is Trading Psychology?

Psychology is the subject matter of human mental and emotional behavior and sensitiveness. About trading psychology definition, we can say that trading psychology is the emotional effect, mental and emotional action, reaction, behaviors in the time of trading, which can impact upon trading results. It is a perception and mind set about trading management also. However, it is a matter of control and proper reaction on the emotional activities which are appropriate for a positive trading result.

Maintaining the right mindset is among the most important aspects in being a successful trader. How can you exit any traded stock with no winning chances? What is a book profit? This concept sounds simple enough but the assumption is that most traders know exactly what the markets will do next makes this impossible. You must determine when it’s time to leave with the money for your next adventure. As the old saying goes: “If you are not earning money from your business you’ll make a fortune from something else. “. Are we really holding on to what analysis says that market might do then? Tell me the best time for leaving a deal?

What Kinds of Emotional Factors Are Arise During Trading Time as the Trading Psychology?

There are various psychological, mental and emotional effects, reaction and sensitivity attack up on a trader while the trader has been doing trade. Like as:

Greed

Greed is a common human nature. Greed up on money, assets and precious things. It is a very rare case that has no greediness. But, to be so greedy is a harmful and bad exercise thing in any person’s life. In forex trading a great emotional barrier is greediness. Specifically the newbie or immature trader primarily suffers heavily from this psychological problem.   At the beginning of their forex trading career the traders are focused on only money. They want to earn money hugely and want to do profit with unrealistic amounts. In this time a non professional trader makes their trading lot size big with a small account, and also opens many trades at a time with a small account. They, all things done in this time are influenced by only greed of money. They don’t maintain any money management, risk management at all. Without any rezone; they just open their trading platform and get entry in a trade, more and more. They think, in this time,    Only a big lot seizes trade and more trade can bring huge money for them.

But they can’t earn even any money at least. Being so greedy they only can blow their trading account and lose all of their account deposit money. Like this,, the unrealistic and un rezone able greediness  is a great trading psychological problem. So, learn how to avoid this psychological trading mistake.

FEAR

In the trading world fear is a common psychological factor always. We can see this emotional expression in trading in various ways. In the stock market and forex market, traders are often caught by fear and the market gets panic buy-sell pressure.      Being this fearful the trader thinks the market would have more fallen down or more gone to up and they can lose more money. So, they start panic buy-sell, without rezone or discipline. But they can’t avoid any loss also they get more loss.

The fearful psychological problem mostly we find out when a trader remains at a continuous loss in trading. Because, being continuous loss in trading a trader lost all of his confidence to get entry in any new trade. In this time the trader suffers a fearful psychological problem and thinks, if he would have gotten another new trade, he could have gotten more loss. For this psychological trading problem he cannot get any more new trade and can’t continue trading more. And his normal trading life can become destroyed. So, fear is a great trading psychological and emotional problem also.

Euphoria or over confidence

In forex trading maximum inexperience traders are always in a euphoric psychological trap always. Euphoria or over confidence is a dangerous emotional problem in trading. After winning a trade or few trades an immature trader starts to consider own self that he/she is the perfect or accurate trader. And start to make the lot size big, open more trade .In this time the trader thinks , all of his/her trades would have gotten a winning result. But in the financial market there is no any hundred percent winning result. No strategy and system works always in this market.  But euphoria makes a trader feel that he/she is always right, and all of his/her trade definitely would have gotten a winning result. In this psychological condition when a trade goes against the euphoria sufferer trader then he/she gets a big loss, even can blow his account. Because euphoria suffers, traders do not maintain any money management and risk management rolls, and waiting discipline.

Revenge

Revenge mentality also can see in forex trading. When an immature trader has remained in loss position, then he wants to recover his loss and feeling revenge mentality for taking profit. But with a revenge mentality he/she takes random and massive trade entries, and doesn’t follow any discipline, strategy and money management and risk management. The trader only wants to make profit and recover the loss. But the trader can’t recover the loss; he/she also gets the more loss, even losing all deposit money of his/her trading account.

Frustration

Frustration is a common human emotional and psychological problem. In trading life every trader falls into this problem once or more. But it is harmful, when a trader has been suffering for a long time and does not escape this mental problem. A trader can frustrate for several rezone. Like as, when a trader has been remains long time unprofitable and not to do any profit then the trader becomes very frustrated. And being so frustrated he can’t give up trading at least!

