Chinese ancient master of war SUN Tzu had realized the importance of psychological factors on war as early as 2500 years ago for it decides the success of war. Nowadays, forex traders are aware of the importance of psychological factors on forex trading. forex market is like an arena, forex traders have to keep composed and placid in order to succeed in forex trading. So how to keep composed and placid when faced with complex market or huge potential profits or losses? I hereby summarize the psychological factors impact on forex trading and the method to overcome them as follows:
1. Follow suit blindly or “herd behavior”
It is not rare that many investors who are not clear about the forex trading market follow others to invest or to sell forex blindly, which is called “herd behavior”. Follow suit blindly may lead to imbalance of the forex market and forex traders are bound to lose money consequently in forex trading. Then how to avoid “herd behavior” in forex trading? The most important thing is watching instead of making haste to follow others. While watching, traders get enough time to think about the market situation thoroughly.
2. Hesitation
Forex market fluctuates time to time and chances slips away anytime. The most terrible thing in forex trading is hesitation. If forex traders have already analyzed the market thoroughly and made up mind to buy or sell, they should not wait and see because chances never wait for anybody. Being decisive and seizing chances in order not to be regretful for losing chances in forex trading.
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http://www.ikonfx.com/forexblog/psychological-factors-influence-forex-trading-and-the-way-to-overcome-for-forex-beginners/
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