When you start your forex training, you will learn a lot of things. You would get a detailed course on how to implement technical analysis, how to trade around forex news releases, and especially how to cope with the emotional chaos that forex trading can create.
While the first two aspects of forex training would be very important for you, they would come to naught if you do not know how to control your emotions. Controlling emotions is important because, without it, you would not be able to make the right decisions.
Knowing the kind of emotions you face and how they will affect your decisions is important. Identifying that your decision making process is compromised is the first step to fixing it. For this purpose, here are some emotions you can expect to see during your early forex trading days.
Most traders fresh out of their forex training have this tendency to follow what other more seasoned traders are doing in the market. This happens due to inexperience which leads to lack of confidence.
There is not a lot in taking the lead of more experienced traders when it comes to trading forex. The problem, however, arises when the novice trader does this too much.
Taking tips and hints from experienced individuals is good but it is important that you implement all that you learned in your forex training. This means analysing the market yourself and coming up with independent interpretations.
Lack of confidence can affect not only the way you see the market but also the way you see yourself. Lack of confidence would result in you hesitating at crucial moments despite evaluating the market in detail. This would see the opportunity slip away and you losing confidence.
The trick is to never hesitate and implement your forex training to the best of your abilities. This way, even if you make the wrong decision, you would come out of the trade with more experience. This would stand you in good stead in the long term.
Looking for More
While lack of confidence can be a problem, so can over confidence. Certain traders, after having done well during their forex training, feel that they know everything and go all out to get profits.
These individuals, in their quest to succeed, see opportunities where there are none. The result is too many losses too soon. Greed is good in forex trading but only so far as you can control it and still be objective. Unless you see a definitive opportunity, it is always better to hold back and practise risk management as per your forex training.
The Urge to Gamble
Forex trading may feel like gambling but it is actually all about reading trends and assessing risks. The main reason you took up forex training was so that you can learn how to read the market.
If you throw caution to the air and ignore everything you learned about being objective and interpreting the market during your forex training, then you are setting yourself up for a major fall.