Impatience

In trading success, every trader needs to be patient. But, there is a common trading mistake; maximum nonprofessional traders can’t keep patience in trading. Traders do not know how to wait for the best trading setup or winning trade setup. Being impatient, the trader always feels the urgency of trading and money earning. So, the trader always just opens a trading platform and randomly gets a lot of trade entry. As a result the trader can’t earn any money rather than losing money.

As same, the impatience psychological problem we can see often in newbie trader’s running trade time. While their trade goes to some pips profit then they get impatience and close the trade with very little profit. In this time of impatience mentality they can’t run their profit more.

Over thinking and over analyze

For best trading results, so much thinking and so many analyses is not appropriate. Sometimes we see, to get entry in a trade, some traders suffer over analysis and over thinking mental problems. For this problem they cannot decide what they would have done? They get confused to get entry in a trade. They suffer from perfectionist trading psychological problems. But, these types of mentality often destroy the opportunity to get a better trade entry.

Not taking stop loss mentality

This type of mental problem is seen in a newbie trader’s earlier period. In this time the trader hangs on or runs their losing trade as it could be gone. They think and hope that the trade would return back once and become profitable. Being hopeful full upon losing trade becomes change as profitable; they can’t accept any small loss by stop loss order. But when the trade does not return back as profit within account balance margin, it then blows the account! And the trader lost all of his deposit money.

Get rich quick mentality

In forex trading many traders take it as a money printing machine and it can make a trader rich overnight.

Excitement and boring feeling

Maximum forex traders feel very excited at the time of introducing forex trading. Like as, first love or a very uncommon adventure. Another part, feeling bored is a common emotional effect in forex trading.

Trading addiction

Trading addiction a very common psychological problem that can be seen in nonprofessional traders?  Being suffering this problem a trader cannot stay without a trade entry. They feel only trade opening willingness always.

How to build profiting trading psychology and mindset

In the above we have already discussed most of the common psychological problems. Now we can share some tips to control those psychological factors-

Accept all times uncertainty of forex market

The forex , stock, option and all speculative markets are volatile. The market price of that market is always moving with ups and downs. And by this ups and downs a trader can make profit or loss. Such as price movement markets no any hundred percent guarantee of positive results as per expectation. No strategy, system, edge, analysis, advice and signal can work all times in this market. Any time; anything can happen here. There is no any hundred percent prediction and anticipation here. There is a game of great uncertainty but huge probabilities.

As a trader when you come to this market, you must make your mindset as an acceptance person of all time uncertainty of this market. How much you accept the uncertainty of this market, as much you make your trading psychology perfect. By accepting the universal truth is, the uncertainty of the forex market, you can overcome some worse trading psychological problems. Like fear, euphoria, overconfidence, frustration, etc.

Maintain strictly money management and risk management

Although, there is a great uncertainty and no hundred percent winning guarantee in the forex market, one thing that can always and can give fruitful results, is the risk management and money management. We are determined that,   forex market’s profit can come only by risk management. How much you minimize the risk as properly, as much you can get profit. By maintaining exact risk management and money management you must avoid the great psychological problem of greediness, quick rich mentality, not taking stop loss mentality, fear, etc.

Build the back tested-proven trading strategy and discipline

Who is a successful trader? The trader, who has been maintaining concrete discipline, strategy and some effective rolls. Maximum trading psychological mistake you can avoid, if you have a proven trading strategy. The strategy must be taken as your trading strategy after long time back tests and practice. If the strategy works more than seventy percent times then you can start applying it in  your living trading or real trading.

Some Psychological Tips

• Learn before you earn!
• Don’t try to avoid total loss totally! Because, sometimes taking a stop loss is fully unavoidable. And there is no loss in the forex market is impossible!
• Doesn’t micro manage your trading! Run your profit to get tp.
• Early cut your loss, run your profit!
• Don’t make your trading strategy complex! If you make your trading strategy complex, you make a profit complex! So, try to keep your trading strategy simple.
• Don’t focus on money! Focus upon the trading process!
• Try to learn the art of patience in trading!
• After getting an entry in a trade, I try to forget it! And let the trade go to any destination .Either get   it tp or get sl!
• Sometimes it is the best trade, not to do any trade! So, learn to wait for the best trade setup.

Conclusion

In the trading world, any forex trading education becomes useless without trading psychology education. As same, any brilliant and talented traders become failures without psychological fitness!