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Forex Trading Psychology

| Saturday, January 2, 2010 |

While learning a lot about market analysis and money management is an obvious and necessary step to be a successful Forex traders, you also need to master your emotions to keep your trading performance under strict control of mind and intuition. Controlling your emotions in Forex trading is often a balancing between greed and cautiousness. Almost any known psychology practices and techniques can work for Forex traders to help them keep to their trading strategies rather to their spontaneous emotions. Problems you'll have to deal while being aprofessional Forex trader:

  • Your greed
  • Overtrading
  • Lack of discipline
  • Lack of confidence
  • Blind following others' forecasts

These are very professional books on psychology written specially for financial traders:

  • Calming The Mind So That Body Can Perform
  • Emotion Free Trading
  • The Miracle of Discipline

Forex Technical Analysis

Technical analysis is the process of market analysis that relies only on market data numbers - quotes, charts, simple and complex indicators, volume of supply and demand, past market data, etc. The main idea behind Forex technical analysis is the postulate of functional dependence of the future market technical data on the past market technical data. As well as with fundamental analysis, technical analysis is believed to be self-sufficient and you can use only it to successfully trade Forex. In practice, both analysis methods are used. Recommended e-books on Forex fundamental analysis are:


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