Are you trading a little bit too much?Johannes Röll 18 / March / 20 Visitors: 72
Are you trading a little bit too much?
The traders who are especially trading on a short timeframe often make the same mistake - trade too much.
It is too much emotions
In this case the behavior of the trader is similar to behavior of the hazardous player, and in any way not the person who is adjusted to earn money. Certainly, any behavior model is personally your choice. But you have to understand that if Forex for you - an opportunity to entertain yourself, to cause in yourself strong emotions, then soon arises dependence as from casino, and it is necessary to forget about profit. In case all of you are adjusted to work and earn on Forex - think of change of the purposes and motives and focus on efficiency of the trade.
Indistinct trade strategy
If at the trader is absent a certain framework of the trading system - any new wave in the market will tempt him. In such state the trader, not especially thinking, enters transactions of buy during falling of a trend down and vice versa. Later the notion of compulsion comes that the market monitors its actions and specially goes against.
It is sure, the similar situation will seem much to the acquaintance. The most important task for you is a creation of the thought-over trade strategy which will help you to define possibilities of an entrance to the market.
Trading with boredom
When the market quiet, the trader spends much time at the monitor, expectation of the movement. At such moments the boredom with which some have difficulties creeps. Traders beginners often connect trading with strong emotions. As a result, without having coped with boredom, they begin to struggle with it by entry into non-profitable transactions.
Financial trouble time
Similar life situation - the most inopportune moment to be engaged in trading. In a condition of despair, a nervous stress trade on Forex will not make profit, you will be focused not on the trade and its quality, and on that, kind of to earn more money quicker. At first you need to get it together and to understand itself and with the expectations from the foreign exchange market. If you are not able to think soberly - find other way "settle down" the financial position better.
Beginners are enthusiasts
The trader the beginner is stout belief that, he should come only on the platform as profitable transactions right there will float to it in hands. The enthusiast is sure that he will earn the first million already soon. Certainly, in this feeling there are advantages - it is much better, than not to believe in itself and in the forces. But, on the other hand, it involves too strong involvement and hazardous desire to snip off the biggest piece of pie. Because of it the beginner opens all new and new positions, especially without thinking of whether they are really profitable. And of listening to the trade strategy it is not a question at all.
Enthusiasm - good quality, but it is worth directing it to improvement of the trading system and your personal rules of trading. Only then you will be able to operate this feeling, and not vice versa.
When patience on an outcome
To all of us sometimes difficult it is allowed to control the emotions and to be tolerant. But in trading tolerance - one of key indicators of success. If you have not enough patience - you begin to see opportunities where they are absent at all, and to enter transactions which, on a result, nullify your depot.
You study patience. Possibly, you need to work with the inner world, it is better to understand himself in order that it was easier to get rid of feeling of impatience.
Trading for revenge
Such desire comes when money is lost on the positions opened accidentally or after commission of rash actions. Often the trader (especially the beginner) begins to blame the market for the failure, and was filled with desire to revenge it, to recoup, show "who in the house the owner".
First, if you lost a lot of money at once - you need to take a break in trade and to be restored, first of all, psychologically. Secondly further to avoid such state, you have to understand that Forex is your relative, the friend or the enemy. It not the one who wishes well to you or is angry. Forex is a system which needs to be followed if you want to earn on it. If you work with real, reliable Forex broker, but not with Kitchen, responsibility for transactions lies only on your shoulders, and there is nobody to revenge here. It is only necessary to stop and think, what are you doing not so and to consider once again the trade strategy.
In a condition of fatigue the brain cannot function as productively, as in usual time. Without the due level of energy you will not be able qualitatively to control yourself. And self-checking is on the first place during trade on Forex. After it there is a trade strategy to which you purely physically will not be able to listen tired. Your obscured brain will not make for you profit, it precisely. Therefore listen to the organism and give it time for restoration.
Certainly, sometimes there are situations when frequent trade comes true. At the moment of high volatility, for example, in the market it is possible to find more opportunities for an entrance, than in usual time. But in other situations you have to operate yourself, the emotions and impatience. And not to enter the market when you feel too strong inflow of emotions and passion.
Johannes Röll was born 1978 in Brilon,Germany. Graduated RWTH Aachen University. Over the past ten years he worked as Head of the plastic card team, where he was mainly responsible for the development of the distribution, Head of sales Department and Financial Analyst,where he got experience in planning and support sales figures for branches. For the present he works as freelancer