The Psychology of Trading online
Forex Market – The Psychology of Trading online
Why Forex Traders Fail?
The Foreign Exchange market is the largest and most liquid financial market
world. However, the presence of large international banks (Mega
Banks), financial institutions of great prestige and a number of entities
important investment for many people do not reflect the magnitude of what
this market represents.
Trading is not a matter of “Trying” is a matter of “commitment”
and training …
It is true that 90% of new Trader’s lose all their money in Forex?
A reality sustained by the popular statistics tell us that
Unfortunately 90% of new investors (Trader’s) who “try”
venture into the Forex market, fail to have success on their
financial expectations and even more unfortunate it is that they end up losing everything
capital within weeks or even hours.
In this article I would like to address very seriously the issue of why it
so common for most people who “try” investing in Forex
They end up “losing” their money and what are the main causes that lead
This situation, while another select group of Trader’s enjoy success
Awesomely of the benefits of this market, accumulating large
fortunes of money and reaching unprecedented economic levels and
The main causes for the initial investors Forex Market
can lose their money, in my opinion and from my perspective, is not a
questions arising unique to the foreign exchange market are issues
and reasons that apply to any type of enterprise, when a person has
I decided to start …
• Try with a sense of opportunism
The first reason that a lot of weight from my very personal point of view is
thanks to technology and even more so, to the facilities today we
Internet provides, the Forex market has become extremely accessible
virtually anyone who is determined to invest in Forex. Without
But the lack of information, ignorance and often poor
communication, the new investor will have the Forex market as “the option”
to become a millionaire overnight “playing bet”
assumptions about the price of foreign exchange. DO NOT!
Naturally, anyone who assumes that with great ease and simplicity will
achieve “make money” in the overnight “playing graphic” and
I making their “bets”, coupled with the ease of “install” any
Trading platform on your PC, in literally five minutes, the task is given
start trading freely in an extremely complex and high market
The Forex market like any other financial market, business or work
background having a commercial sense, requires preparation,
especially understanding and learning.
truly be a Trader, there is no question of sitting in front of a PC with two
or three screens and engage “play money”. Becoming a Trader
genuine success is a process that requires a lot of discipline, study,
preparation and effort. It is not a matter of improvisation, is a matter of
preparation like any other profession, trade or work we want to make
with skill and efficiency.
Hence, that “Trying” is not a good deal, nor in the Forex Market or
any other activity, those who “try” always end up losing. This is
something that requires a strong personal commitment, dedication, discipline and
two milligrams of effort.
When we begin to see results, then we know we are on the way
correct and there, everything will be to perfect the techniques and everything learned
to optimize our earnings and profits.
• Lack of Discipline to operate the Trading
New investors regularly fall into the biggest mistake you can make
in the investment world (not exclusive only Foreign Exchange Market), and
this is not to have an intelligent investment strategy. risk
too much of your money in one placement and not getting results,
banal begin to take decisions without a logical support for the market,
which naturally leads to the last straw.
This lack of discipline in Forex Trading is perhaps the problem more
Common facing both novices and Trader’s professionals. Because
these problems, most Forex Trader’s end for allowing
emotions control their trading decisions.
To achieve become a successful trader in the trading business
currency first requires us to develop patience and confidence. The
we acquire patience understanding that this is a process that goes us
take some time as we go dabbling in the market and
confidently we get as we get to be increasingly prepared and
Trading able to exercise properly, with full knowledge
To the extent that we can start operating under controlled conditions; by
such as a “Demo Account”, implement our investment strategies,
experience or endure minimal losses and understand why we were
thus, it will be to the extent that we can advance in knowledge.
Maintaining discipline Trading through the execution of orders on
basis of a plan and a well-built smart strategy is the only way
to enter that elusive 10% percent of Trader’s successful.
• Not having an Intelligent Investment Strategy
A good commander can not, nor should “try” to go to war without a
plan and strategy well supported. Any attempt by a Trader
navigating the waters of Forex with fear and without an investment plan well
built undoubtedly will bring serious financial consequences.
Success in Forex Trading requires following a plan and a strategy
well supported investment, based on previous analysis and setting
clearly the risk management rules and the expected return of the
investment (ROI). As such, keeping a trading plan,
invariably will allow you to maximize the profitability of your operations.
• Failing to hone the skills of Trading (Demo Account)
Many Forex Trader’s initials, often jump to the opening of accounts
real before implementing their investment strategies in an “Account
Demo “. Consequently, entering the market with medium, without knowing the
collective consciousness of the market, with little experience in the operation of the
Trading platform with which they are operating and therefore are unable
to support the flow of the waters of the Foreign Exchange Market.
Success in Forex trading requires proper practice in a
demo account to develop discipline, consistency and capacity
to negotiate and studied under a previously established plan.
• Not having realistic expectations of Trading
Regardless of what all they say, the currency market is not a
scheme to get rich quick. Success in this business requires much
work and preparation, like success in any other business. Without
But most of the new Trader’s start market operations
under the understanding that the market will always be in your favor, Forzan the
natural conditions of price behavior leaving aside
this represents risks and ignoring the rules of money management. As
result, leave the Trading operations totally disappointed and far
expectations with which they most likely already started and no money.
Finally, a final recommendation; it is crucial to understand that the Market
Forex is not a ground to suppose Trader and begin to “try” or “test
luck “, is a task that requires good preparation, learning and
effort as any other work in which one chooses to highlight.
Also, it is very important to stay updated on new tools,
strategies, news and other events of the Forex Market. these aspects
are “key” factors if you really want to become a successful Trader
in this exciting Forex market.