1. GREED
Risking two much on the very start while not too convident with the market is a greedy thing to do, it destroys trading account.
2. FEAR
Fear can arise in a trader after they hit a series of losing trades or after suffering a loss larger than what they are
emotionally capable of absorbing. To conquer fear of the market, you primarily have to make sure you are never risking more
money than you are totally okay with losing on a trade.If you are totally okay with losing the amount of money you have at
risk, there is nothing to fear. i.e you already prepared. Fear can be a very limiting emotion to a trader because it can
make them miss out a good trading plan or opportunities.
3. REVENGE
Traders experience a feeling of wanting "revenge" on the market when they suffer a losing trade that they suffer were so
sure would work out. Meanwhile there is no "SURE" thing in trading NEVER. Losing money and quickly jumping back into the
market to make money which just leads to another loss(even larger ones sometimes). Since you are just trading emotionally
again.
4. EUPHORIA
This kind of feeling when you feel euphoric is usually a good thing. It can actually do a lot of damage to a trader's account
after he or she hits a big winner or larger string of winners. Traders can become overly confident after winning a few trades
in the market.
While many traders enter into a tailspin of emotional trading and losing money after they hit a string of winnings The reason
this happens is because they feel confident and euphoric and forget about the real danger of the market and that ANY TRADE
CAN LOSE.
One particular thing to always remember here is that trading is a long term game of probabilities, if you have a high
probability trading edge, you will eventually make money over the long term assuming you follow your trading edge with a good
descipline. But even if your edge is 75% successful over time you could still hiyt 25% losing trades in row out of 100%.
KEEP THIS FACT in mind and always remember you never know which trade will be a loser and which will be a winner.
5. YOU NEED TO ALWAYS MANAGE YOUR RISK PROPERLY
If you do not control your risk on EVERY single trade you open the door for emotional trading to take hold of your mind, and
i can promise you that once you start down the slippery slope of EMOTIONAL FOREX TRADING. You should EXPECT to LOOSE on any
open position, that way you are always aware of the very real possibility of it actually happening.
6. YOU NEED TO KNOW YOUR TRADING STRATEGY & MASTER IT
Knowing how to be a SNIPER in the market(i.e taking only specific trades) instead of a MACHINE GUNNER (i.e opening of too
many positions just to get some cash) This involves knowing your trading strategy inside and out and having absolutely NO
QUESTION on what the market needs to look like before you make your move or risk your hard earned money in it.
7. YOU NEED NOT TO OVER TRADE
Most traders trade way too much or trades when they feels like, you need to know what your trading edge is with 99% certainty
and then ONLY trade when its present. Once you start trading just because you "feel like it" or because you "sort of" see
your trading edge.You start emotional traading that can be very hard to quit.Don't start over trading and you will likely not
become emotional Forex trader.
8. BE PATIENT AND WAIT FOR THE CONDITIONS OF A PLAN TO UNFOLD
As we've said earlier sometimes you just have to wait for some trading opportunities to reveal. Patient perhaps the most
important virtue that a Forex Trader can possess. When you are a patient trader if means you know what you are looking for in the markets and you wait for your trading edge to appear before you execute a trade.
Risking two much on the very start while not too convident with the market is a greedy thing to do, it destroys trading account.
2. FEAR
Fear can arise in a trader after they hit a series of losing trades or after suffering a loss larger than what they are
emotionally capable of absorbing. To conquer fear of the market, you primarily have to make sure you are never risking more
money than you are totally okay with losing on a trade.If you are totally okay with losing the amount of money you have at
risk, there is nothing to fear. i.e you already prepared. Fear can be a very limiting emotion to a trader because it can
make them miss out a good trading plan or opportunities.
3. REVENGE
Traders experience a feeling of wanting "revenge" on the market when they suffer a losing trade that they suffer were so
sure would work out. Meanwhile there is no "SURE" thing in trading NEVER. Losing money and quickly jumping back into the
market to make money which just leads to another loss(even larger ones sometimes). Since you are just trading emotionally
again.
4. EUPHORIA
This kind of feeling when you feel euphoric is usually a good thing. It can actually do a lot of damage to a trader's account
after he or she hits a big winner or larger string of winners. Traders can become overly confident after winning a few trades
in the market.
While many traders enter into a tailspin of emotional trading and losing money after they hit a string of winnings The reason
this happens is because they feel confident and euphoric and forget about the real danger of the market and that ANY TRADE
CAN LOSE.
One particular thing to always remember here is that trading is a long term game of probabilities, if you have a high
probability trading edge, you will eventually make money over the long term assuming you follow your trading edge with a good
descipline. But even if your edge is 75% successful over time you could still hiyt 25% losing trades in row out of 100%.
KEEP THIS FACT in mind and always remember you never know which trade will be a loser and which will be a winner.
5. YOU NEED TO ALWAYS MANAGE YOUR RISK PROPERLY
If you do not control your risk on EVERY single trade you open the door for emotional trading to take hold of your mind, and
i can promise you that once you start down the slippery slope of EMOTIONAL FOREX TRADING. You should EXPECT to LOOSE on any
open position, that way you are always aware of the very real possibility of it actually happening.
6. YOU NEED TO KNOW YOUR TRADING STRATEGY & MASTER IT
Knowing how to be a SNIPER in the market(i.e taking only specific trades) instead of a MACHINE GUNNER (i.e opening of too
many positions just to get some cash) This involves knowing your trading strategy inside and out and having absolutely NO
QUESTION on what the market needs to look like before you make your move or risk your hard earned money in it.
7. YOU NEED NOT TO OVER TRADE
Most traders trade way too much or trades when they feels like, you need to know what your trading edge is with 99% certainty
and then ONLY trade when its present. Once you start trading just because you "feel like it" or because you "sort of" see
your trading edge.You start emotional traading that can be very hard to quit.Don't start over trading and you will likely not
become emotional Forex trader.
8. BE PATIENT AND WAIT FOR THE CONDITIONS OF A PLAN TO UNFOLD
As we've said earlier sometimes you just have to wait for some trading opportunities to reveal. Patient perhaps the most
important virtue that a Forex Trader can possess. When you are a patient trader if means you know what you are looking for in the markets and you wait for your trading edge to appear before you execute a trade.
