Forex Psychology

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. 

When you’re trading, you obviously have the goal of making money and being successful. Sometimes, emotions come into the picture that makes you fear losing money and being left behind. To deal with that fear of losing money, you might back out of a trade sooner than you should have or convince yourself not to enter trades at all. However, it affects you; you wind up losing money because you’ll miss the shots you don’t take every time. Regret is like anxiety and fear in the ways that it controls traders and forces them to rethink everything they planned on doing. Even with a solid trading strategy and good past results, one bad move can introduce regret that will put the crippling fear of failure into your brain. 

Let’s say that you just made a trading decision and you wound up losing some money. You based your decision to enter the trade off of solid evidence that was outlined by your trading plan, but things just didn’t go your way this time. Now, you start thinking of what you could have done differently. You think to yourself “Maybe I could have tightened my stop-loss” or “I knew that I shouldn’t have entered that trade in the first place”. You daydream about what could have happened if you had made a different decision.

In another scenario, you see a trade that you want to enter but negative thoughts start to creep into your head. You think to yourself “What if I lose money?” Even though there is evidence that supports entering the trade, you decide not to. Later, you see that you could have made money if you’d followed your instincts and you regret sitting out on the winning trade. 

If either of these scenarios sounds familiar, you’re dealing with regret. But you need to know that there’s no point beating yourself up over what could have been and what you did wrong. Instead, you need to use regret to your advantage and allow it to give you that extra kick of motivation you need. Think of things this way: if you’re the trader that is avoiding trades because you don’t want to lose money, you’re likely losing more money on the trades you don’t take than you would if you took them. If you enter a trade that goes against you, you should evaluate what happened and figure out what went wrong. Don’t daydream about what could have happened, figure out if you made a mistake and learn from it instead.

If you learn to take control of emotions like regret, you’ll come out with a better trader for it. There’s no point sitting around thinking of what you’ve done wrong when you could learn from it and move on. Likewise, daydreaming about a trading move you wish you had made won’t put more money in your pocket. You’re probably going to feel regretful when you lose money, but you simply need to learn to let the emotion evoke a healthy response instead of letting it turn into fear and anxiety. In the end, you have to learn to keep regret from controlling your life. Rather than regretting things you can’t change, you can make better decisions in the future.

Beginners Forex Education Forex Basics

Finding Your Personal Trading Style

An important part of trading and learning to trade is being able to find your own trading style. If you do not and instead try to simply copy someone else’s, you can run into a large number of issues that could set you back quite a long time and a lot of work. When people start out they normally see a style, try it and that is what they stick with, regardless of the fact that there are many other styles out there that may actually be more suitable for that trader. Without knowing that they are there, they carry on none the wiser. We are going to be looking at a few of the different trading styles that are available and who they are best suits for, so you can hopefully find the one that is right for you.

The first thing that we need to clarify is the difference between a trading style and a trading strategy, while they may sound pretty similar, they are actually quite different. The trading styles that are most known are day trading and swing trading, there are of course the two other main styles that are growing in popularity which are position trading and scalping. Trading style refers to the way in which you trade, or at what speed to make trades, a trading strategy is about how you make your trades, what you reply to enter and exit your trades, and the rules that you use. So while they sound the same, they do have very different meanings.

So let’s take a look at what some of the main different trading styles are, we can divide them up into two categories, long term styles, and short term styles. The long term styles would include swing trading and position trading while the short term styles would include day trading and scalping. 

Swing Trading

Swing trading is often considered as a part-time style. The style often has the trader open up a large or medium-sized trade and then leave it there for a considerable period of time, sometimes for days or even weeks. The main problem with this style and the reason why a  lot of people do not like it is the fact that a lot of brokers will add on some charges known as swap fees for holding trades overnight, this can add to the cost and depending on the pair and the broker it can be quite expensive. This is a style of trading that can be seen as a little more sensible for those traders who want to trade less frequently, or that do not necessarily have enough time to be constantly checking the markets and their trades. As with any style, risk management will be key to help prevent a trade from going way into the negatives once you have set it and walked away.

Position Trading

Position trading is kind of a more extreme version of swing trading, so with string trading, you are holding something for days or week, with position trading you can be holding it for months or even years. A position trader is not interested in small movements, instead, they are looking for some huge movements, the sort of movement that can make history. Traders using this trading style do not need to watch the markets much at all, instead, they need to have a belief that the markers will go up or down in the long run and so they let it do its thing rather than constantly monitoring it.

Day Trading

Day trading is often referred to as the opposite to swing trading, people who are using this style of trading will open up multiple positions throughout the day and will close them before the end of play each day. This style of trading will take a lot of dedication and can result in you being in front of the computer for extended periods of time. You are required to be quick to spot opportunities to take and it can often be quite hard to find times to do this as they can occur at any time during the day, easily missed when making some food or popping to the toilet. It is a very popular trading style and many people like it due to the ability to compound any profits in order to earn a little more each time.


Scalping is a more extreme version of day trading, scalpers can make a lot of trades per day, sometimes even in the hundreds. Every single movement in the market is an opportunity to make a trade and to make a little bit of money, they are not looking for big profits, they are looking for little bits at a time. It is a very intense style that takes a lot of concentration but if it is done well, it can be very profitable, and much like day trading, the profits can be reinvested in order to help increase future profits. This style of trading is growing in popularity, especially through the use of expert advisors and it is something that a lot of people are now starting to take notice of.

