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Trading Psychology

Hi Traders,
Today is Saturday and there is no trading, but that won't stop me from sharing some pointers about trading.
First tip is your feelings have an immediate impact on your account equity.
What is that so? If you are sad, angry or even tired, it does affect your thinking skils and even make you take the opposite direction of what your system says. My tip is get some sleep, eat well and maybe have a walk. After a few hours only take a look at your chart and if there are any good setups, ta…
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The problem with switching strategies - why you still loose money

I talked to a guy recently. A guy, who's been loosing money trading for over 7 years. Can you imagine this? 7 years of loosing money. But he's not giving up. He found a new strategy when the old one failed. So I asked him:
Ok, so why was your old strategy bad?

And he replied:
Well, because i started loosing money.

It was his only response. And the only argument for 'bad strategy'. He did likewise several times... Here's the thing - every strategy and every method is going to loose money at so…
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FXRabbit avatar
FXRabbit 9 fév

Friend, I strongly encourage you to write this whole blog as an article in the Article Contest! Not only that I find it interesting but I also believe that by submitting it to this contest will make it useful for all the community members to get the chance to read it. Please use this link to create an article: https://www.dukascopy.com/fxcomm/fx-article-contest/

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Trader's Number 1 mistake

Good evening dukascopy contest traders,
I believe you guys spending a wonderful weekend with friends and family at ease of your home.
Its weekends so I won't analyse charts or anything during my resting day, but I have a good topic for you to read while you are free resting.
Have you ever had a temptation to trade against a trend after a one sided price movement? I believe you have, so do I. I think its related to Theory called GAMBLER'S FALLACY. I'll write a brief explanation what I understood…
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Part1. How to set smart trading goals?

If someone asks you: “What are your trading goals?” you will probably answer: “I want to make more money”. But it sounds like a desire and not a goal. Trading goals are steps you need to accomplish in order to achieve your desire. And successful accomplishment of your trading goals depends on how SMART you will set your goals.
Specific Trading Goals
If your trading goal is not specific, you will neither be able to focus on it nor take specific actions to achieve it as your efforts will become di…
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Stix avatar
Stix 15 aou

Habit in trading is the best, I feel. :)

MrSami avatar
MrSami 17 aou

treating trading this way is the approach I like.

isomere avatar
isomere 25 oct

Le sérieux et la Méthode!

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How to cope with trading stress

Have you ever experienced a trading stress? Have you ever been in a situation when you don’t know what to do or know what to do but don’t do it?
  • The first step in coping with trading stress is to know what to do. Knowledge comes from studying, analyzing and making decisions based on that analysis.

[list][/list]…
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Sharpshooter avatar

You're right, dear Stix). Happiness never hurts))

Stix avatar
Stix 17 aou

Sharpshooter I think happiness is a state of mind... You can have a love but forget to enjoy it. Trading was a monster to me... But I loved it all the way through. And now it's a bigger love, than when I started. Just a state of mind, my view. :)

Sharpshooter avatar

Stix, I would add that sometimes happiness - is the mood on the right way)

Stix avatar
Stix 17 aou

Sharpshooter Medically, that's true and I couldn't agree with you more. Happiness stimulates Endorphins. If we have Endorphins running around in us, we think and do happier things, which make us happier. And so it grows. I am maybe a bit ahead of my time, if I may, but I think that our happiness (Endorphins, Serotonin, Dopamine) is the first thing that we should think about in the morning. Then, as we smile at others during the day, everything is brighter... And so it grows ! Well, idealistic but let's see. :)

isomere avatar
isomere 25 oct

Oui, on peut généraliser à l'ensemble des situations de stress

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Do you have a trading stress?

During trading everyone experiences a number of emotions such as fear, greed, hope, anxiety, etc. All these emotions cause stress. There are 2 types of stress – positive and negative. Positive stress can help you develop, be stimulated to take important actions. But if the stress is too much so it exceeds your ability to cope, it can have a negative impact on your mental and physical health. Negative stress can be diagnosed through a variety of symptoms such as irritability, lack of confidence, …
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Stix avatar
Stix 15 aou

Always have the bills covered. You will think in the prefrontal cortex, otherwise. As I understand. :)

isomere avatar
isomere 25 oct

le backtest sérieux est la clé!

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Stages of emotions in trading

Traders enter the market with the intent to maximize gains and minimize losses. But most of them are not purely rational robots and emotions often cloud their decision-making process preventing them from acting in a rational manner.
Knowing you can never be 100% rational, you should try to understand the range of emotions you may experience and how it may affect your interactions with the market. Here are the stages of a psychological cycle of trading:
Optimism – It all starts with a positive ou…
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sammart1947 avatar

agree with you! Almost each trader passes through these stages...

Stix avatar
Stix 15 aou

Mostly, I think it is just a job. :)

isomere avatar
isomere 25 oct

Parfaitement juste!

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Emotions in trading: Boredom

With a progress in trading career, you start to feel that the daily routine of markets analysis and trades review no longer carries as much excitement as it was at the time you started out. You can find yourself bored with your monotonous trading routine especially when there are very little movements in the markets. You want to feel productive and constantly look for trading-related things to do. And that feeling of boredom should not be overlooked as it may cause overtrading that may end up in…
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Sharpshooter avatar

Бывает и так)

sammart1947 avatar

and very common among experienced traders.

Stix avatar
Stix 15 aou

Two monitors help... Am able to watch on the one and do other things on the second. :)

isomere avatar
isomere 25 oct

Mon ennemi)))

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Emotions in trading: Revenge

Many traders commonly enter revenge mode trading after a trade, which they were sure would be a success, but went wrong causing money loss especially if that loss was greater than what he could handle.
As they get angry, they may try to make up for the losses by jumping into the market again and they are likely to fail and have a greater loss than the previous one.
Here are the causes.
[list][/list]…
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sammart1947 avatar

anger and revenge are not good friends for traders.

Stix avatar
Stix 15 aou

I don't have anger in me... If it fails, the trade, then it failed. There are always pips. :)

isomere avatar
isomere 25 oct

Non, faut être dérangé pour faire ça!!!

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Emotions in trading: Euphoria

Winning in Forex is both pleasant and dangerous as after experiencing a series of winning trades or after a single large win some traders become euphoric and kill their trading account.
Here is a scenario of an euphoric behavior.
  1. You place a trade by following your strategy and close the position with a win that was to some extent lower than your ‘take profit’ point. Not bad!
  2. Then you plan and place another trade and close it at your Take Profit point. Great!
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Sharpshooter avatar

Особенно вреден, на мой взгляд пунтко 8."You want revenge. But stop or your account will get wiped out! "Но я это еще называю "обида" на рынок)) Сколько таких обид было. А потом баланс тю-тю( Стараюсь не "обижаться")

Elani avatar
Elani 14 aou

согласна, поэтому написала отдельный блог на эту тему =)

Sharpshooter avatar

Спасибо. Правильным курсом идете, Elani.) Много плезных подметок. Особенно для новичков) Правда, к сожалению, часто трейдеры любят учиться на своих ошибках((

Stix avatar
Stix 15 aou

I think it euphoria goes with time and pips. :)

isomere avatar
isomere 25 oct

Pire que la peur!

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