Control Your Emotion is The Key in Forex Trading

March 11, 2009 by  
Filed under Forex Trading

Trading in Forex is not easy. Before entering, all FX traders think they will get rich very quickly and to 20.000 USD in one or 2 weeks. But starting their trade, they realize that this is not true, it is not easy to make money. Especially when working with silver. The Forex is a very tricky business. Many of us believe that there is a conspiracy planned by people who know what we think, what we do and do the opposite to steal our money. Often we think to the contrary, our decision (if I see that the market is going up then I’ll sell). Then we start looking for someone to help us do at least 200 or 300 pips per month. Most of us probably work with adviser who take our money and probably does not help us to make a decent profit. Many of us think to stop the trading of Forex. I rather think that most people do not leave so easily because we see a golden opportunity to have our own business and make a fortune.

Foreign currencies are an opportunity to make money and at the same time is an opportunity to lose our money. We can make a fortune if we knew how to handle the Forex. By cons, if we do not know how to control the Forex it will destroy us. That is why we must be stronger than him.

Moreover, if we do not know how to control it with our own hands, he will destroy us too. How, then, be stronger than this beast? Simply by learning, observing and practicing. The Forex market will not go anywhere. It will seek and will run forever. Watch how the experienced traders are now so good. Look at the charts and see the commonalities. Watch why the price changes direction. If you are the reason that influences currency, you have in your hands the first tool that will help you to control.

Every new thing you learn, try it on a demo account, see if it is valid and expand it. In this Forex article, I will help you find your way. This article offers Forex does not fish but teach you to fish. There is no conspiratorial theory in this area, no large or small people. We lose because we do not know, and the first thing we must do to become good traders is to admit that we do not know and that we must always learn.

In this article Forex, I’ll give you some clues. Then I’ll let you learn, observe and practice.

First, you must use forex fundamental analysis and techniques in conjunction, the two complement each other. So do not count on leaving the other side. The root is one of the reasons that influence the market. If you’re in a long trade and suddenly your currency collapsed, go and watch if a report exists. Then look at what is expected and what the data. After that, compare that data to your chart and you have your first tool that lets you control your business.

Secondly, in my eyes, all technical indicators have not helped me at all. I tried all combinations. Nothing worked. The indicators describe the market situation but do not give information on the following direction. I read an article Forex someone who describes his strategy in Forex trading. I was completely lost, he uses a combination of 12 indicators EMA340, SEMA890, EMA2900 etc … and inserting FIBONACCI. I was totally lost. Even if his strategy has 95% success, I will not use it because I can control the market by using simpler techniques. We do not need to look for indicators. Me, I use only one indicator Bollinger Band is the perfect weapon in my fight against the trading in Forex. Watch the Bollinger Band and see how it affects the currency. Focus on it and you read this article good Forex This will allow you to discover many things. You will then have your second tool.

Thirdly, suppose you’re on a long trade and suddenly without reason the price of trading crashed and there was no report. It just dropped. It’s weird. The strange things are those we do not understand. Observe your graphics, go back several hours or several days back, put a line of hollow point swing higher and you will see that there is no mystery. This line will be dug your resistance. If the price breaks, it will continue to rise, but go where and for how long? … Look closely and you will learn what I did. It does not take much. Just do what you can. This beast is not as fierce as that. The escape is your fourth tool. (Rpchost.com provides traiders very important tools with which they can trade with more details, check with Rpchost.com section of free Forex signal. You can access the free basic signal).

Fourth, what period should we use? It is for you to choose the appropriate time, H1, H4, D1 … I do not know, compare charts and see the appropriate period. The period is important. When you find you have your fourth tool. (Traders can access the calendar section of the site’s World Economic Rpchost.com. It is a great tool that helps traders identify and confirm their trades when an economic report appears.

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