Mostly the flow of emotion to a particular situation is more out of past experience. For example in a sight of loss someone would take it easy if in past a trade was recovered and went in a profit as compared to someone whose losses couldn’t recover. Therefore the response to same situation could have a different emotions and feelings. One could react as if its normal and part and parcel of trading a trade having a loss which can / maybe recovered and other could feel let down based on past experience where funds were lost feel. There are high chances of people taking different decision to a same situation and what rules here is emotions.
One major emotion which tops my list based out of research is “Fear of Loss” or else universal known as “Fear of Failure”. This emotion is been ruling majority of the world not only in Forex trading but in day to day life when it comes to financial matters. It’s been deep rooted in sub-concisions mind wherein people generally are not conscious to it. The biggest irony is: majority of people don’t know this emotion is ruling them day in and day out every minute and every second.
One of the effective ways to overcome or rather control your emotions in Forex trading is by identifying one proven strategy which is consistently giving profits. Caution: No strategy in the world would give you 100% results; the point here is to identify a strategy which has 80% success rate. The strategy should always be implemented on a demo account at-least for two months to understand success rate. Never draw a conclusion by only trying out for few weeks; reason being is two months consistent profits generally would take into account lot of factors of the market such as fundamental, market trend, etc. This would help to understand how effective the strategy is during different scenario. Remember once an effective strategy is identified there are strong chances it would last forever or to a
longer extent which would fill in your equity balance tremendously.
Forex-review
Leave a comment