Forex Psychology

Home Advanced Forex Education Forex Psychology
Trader's psychology is the main driver of the markets: Greed and Fear were the two main forces already signaled by Jesse Livermore as the main culprits of the traders' failure. In this section, we present the best education on psychology to help our readers master their minds and control emotions while trading. We will dissect the main tasks of trading, analyze the psychological elements of risking and how the mind behaves under situations of uncertainty. We present also techniques to control stress. A section will be dedicated to losses and how this element of the trading profession has its roots in psychology. Another section is dedicated to the development of discipline. Finally, we explain the process to make sound decisions.

Beliefs That Can Limit Our Forex Profits

In this article, I will try to expound on "Limiting Beliefs": what they are, why they appear, and how they affect us in Trading.

Alexander Elder and the Psychology of Markets

With the suggestive quote below, Alexander Elder begins his masterpiece, Trading for a Living. Elder, who studied psychiatry in the former Soviet Union, enlisted in a ship from which he fled risking his life and after being chased by his own companions arrived in New York in 1974, with 25 dollars in his pocket and no one to ask for help. He currently presides over Financial Trading Inc., a company mainly dedicated to providing training and is widely known for its contribution to the psychology of trading.

How to Neutralize Emotions When Trading

In this article, I will try to teach you to neutralize the emotions you may feel during the usual operation. Imagine, for example, that...

What You MUST Know About Psychology In the Financial Markets

It’s cloudy. Every minute, the number of clouds doubles, and in 100 minutes the sky will be covered. How many minutes will it take...

Weird Hobbies That’ll Make You Better at Forex

There are things that we do in our everyday lives that can actually make us better at trading. Some of them may be related,...

Maybe Emotions are Actually Good for Forex Trading?

In the last 20 years, advances in brain imaging technology and other methods of analysis of neurological activity have produced important advances that allow...

Five Reasons You Need to Stop Stressing About Forex

Forex can be stressful, it’s one of the things that are told to us over and over again especially when things are going the...

The Impact of Psychology On Cryptocurrency Trading

The cryptocurrency market does not follow the rules of technical and fundamental analysis. Only psychology works here. Who will be the strongest: institutional investors,...

Top 10 Forex Trading Psychological Mistakes

It is said that the personal psychological challenge constitutes 90% of the struggle to achieve consistent success as a forex trader. Can it be...

The Fundamentals of Mental Accounting in Forex Trading

The vast majority of agents involved in the financial markets know the term accounting. We also know the different categories within the generic concept: financial accounting, corporate accounting, analytical, management, banking, etc. However, what do we know about Mental Accounting? Have you ever wondered about the internal processes that our minds follow when we open or close a position? Why isn’t it easy for us to close a loss-making operation? Why do we rush to sell the winning trades, even knowing that they can have a favorable path to our position?

Psychology and Mathematics in Forex: Control and Calculations

Obsession with control is an exceptional feature in the animal world. Humans develop more or less complex systems to direct each and every facet...

Why Do We Sabotage Ourselves Emotionally in Trading?

We spend our entire childhood and adolescence learning to control and develop appropriate responses to our emotions. We learn from our teachers, from our...

The Forbidden Truth About Trading Mindsets as Revealed By An Old...

Thinking about forex trading in the right way is central to doing forex trading in the right way, yet it isn’t discussed nearly enough....

BEWARE: These Excuses Could Be Holding You Back from Dominating in...

If you search “forex trading” on any search engine, you’re going to find a lot of frequently asked questions from users that doubt trading...

Understand People and You’ll Understand the Markets

Every day the markets are more complex, more international, more liquid, with more people and robots operating in them. All this makes the current...

Mistakes and Fears of the Modern Trader (and How to Correct...

Probably a lot of you know how to drive. If you don’t drive, surely you can find some similar perceptive-motor technique that you have...

Forex Success: It’s All About the Winning Mindset

I have been wondering for some time now what role does our mind-brain play in trading? And I keep asking myself that because rivers...

How To Make Forex Trading Comfortable?

Comfort in trading has several aspects, one is when we have a good trading practice, a system, or a strategy, yet we cannot find...

Tapping Into Mind Power for Ultimate Forex Success

Becoming a successful forex trader can be attributed to many different things, from higher education to dedication, money and time invested, available resources, and...

Trading Psychology: How to Manage Your Forex Trading Fears

If you’re human, there’s no doubt that you’ve worried or felt anxious about things that affect your everyday life from time to time. This...

Transformation of the Trading World Through Jack Bogle ETFs

Mahatma Gandhi said that when you try to change the world first they don’t notice you, later they laugh at you, and then they...

If You Don’t Learn About the Pygmalion Effect Now, You’ll Hate...

The Pygmalion Effect (or Rosenthal Effect), named after the legendary namesake king of Cyprus and renowned sculptor who fell in love with a female...

Trading Psychology 101: A Complete Guide to Self-Actualization and Prosperity

When we start learning about trading, topics such as consistency and rules make it the last on our list, especially because, with the pace...

