Emotions in Forex trading

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Emotions can be a problem in forex trading. Whether you are a newbie or an experienced trader, we all have to deal with emotions that will affect our trading. 

How do you deal with your emotions?
 
Control your risk, so the loss of a trade or a few in a row is of no consequence.
 
Vytautas Paliokas:
Emotions can be a problem in forex trading. Whether you are a newbie or an experienced trader, we all have to deal with emotions that will affect our trading. 

How do you deal with your emotions?

I've sometimes thought of creating a training utility with its main feature being "stressing" the user so that when they sit on a live account it seems calmer , but it's a different kind of emotion i think . That's where ftmo challenges are superior because you have real oppurtunitities on the line and for some you also have to pay a fee if i'm not mistaken.

Anyway in betting there is a saying the moment you place the bet you consider it lost , plan your picks before any wins or losses come in . 
 
If you can't sleep when your trade position is open, it means your trade position is too big ...
 
Vytautas Paliokas:
Emotions can be a problem in forex trading . Whether you are a newbie or an experienced trader, we all have to deal with emotions that will affect our trading. 

How do you deal with your emotions?

Understand this scenario with any video game boss fight.

When the Boss hits the player, what he will do? Cry due to emotion or step back, protect and prepare for next kick to boss?

Same rule applies to overcome emotion

1. High leverage - If you do any kind of trading where leverage is involved, its hard to deal with emotion

2. Higher timeframe chart - When you trade higher timeframe chart, there is high probability of getting some time before attack as compared to lower timeframe, but in lower timeframe, a trader may do human errors and can not control emotion if such big candle occurs

3. Not using terminal for auto risk calculation : When a trader fails to calculate risk, or do it manually which is more prone to human errors, then its highly probable that it will difficult to win over emotions.

4. Not understanding how institutional makes money : Institutional traders trade with large orders, sometime 10000x of what a retail trader trades. Do you understand why they dont get emotion? They do it with using averaging and pyramiding so they can be able to built up building blocks and they book profit slowly by creating traps, retail sees buy signal and buys so they sell and price moves filling up order placed by retail trader. Once institutional trader enter in a trade then they keep waiting to create traps for retails which can be further studied by order blocks, liquidity, fair value gap and supply demand concepts. If they exit all their position in one time then every body will be disappointed and no one will come to trade so they create chart patterns to trap. Learning from this is that you should stop working with one time order and start practicing on multiple order based concepts of trading to reduce emotions. Again if market is your enemy then you need at least 10 chances to counter attack it and remember in one shot you cant win with the boss. Once you understand this your emotion problem may be 75% solved.


 
Rajesh Kumar Nait #:

Understand this scenario with any video game boss fight.

When the Boss hits the player, what he will do? Cry due to emotion or step back, protect and prepare for next kick to boss?

Same rule applies to overcome emotion

1. High leverage - If you do any kind of trading where leverage is involved, its hard to deal with emotion

2. Higher timeframe chart - When you trade higher timeframe chart, there is high probability of getting some time before attack as compared to lower timeframe, but in lower timeframe, a trader may do human errors and can not control emotion if such big candle occurs

3. Not using terminal for auto risk calculation : When a trader fails to calculate risk, or do it manually which is more prone to human errors, then its highly probable that it will difficult to win over emotions.

4. Not understanding how institutional makes money : Institutional traders trade with large orders, sometime 10000x of what a retail trader trades. Do you understand why they dont get emotion? They do it with using averaging and pyramiding so they can be able to built up building blocks and they book profit slowly by creating traps, retail sees buy signal and buys so they sell and price moves filling up order placed by retail trader. Once institutional trader enter in a trade then they keep waiting to create traps for retails which can be further studied by order blocks, liquidity, fair value gap and supply demand concepts. If they exit all their position in one time then every body will be disappointed and no one will come to trade so they create chart patterns to trap. Learning from this is that you should stop working with one time order and start practicing on multiple order based concepts of trading to reduce emotions. Again if market is your enemy then you need at least 10 chances to counter attack it and remember in one shot you cant win with the boss. Once you understand this your emotion problem may be 75% solved.


Interesting analogy 

 
Lorentzos Roussos #:

Interesting analogy 

thanks
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