In forex trading, having emotions will lose money? So if the trade is no longer emotional, is it a win or not? What is the relationship between emotions and money in forex trading? This article will share about this.
You must have heard the saying "emotion is the enemy of success". Although, in some other fields, such as art, it seems wrong. But, strangely enough, this is absolutely true in forex trading.
First, let's try to list emotional states when trading forex:
- Fun: When winning 1 trade.
- Sadness: When losing 1 trade order.
- Excitement: When winning a series of many trading orders continuously.
- Boredom: When losing continuously a series of many trading orders.
- Confused: When winning and then losing, losing and winning again, alternating. Or when the trading system gives conflicting results, when the methodological orientation is lost.
- Desperate: When losing continuously for a long time, can not find a solution to overcome, feel that forex seems too difficult, can not win this market.
- Hope: When "turning defeat into victory", or when finding a better method to trade, creating positive results.
- ... and many more emotional states.
So, what does emotion have to do with trading results?
Really relevant !
Emotions - or moods of traders will affect the psychological state when trading, thereby affecting trading results. Although the trading method is unique, the results produced at different times will not be the same, and largely due to the emotional factor of the trader.
If you can gradually become "emotionless" when trading forex, then you will have trading decisions based solely on objective factors, belonging to the signals emitted by the trading system (technical indicators, market data, price patterns, price action,...), then your chances of winning will be huge. However, there are very few traders who do this, because we are human, we have emotions, and that is the biggest weakness that harms us, in forex trading.
Come to think of it, you've heard about crowd psychology in the forex market, or in the financial-stock market, right?
And look at the statistics, up to 95% of investors in the market lose, and only about 5% of investors succeed (the number is really small).
So, if you want to separate yourself from the crowd, if you want to join the few successful traders, you have to be truly different from the crowd. The main solution is to learn and continuously practice to become an "emotionless" trader.
Read more about the article "psychology in forex trading" shared by CaPhiLe.Com, here: https://www.caphile.com/2022/11/forex-trading-psychology.html.
If you have read this far, you will have your own answer to the title of the article, right: Emotions and Money - Which do you prefer? These 2 elements you can only choose 1, but not both. In other words, it conflicts with each other. And once you've chosen money, then forget about emotions.
If you are having problems in forex trading, read this article carefully, and try it for a while, I believe your trading results will be much more positive. Because I have experienced and learned it myself after nearly 10 years of trading in the forex market. And this sharing is very sincere, hope that readers will get many useful values after watching it.
See you in the next articles, please share the article if you find it interesting. Thank you very much.
Best regards,
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