Why Conspiracy Theories in Forex Might Only be Half-Truths

A conspiracy is definitely one of the terms that arise a lot of pros and cons among people, depending on the way of their thinking and using their common sense and healthy logic and presumptions. The majority of the crowd get into the endless world of conspiracy theories once they start getting older and being disappointed with society, limited by life responsibilities, and faced with their own failures. By blaming someone else behind the curtain, the one who we actually cannot affect and who is pulling the triggers is one of the paths to enter the wide world of conspiracy theories. These people believe that there is always something suspicious going on behind the scene in every single fragment of their life, without actually being able to prove most of their beliefs. 

Achieve Total Forex Competence in These 4 Simple Stages

The “four stages of competence” psychology model was created by management trainer Martin Broadwell back in 1969. It is used to describe the different kinds of psychological states one goes through when progressing from incompetence to competence with a skill. While this widely popular psychological guideline can be applied to a variety of different skills, it is especially useful when describing what one goes through on the journey from a forex novice to a truly competent trader. Stay with us as we explain each of the four stages and how they apply to traders.  

The Supreme Discipline of the Forex Trader

Although the currency market is the largest market in the world, there are still many traders who have no idea how it works. So,...

Emotions and Success in Long Term Trading

Trading is emotional for most of its participants. Your own emotions added to the emotional side of the market will largely determine whether you...

Behavioral Finance: How Can it Help Us in Our Trading?

Due to recent developments at the global level, which led to "abnormal" behavior in the financial markets, I consider it very opportune to insist...

Seven Cognitive Biases that Can Impact a Trader

I’ve always liked to investigate cognitive biases. Not being aware of them, could directly ruin a trader’s career or simply prevent someone from being...

Trading Boredom and How to Deal with it

We’ve all experienced boredom from time to time, and in today’s day and age, the human race has spent a lot of resources developing...

What is the Most Dangerous Trading Emotion?

Trading psychology is a broad topic that focuses on the ways that emotions like fear, anxiety, anger, etc. can cause us to make altered...

Identifying and Harnessing Your Trading Strengths

The internet is filled with resources for traders, including articles, videos, and other mediums where experienced traders can share information and tips that will...

Regret: Is it Negatively Impacting your Trades?

Regret is a negative emotion that we’ve all experienced at some point in our lives. Something we wish we had said, a sinking feeling in our stomach after making a big purchase, a person that we wish we had asked out, and other mistakes that we feel we’ve made along the way. Sadly, many of us feel those first stings of regret as early as childhood and we continue to find things to regret about our life choices as time moves forward. This negative emotion comes in a lot of different shapes and sizes - and it can affect forex traders rather harshly. 

Avoid Psychological Mistakes that First-Time Traders Make

Psychology can affect one’s success as a trader in many ways, some of which may be more obvious than others. After all, forex traders...

Avoiding Burnout While Trading Forex

Forex trading can be stressful. Anyone that tells you otherwise just won’t have come across one of their bad patches yet. Every single time...

How to Approach Trading Changes Positively

Change, something that you either love or absolutely loathe. Whichever approach is relevant to you, you are going to need to embrace change in...

Dealing with Trader Frustrations

Frustration is a part of life, often it occurs when something we didn’t want to happen happens, or more work is created, frustration is...

Common Psychological Mistakes For Newbies

There are psychological mistakes that you can make at any time during your trading career, and many people do, even those that have been...

Dealing With the Stress of Forex Trading

Stress is a powerful emotion and it is not one that will shy away from forex traders or any other traders, in fact, it...

Positive Thinking = Positive Trading: The Power of Positivity

Staying positive can be difficult, especially when things are no longer going your way, and when trading in the markets, there are countless things...

Is It Important that You Actually Enjoy Forex Trading?

It’s a very simple question as to whether you enjoy trading or not, however even some of the simplest questions can be quite hard...

Should You Trust Your Instincts While Trading?

Your instincts are powerful things, they can take hold of us when we are doing pretty much anything in life, out in the wild,...

Preparing Yourself Mentally For Full-Time Forex Trading

Becoming a full-time trader is something that a lot of people aim for, it is the main goal for a lot of people, to get rid of that 9-5 job, to get out from under that boss from hell, but a lot of people who eat it, are not fully prepared for what is actually involved in it. Going full time is a huge step and it can put you under a lot of pressure, the pressure that you didn't have as a part-time trader due to having other sources of income or not needing to rely on it. 

Psychological Differences Between Demo and Live Trading

When you start out trading, often the first bit of advice that is given to you is to use a demo account, keep using...

Why Dedication is So Important For Forex Traders

If you have been looking over the internet, at the various social meiosis sites, forums, and trading communities, you would have seen some of...

How Greed Can Both Help and Hinder Your Trading

Forex trading is often referred to as an emotional rollercoaster ride due to the ups and downs of various emotions that humans can experience...

How to Avoid Analysis Paralysis

Analysis paralysis is a common anxiety experienced by many forex traders. Traders need to act quickly, but those suffering from this condition tend to...

5 Questions Every Forex Trader Should Ask Themselves

Each and every Forex trader needs to not only create a trading plan and select his or her strategies but also need to prepare...

Is Forex Trading Addictive?

Trading addiction is a real problem, not unlike alcoholism or gambling addictions. Trading strongly stimulates the reward center in one’s brain and we become...

How to Behave Like a True Trading Legend

Whenever you think of the most successful traders in the world, who comes to mind? Here are a few quick examples of noteworthy traders...