First, what is Forex: the Forex or foreign exchange market is the largest financial market in the world, with a volume of more than $1.5 trillion daily currency business.? Unlike other financial markets, the Forex market has no physical location, there is no central Exchange. It operates through an electronic network of banks, corporations and individuals for Forex trading for one another.
Mind games are defined
Mind games are a type of social interaction where participants try to break his head one to another. The concept is the most widely used colloquially to refer to misleading, unclear or Machiavellian situations. However, some mental games are described by the psychology of transactional analysis.
When it comes to trading on the Forex market, winning is a matter of the mind rather than mind over matter. Any trader who’s been in the game for any length of time will tell you that psychology has a lot to do with both your own performance on the trading floor and with the way that the market is moving. Playing a winning hand depends on knowing your own mind – and understanding the way that moves the market psychology.
The study of the psychology of the market is nothing new
No need to be a genius to understand that any scenario that rides and falls in the decisions taken by the people will be strongly influenced by the minds of the people. However, few people take into account all the different levels of mental games that motivate the market. Holding the eye in the form in that influences the psychology of others (including the psychology of the masses of the people using the currency on a daily basis) but forget to understand what moves you, you’ll end up hurting their own position.
Best Forex coaches will tell you that until really can become a successful trader, you have to know yourself and the triggers that influence him. Knowing it will help to overcome them or use them. Are you saying “Huh?”? Believe me, I understand it. I felt it the first time that someone tried to explain how the mind games we play with ourselves influence operations and the decisions we make. Let’s split it down into more manageable pieces for you.
Anything that involves gain or lose large sums of money becomes a burden. It is ok. You’ve heard that the bag is a mathematical game. Connect the correct numbers, make the correct calculations and come out ahead. Why is that so many traders end up on the losing side of the market it? After all, everyone has access to the same numbers, the same data, the same information, whether it’s math, there is only one right answer, right?
The answer lies in the interpretation
The numbers do not lie, but it lies your mind. Their hopes and fears can make you see things that are not there. When you invest in a currency, you are investing more than money–you make an emotional investment. Be ‘right’ becomes something important. Be ‘bad’ not only will cost you money to be dominated by their emotions, it will cost you pride. Why if you leave that loser stroll in the hope that it will recover? It is that little thing inside your head that says: “damn! I know I am right on this!”
For most people, be right is more important than making money
Here’s the deal. How to make real money in the Forex market is quickly cut losses and let profits. In order to do that, you have to accept that some of its operations will lose, cut them loose and switch to another trade. We must accept that the selection of a loser is not an indication of its own value, which is not a reflection of who you are. It is simply a waste, and the best way to deal with this is to stop losing money for passing and really move forward. Passing means you don’t keep a cumulative total of many losses has been because it is the way to halt. This brings us to the next point:
Lose the merchant always looks like a failure
Win merchant, the loss is seen as learning. Not long ago, my twelve-year-old son told me that until Thomas Edison invented the work the light bulb, invented 100 bulbs not working. But he does not give up because I knew that it was possible the creation of a source of light of electricity. He believed in his general theory, so when a design doesn’t work, he just knew that he had eliminated a possibility. Keep eliminating possibilities quite some time, and will finally find the possibility that works.
Winning traders see the loss in the same way. They have failed, they have learned something new about the manner in which they and the market operate. Winners merchants can look at the big picture playing on the small sand.
I guess that I said that last year I made 75 businesses that lost money and 25 who made money. In the eyes of the majority of the people, that a dealer would make me rather poor. You wrong me 75% of the time. But and if told you that my average loss of $1000, but my half a winning operating profit was $10,000? That means that I’ve lost $75,000 in trades, but I did $250,000, making my total profit $175,000. It is a numbers game enough of course, but how is it maintained in the trade when he is losing in trade after trade? Simple just remember that trade does or undoes a merchant. Focus on current trade, follow the triggers you’ve created, but define yourself by what really matters is the general register.
In a nutshell: it is not possible to keep the emotions out of the picture, but you can learn to control its decisions. Keep everything in perspective and realize that there are a lot of older guys who play this game and play to win…