Trading Psychology

DO NOT ignore this. Seriously! The defeat is in sight if you carelessly in trading ... .. There are several key factor in successful trading: PERSONAL TRADER
There are 6 of psychology that affect the individual in the deal:
It is interesting that many people love to put their savings and funds in the hands of others, accept the losses as easily blame others rather than be responsible for their own funds.
1. Take responsibility of your capital (though only 5 USD capital that you receive for free). The first step as an individual is to believe in yourself and your own abilities. One of the most startling discoveries when you start trading or have a stock market observation of how the experts very often make mistakes.

This is a real advocate of the belief that when you begin to understand that with a solid background and knowledge, discipline and determination that good trading plan will make you perform professional acts. You will be in a market that moves several times faster than other markets and with leverage, appreciation and loss mixed repeatedly. The best way to overcome the thought of using your own money and volume of transactions you will make is to forget about money and talk in terms of points.

So instead of counting your gains and losses in the factors of dollars, talk in terms of points of gains and losses. If you take this at a very early, it will feel the same if you trade a demo. When trading a demo account, most people do very well. They trade without fear. But when they deal with real money, even just a mini account, they suddenly find themselves dealing with the attitude in which they lost a lot of opportunities and collect a lot of losses. They easily lose their courage and enter into the fear and greed. This can happen also when you go from a mini account to a full account of the contract or its own trade to trade multiple contracts. Try and trade without any thought of how much money you may be profit or loss. Trade thinking right, no matter how many contracts you are trading, or even if you are trading a demo account.

2. Cut your losses quickly and let your profits run. This simple concept is one of the hardest concepts to be implemented and this led to the death for most traders. Most traders violate their predetermined plan and take advantage of them before reaching their profit target because they feel uncomfortable sitting in a favorable position. These same people will easily sit on losing positions, allowing the market to move against them for hundreds of points in the hope that the market will come back. In addition, merchants that they stop orders have been exposed many times only to see the market return at their will, once they come out, they quickly move the stop from their trade with the belief that this will always be the case. Stop command is held to be subject to, and to stop you from losses exceed the amount specified in advance! The mistaken belief is that each transaction should be profitable.

If you have a profit 3 out of 6 transactions then you have to do well. How do you make money with only half of your trades being winners? You simply allow your profits on the winners to run and make sure that your losses are minimal. Another good strategy is to move the stop loss (points at which the transaction will be sold if it goes the wrong way) behind the trade to a level where a recall can be accommodated but a reversal will be locked at least gain a slight advantage.

3. Discipline Trade with a disciplined planning. The problem with many traders is that they take shopping more seriously than trading. The average shopper would not spend $ 400 without serious research and examination of products that would be purchased, as well as the average trader would make a trade with ease burden him $ 400 based on less than "feelings" or "alleged". Make sure that you have a plan before you start trading. The plan must include stop and limit levels for the transaction, the same as your analysis should include the underside of the expected well above the expected side.

4. Never Too much information, like many other endeavors, it is important to keep your trading simple. Many traders start with a simple and successful strategy, but find themselves trying to cut and change to find a better system. They also allow themselves to be influenced by other opinions and too many fundamentals. Stock market trading is usually similar in this regard. Good training is to teach a child or adolescent is a simple trading strategy or design rules to follow and allow them to trade a demo account. Many traders who have done this have been surprised that their children can enter into transactions with good, consistent, and often with spectacular results.
The lesson is that they do not deviate from the rules that exist and are not affected by the media or fundamentals. Many traders do not pay attention to fundamentals at all and succeed in the deal. The rule here is to keep it simple, do not allow yourself to become confused with too much information and if you're unsure or are not in a good emotion in the mind, do not trade.

5. Do not marry your trades. The reason trading with a plan is very important because most objective analysis is done before the trade is executed. Once a trader is in a position, they tend to analyze the different markets in the "hope" that the market will move in the desired direction rather than an objective vision of the changing factors that may be turned against your original analysis. This is particularly an actual loss.

With a losing position tend to marry their position, which causes them to ignore the fact that all signs point towards continued losses. Do not trade, even more so with the expectation that the market will turn in your favor. This will only accelerate your losses.

6. Do not bet on this field. Do not overdo the transaction. One of the most common mistakes that traders make is leveraging their account too high by trading much larger sizes than they ought to balance their trade wisely. Leverage is a double-edged sword. Just because one lot (100,000 units) of currency only requires $ 1000 as a minimum margin deposit, it does not mean that if a trader with $ 5,000 in the account should be able to trade 5 lots. One lot is $ 100,000 and should be treated as a $ 100,000 investment and not put $ 1000 as a limitation.

Most traders analyze the charts correctly and place sensible trades, yet they tend to over leverage themselves. As konskuensinya, they are often forced to exit a position at the wrong time. The best rule is to trade with 1-10 leverage or never use your balance more than 5 at any given time. Trading currencies is not easy. (If easy, everyone would be a millionaire!)