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The Psychology in Forex Trading

6 min read
Forex trading

Think that you are currently in the market and together with you are a few hundred thousand traders. Also, think that what you are feeling and all the emotions that flow in your thinking is also being felt by others. The market experience has taught us to realize how most people think while operating in the markets so it is not very difficult to perceive the differences in behavior between the traders who earn and lose money in the market.

We all know that there are many Forex websites out there, for example, CMTrading that sell their indicator systems or their trading robots. Obviously, they want your product to be bought by all of us and as such make us believe that just buy the product and follow the map! In fact, things are not quite like this.

That being said if I tell you that just having a trading strategy to succeed in the markets is not telling you the truth! Success will depend to a large extent on your ability to control your mind and the way you think and react when you approach the market.

So why do so many traders lose money?

It is common to say that more than 90% of traders lose money and reality should not be far from these numbers.

But why, after all, do so many traders lose money? Most traders lose money because they simply have huge pressure on their shoulders to have to make money from Forex trading!

Most people come to Forex with the wrong view of this business. They arrive with totally unrealistic expectations and they think that they start to negotiate and soon they will leave their jobs, or that they can start with 500 Euros and that after three months they have in their account 50,000!

Another wise decision in Forex trading is to use a powerful trading platform such as MT4 having most powerful features.

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How to get and maintain a correct mind for Forex trading?

Certainly, for some, it will be more difficult than for others to try to get and maintain a correct mind for Forex trading. The trick here is to accept that trading is a game of odds and that anything, at any time, can happen, also accepting that it will inevitably have losing trades. It is up to the trader, for his own benefit, to become aware of this reality and work his mind to believe in these facts and then be able to apply them while operating in the market.

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