Learning Psychology In Forex Trading

Learning Forex: Trading is like an art that involves emotion. Perhaps you are someone who has a high IQ, but if you can not control your emotions will come to fruition mere useless. This may happen where you can not be as successful trader IQ but a mature standard in controlling his emotions.
Lots of traders fail because of this psychological factor. For that there are some tips that hopefully can be useful for the survival of your trading.

 - 3M's of successful trading: Mind, Method, and Money
    All three must be harmonious and balanced. Mind is closely related to psychological factors such as emotions, it involves the application of risk management. Methods relating to strategies, trading systems and analysis. Money? Hmm ... which might be trading without enough money?
    Imagine if you have much money, but in your trading analysis ignores especially risk management. Or if you have a good trading system but no funds to run it.
    Useless right?

- Plan your trade, trade your plan
    Yes, it is true. Plan everything. To be a successful trader, the first rule is that we must obey our own trading plan. The key is discipline. If a trading plan we said we had to get out of the market, do it. There should be no bargaining. Violate our own trading plan is the beginning of failure in trading.

- Fear is nothing, act is everything
    Fear is a natural and humane. But excessive fear to implement our trading system actually prevents us to get profit opportunities.
    If a loss how? No one is willing to lose. But remember that the risk is part and parcel of the business. Overcome your fears of the risk by applying risk management and risk to reward ratio is good. We have the knowledge, why not apply?

- Do not be greedy
    Do not be greedy! If our profit target has been reached, you should immediately exit the market. Often traders get caught up in the movement of the price of being too eager to catch "big fish". For example, when the profit target has been reached and the position is closed, the price is still forward movement. Had it not been closed positions, the profit generated should be larger. Finally trader was trying to follow the movement of the market with the open position again in a hurry.
    It helps us calm down after closing our position, whether profit or loss, so the decision is not a decision we take hasty and emotional.

- Do not bet the farm
    Do not bet all your funds in the transaction. indeed if the 'betting' the bigger, the greater the advantage in this. But this also means that the risk is even greater the. Stay based on the trading plan and money management of your plan. Remember that violations of the trading plan is a failure in the early trading.
    Cut your losses early, let your profits run Do not reversed. Immediately dispose of your losses to a minimum, and let your profits continued to run toward the target. Lots of traders do the exact opposite. They can survive by allowing losing positions to hundreds of pips, but when the new benefit only a few pips own confusion want to immediately close the position. Do not do things like this!

- Intuition: friend or foe?
    Intuition was friend or foe? It's an interesting question.
    Someone asked, "May I use instinct in trading?"
    I distinguish between "instinct" and "intuition". Instinct that comes naturally, without any learning process. For example, bees can know how to create a strong hive without studying architecture. Now, if the "intuition" is obtained through learning and experience. For example, those of us who are accustomed to drive, knew exactly when we have to step on the clutch, changing gears, put pressure on the gas pedal, how much is needed to turn the corner, even sudden braking in emergency situations.

    In trading, the more believable is intuition rather than instinct. Intuition is a trader formed from years of experience to observe and recognize the price movement. Sometimes he could know where prices will move just a cursory look at the graph. However, it is advisable not only rely on intuition without constituted by an objective analysis that support.
Such tips Psychology In Trading, may be useful for you.