How emotions affect our trading strategy in forex

[Liquescent]

Emotions blur your view and thinking. You tend to do what you expect because of your uncontrollable emotions. You even feel incapable of making the basic trading decisions and fail to stick to your trading plan.

 

[Belomancy]

Emotions are natural human tendencies that can be controlled. If you're struggling with managing emotions, don’t really know how they impact you as a trader, figure that out first. List your goals and plans and design some guidelines so that you stick to your plan.

 

[Lickspittle]

Emotions make a person feel attached to the money he is trading in forex. This can make the trader take decisions less than his utmost potential. Being attached to the money can cause an overwhelming amount of fear of loss. It can subsequently lead to overtrading and revenge-trading in order to compensate for the lost capital that can lead to further losses.

 

[Diagraphics]

Negative emotions block the ability to think in a rational way. Having extreme positive emotions is also not good. Traders must be able to control their emotions so that they will be able to manage their trades well. Otherwise, it will hinder the ability to make decisions.

 

[Laminary]

Traders' emotions cause them to make more mistakes. Such blunders ultimately result in sizable trading losses. Therefore, you should avoid letting your emotions influence your trading.

 

[Gastrology]

Emotions can backfire our trading. Emotions like fear makes us restrain from taking risks or trading with a decent amount of capital, which can lessen the amount of profit a person is capable of making. Emotions like anger and frustration lead us to revenge trading, and emotions like greed leads us to over-trading. Both of which can be unfavourable and lead to losses.
It is therefore very necessary to develop trading psychology. Developing your trading psychology will help the trader take decisions in a calm, composed, and wise logical mind.

 

[Cittosis]

If traders generally start viewing their emotions not as a barrier, but as a succulent towards earning profit by making better decisions, it will be a leap of faith and they can understand the market better. Emotions can help a trader, if utilised with knowledge and skill.

 

[Mudpuppy]

Managing our emotions is hard unless you make conscious efforts towards it. You won’t be able to make any progress as a trader if you lack emotional control in the first place. Trading decisions should not be driven by emotions. You must develop a professional approach towards trading to refrain from emotional trading.

 

[Petricolous]

Trading has a psychological aspect to it as we risk our money. This worries trades because they fear losing. But we all want to prevent it and earn maximum profits. Either to avoid losses or gain more profits, traders take decisions that are influenced by emotions, not based on facts.

 

[Ivo Zetticci]

But long-term traders avoid trading during that time. It’s important how you handle your trading so focus on it.

 

[Fardage]

Your trading performance may suffer if you are unable to regulate your emotions. It may cause you to overtrade, engage in vengeance trading, or become petrified by fear. That could result in you losing all of your investments and profits! Developing your trading psychology is absolutely necessary if you want to learn to manage your overpowering emotions and prevent them from negatively affecting your trade.

 

[moonchild]

Emotions can really cloud our judgement especially in Forex trading, this is the main reason those who are successful in demo trading fails when it come to live trading, because with demo there is no any tangible investment at stakes but when it comes real trading you get to see how traders will let their emotions push them into taking trades or increasing their lot size to make more profit which is totally against their trading plan and become detrimental to the account at whole because of this reason alone people say Forex is very hard.

One needs to learn how to stoic when it comes to forex trading, be indifferent about results, some trades are definitely going to be bad and some trades are going to win, your main goal is to cut your losses immediately, ruthlessly and let your winners run by making sure they align to higher time frame and make maximum profit anything short of this is, calling for trouble or falling for your emotions which equals bad decisions.

 

[saoussen5765]

Leverage provided by brokers is of different sizes, like some brokers provide 1:400, whereas some others provide 1:500. Eurotrader provides you flexibility in this regard, meaning here the leverage depends on the account type you select.

You need to be expert to play with these leverage while it is recommanded for a begineer to start even with 1:50 leverage but half of people lie and wants 1:500 leverage and ends by losing half of their assets.

 

[FXOchartist]

No doubt, emotion has high role during trades, mainly when traders working manual trading, emotion will more deeply involved, for this reason, some traders prefer to develop expert advisor to abandon emotion and running robot based logic, however trading using robot has own advantages and disadvantages.

As human nature we have emotion, however control emotion to prevent from own mistake is very important to keep trading on right track. How to control emotion we can build up a good mindset about loss trades, sometimes trader being angry because don't accept the risk.

 

[Electuary]

Emotions can play a scary role in forex trading. As forex is highly volatile with currency pairs behaving differently to different market conditions, a person needs to be careful. But when a person lets his emotions play a role in trading, the overwhelming amount of fear, anxiety, rage, and greed, block clear, logical thinking, and make a trader take wrong decisions. A trader who is experiencing dread may play it too safe, close winning trades sooner, and do nothing with their account. We might also choose not to close a losing trade, delaying the decision and risking a larger loss on the trade. We might choose not to execute a carefully considered trade.

 

[Numiinous]

Trading undoubtedly causes traders to experience strong emotions, whether they are winning or losing. Contrary to popular belief, trading decisions can be significantly influenced by powerful emotions. While many people feel that trading should be dispassionate and logical. In fact, some negative emotions can lead to detrimental behaviours. It is really important to keep emotions at bay else we can lose our money.

 

[ShyCube]

If one doesn’t know how to control emotions, whether impulsive or non impulsive, it can create unnecessary issues that don’t need to occur in the first place. Hence, emotions are a natural part of being human and traders should learn how to use it to their advantage. By gaining knowledge, they increase confidence and learn how to think practically, this helps in setting realistic goals. Traders need to focus on their plan and execution. Profit is earned, over time.

 

[Zygomatic]

Emotions can become a barrier in the way of trading forex profitably. Forex trading requires traders to make logical decisions quickly because of the market volatility. Having attachments with the money you are risking, will cause fear, anxiety, greed, and anger to cloud your mind. As a result, you will not be able to trade forex professionally and efficiently.

 

[Archetype]

Emotions in forex trading can ruin your trades so it's always better to say no to emotions and can lead you to make wrong trading decisions.

 

[Suba]

The main key in forex trading is that we must be able to avoid making decisions based on emotions, we must admit that the high volatility of the forex market will make us very easy to be influenced by emotions. If you trade forex that is influenced by will and emotions it will drain your trading account. So basically we have to follow a strategy made based on market price movements. We need to make a planned trading system and implement the system and it will also provide instructions when we have to enter the market, how many pips we will get if we make a profit or how many pips if we lose.