| Emotional forex traders will be tempted to chase bad | | | | the Forex market. |
| money with good, and subject themselves to even | | | | Mind over matter |
| greater losses. | | | | Norman Vincent Peale, Robert Schuller and others |
| Get a Grip | | | | have written volumes on the power of positive thinking. |
| "The sign of an intelligent people is their ability to control | | | | Every single champion who has ever perched atop |
| their emotions by the application of reason" ~Marya | | | | the pinnacle of his profession first visualized himself |
| Mannesforex trading is not for the faint of heart, nor is | | | | herself doing so. Visualize success. |
| it for those who are controlled by emotion. Certainly, it | | | | A good trading system is vital, but you have to believe |
| is an emotional thing to engage in an activity of risk | | | | in it - and in yourself - in order for it to bring you the |
| and reward with your money. Human nature dictates | | | | success you desire. Confident traders are successful |
| that when you put your heart into something as vital | | | | traders. |
| as your financial portfolio. However, a Foreign | | | | Here are some steps to take to avoid the traps of |
| Exchange trader cannot afford to wear his heart on | | | | emotional trading and establish yourself as a |
| his sleeve. | | | | successful Forex trader: |
| This isn't a heart matter; it's a head thing. Let your | | | | 1. Educate yourself. Someone has said, "The |
| heart rule in romantic affairs, but use your head when | | | | woodsman never wastes his time sharpening his axe." |
| you are trading currencies. If you do not use your | | | | Read that statement carefully, for it is not saying a |
| head, you may well lose your behind! | | | | smart woodsman just grabs an axe and runs to the |
| Every successful Forex trader develops, or borrows, | | | | nearest tree. Instead, it is declaring that the time spent |
| or borrows and modifies a system. That system is | | | | sharpening the axe, is time well spent. Never stop |
| based on facts, observed trends, and expected | | | | learning from those who have proven themselves |
| market behaviors. Your system will guide you, | | | | successful trading currencies. |
| informing you when to get into a trade, and when to | | | | 2. Establish your system. Take the time to develop the |
| get out. | | | | system that works for you. Test it, prove it, refine |
| Fear and Greed: Extremes that kill | | | | it…and use it. |
| When you lose on a trade - and if you trade, you will | | | | 3. Embrace your losses. That's right! Every experience |
| lose on occasion -, it takes a great deal of | | | | is a good experience when you keep it in perspective. |
| self-discipline to get out while the getting is good. | | | | 4. Eliminate emotions. Keep greed and fear out of the |
| Emotional traders will be tempted to chase bad money | | | | mix. |
| with good, and subject themselves to even greater | | | | 5. Envision success. See yourself as a successful |
| losses. Greed often compels the emotional trader to | | | | Forex trader. |
| try to recoup every lost dime. | | | | There are plenty of times in life that call for an |
| The other side of the Forex coin is the need to stick | | | | emotional response: a marriage proposal, for instance. |
| with a good trade and riding it to its full potential. Fear | | | | Or the funeral of a loved one. Or when your favorite |
| will cause the emotional trader to bail on a deal | | | | team wins the championship. Those are all fine times |
| prematurely. You have to be guided instead by your | | | | to let your emotions take the wheel. The Forex |
| system. Know how many pips you are risking and | | | | Market, however, is not a good place to do it. Once |
| how many you stand to gain. Keep your risk and | | | | you have managed to control your emotions and |
| reward in balance. | | | | make informed, intelligent trades, you will have plenty of |
| Greed and fear are two very different motivators, but | | | | reason to celebrate later. |
| they each have the same result: they wreak havoc on | | | | Happy trading! |