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.

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,...

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...

Important Questions Every Forex Trader Should Ask Themselves

Becoming a successful forex trader takes a lot of hard work and determination. It’s easy to get so caught up in things that we...

Self-Improvement Steps for the Fearful Forex Trader

Forex traders are no stranger to the rollercoaster ride of emotions that come along with trading, as many have experienced excitement, greed, anxiety, anger,...

The Inherent Dangers of Revenge Trading

Revenge trading – it’s one of the many things that can stop a successful trader dead in their tracks on the path to success...

Tips for Remaining Disciplined While Trading

Discipline is often listed as one of the most important traits that a successful forex trader should have. After all, without discipline, one is...

Changing Your Ways: How to Break Bad Trading Habits

In order to find out your bad trading habits, we need to have a trading journal set up and for it to be full...

How To Deal With The Pressures Of Trading

Stress and pressure is an unfortunate part of trading, and it is one of those things that is inevitable and impossible to avoid completely....

Keeping Your Confidence Level Up During A Slump

There will be times during your trading career when you go through a trading slump, it is inevitable and will happen to every single...

Losses When Trading Are Not Personal

Let’s get this out of the way straight away, the markets do not care about you, when you take a loss, they are not...

How To Get Your Trading Mojo Back

Your trading mojo can be a brittle thing, but what exactly does it mean, we have heard it in everyday life, someone has lost...

Are You Guilty of Trading Bias?

Biases can have an effect on anything in life, from the food you wat, the places you visit, and when we are looking at...

How to Successfully Avoid Trader’s Regret

Have you ever made a purchase and then instantly regretted it? Wondered why you just spent that money on whatever it is that you...

Forex Trading Psychology 101

A lot of trading comes down to your mind, you can have the perfect trade setup, but if you are not in the right...

Greed: The Most Dangerous Emotion to Feel While Trading

When just starting out, one of the many warnings that people seem to get is to not be greedy, in fact, a lot of...

Taking the Emotions Out Of Trading

Emotions can be some of the most powerful things that you can experience in life, they are what some would describe as the things...

The Pressures Of Forex Trading

Pressure, the incredibly strong feeling of dread or stress that can come over you when doing pretty much anything when there is something on the line. In regards to trading, that something is your account balance. This is even more apparent if you are currently trading as your full-time job and you are counting on it for paying things like your bills or to purchase your weekly shopping. Pressure can come from both within and from outside sources, so let's take a little look at the sort of things that can cause pressure and the effects that this can have on both you and your trading abilities.

Self-Motivation and Self-Discipline In Trading

Motivation and discipline, some incredibly important traits that you need to have in order to be a successful trader. You often hear that trading...

Chicken Run – Fear of Missing Out On a Trade

Every forex trader will at some point have to face a particular set of fears that will sometimes mean they fail to pull the...

Three Ways to Boost Your Trading Confidence

Trading is a difficult thing to do, well it's difficult to do well and to do it well consistently. There are a lot of...

Excuses That (Almost) All New Traders Make

If you look around the internet, you will find a lot of excuses out there about why someone may not be trading well or...

How to Cope With Trading Boredom

Trading can be an incredibly exciting thing, especially when you are first starting out and everything is brand new to you. Even for experienced...

Can Stress Be A Positive When Trading Forex?

You no doubt would have heard people tell you about how bad stress is in trading, how stress is one of the worst feelings...

Psychology That Will Blow Your Trading Account

Psychology is a major part of Forex trading, Forex comes with ups and downs and as a new trader, some of these downs can...

Take Responsibility For Your Trades!

Do you take responsibility for your trading? We know that you will when it goes the right way, your analysis went well, you knew...

Self-Calming Techniques for Forex Traders

Forex trading is known to cause a rollercoaster of emotions – from excitement and self-fulfillment, to anxiety and bitter disappointment, along with every other emotion in between. Sometimes, the best thing to do is to step away and take a break from trading until you can get your emotions under control. However, many traders don’t want to miss out on opportunities, so taking a break from trading might be difficult. One of the best ways to get yourself more level-headed is to figure out a self-calming technique that works for you. Some of these can be practiced while trading, others might require you to step away for a short time. Either way, these techniques can help clear your mind so that you can get back to trading. Here are some popular calming techniques:

The Dangers of Envious Trading

Have you ever seen a video, social media post, or anything else posted by someone who claims to be a successful forex trader? Often times, these posts show that those traders are living a luxurious lifestyle. You’re likely to see big beautiful homes, fast sports cars, photos from multiple vacations, expensive clothes, and other luxuries that these people are able to purchase. It’s easy to look at this and think that you want that for yourself; after all, there’s nothing wrong with being ambitious.

The Problem with Overconfidence in Trading

Confidence is usually thought of as a good emotion – if we are confident in ourselves, we feel reassured that we can do anything....

The Psychology Behind Fear in Forex Trading

Trading psychology studies the ways that one’s emotions can affect their trading habits. From excitement and greed to fear and anxiety, emotions can wreak...