So those are the four primary styles of trading, but how do you know which one is right for you? The first thing that you need to do is to decide whether you want a long term or a short term style of trading. The problem is that it is not exactly an easy question to answer, as what may suit you one time may not suit you the next week. It is important that you get a little bit of experience with each of them and get an understanding of what is actually involved in them. You should also consider the requirements, the longer the trades for a style often means that they also require more capital in order to trade them, they are bigger trades being held for a long period of time and so require the money in the accounts to cover that.

Short term trading styles require a lot less patience, and less capital, the profits are also received a lot quicker and so can be compounded in order to increase the amount of profit or trades next time around. The trades are generally smaller in size so the account balance in the account does not need to be quite as high.

If you are an impatient trade that does not want to wait, then the shorter-term trades are best for you, if you have a lot of time on your hands then the shorter styles could again be a good choice for you. If you want to set and forget, then the longer-term styles would suit you a lot more. Remember to keep things simple though, something being more complicated or giving you more to do does not necessarily make it any better.

Having said all that, you should certainly try each style at least once, there may be one that you are certain you would not enjoy, but once you actually try it, it feels natural to you and is the one that you want to go for. It is hard to judge exactly how much time you will spend on each one, but you should feel straight away whether one could potentially be good for you or not, just ensure that you try them all. Some people swap between different styles depending on the markets, so having a choice of multiple is not always a bad thing.

Whatever you chose to do, try and stick with it for a longer period of time, simply trying something for a week is not enough to get a full understanding of what it is that you are doing. Of course, if you are absolutely hating it then it is better to change earlier than later as it could put you off trading completely. Once you have found the style that is right for you, make sure that you set up a trading journal, that you are recording what you are doing. This is completely new to you so you need to work out what your natural habits are and this can be done through a journal, only then will you be able to start adapting the style of your trading to better suit you and the markets together.

Beginners Forex Education Forex Basics

Overlooked Techniques That Can Help You Be a Better Trader

When we think about all the things that we do or professional traders do to be successful, it is normally based around reading. Things like creating their strategies, following certain rules, and controlling their emotions. Those things are vital, but there are also things that we need to do which actually have nothing to do with trading, they are things that can benefit our life, which can then subsequently benefit our trading. Here, we are going to be looking at some of the stranger things that traders do that can help with your trading.

Eating Healthy

This is an easy one for us, eating, we love eating, most people love eating. What we do not mean though is eating just anything you want, you need to be eating the right stuff, you need to be eating for your success. So why is eating so important? A large percentage (around 20%) of the calories that you use on a daily basis is used by your brain, what you eat is what fuels your brain and you then use that brain for your trading. It is important that we are able to keep our brain healthy and functioning properly, not just for trading, but for our overall living. Eating better does not only help your brain, but it also helps your body, losing weight, building muscle, all of these things help you overall well being and can subsequently give you more energy for trading.

It should be obvious that there are some foods that you want to eat more of and some foods that you want to eat less of, we have broken them down below, it is, of course, a non-exhaustive list and you do not need to restrict yourself to just these foods.

Good: Those lovely green leafy vegetables, lots of good fats such as eggs, nuts, and some fish. French fruits that have not been processed and preferably organic.

Bad: High sugar content drinks or those with high levels of fructose corn syrup. Refined carbs, alcohol, high levels of trans-fat, and highly processed foods.

Waking Up Early

This is not going to be the most popular thing that traders do, but getting up early can have a number of different benefits for your trading performance. Many people can struggle to get up for 9a, so if we were to recommend getting up at 5 am it would probably make you laugh, well that is exactly what we are suggesting that you do.

Teaching yourself to regularly get up at the same time, especially at a time that you do not like is an incredibly powerful way or touching yourself with high levels of discipline, a trait that is vital for becoming a profitable trader. If you look at those that are extremely successful, do you think they lie in until 10 am or 11 am? Probably not because they are up early, going through hair routines ready to make more money.

It is a good idea to start your day with a routine, this builds up your discipline but it also helps you develop your own understanding of things, you often learn best in the mornings, creating a routine to help your own growth is vital and a perfect way to start the day.

Do not think of getting up early as a punishment, think of it as a push towards your success. If you feel that getting up in the morning is too hard work, then you will certainly find that keeping your composure and discipline when trading will be even harder.


This will seem weird to some, but not so much to others, meditation is a fantastic way to clear your mind, in fact, it can completely clear it which can help you to come back with a fresh mind. Stress is a natural feeling when trading, as is frustration. Being able to meditate and clear that mind will enable you to clear yourself of those stresses and frustrations and allow you to better analyse the markets without any of the previous results or stresses still in the back of your mind.

Medication can also work as a way of focusing your mind, it can allow you to focus on specific issues and to work out exactly how to resolve them, it also helps to free other parts of your mind to explore new ideas and horizons which can create new opportunities for you in the markets.

It does not need to take up a lot of your day, but if you start to feel that you are becoming stressed and frustrated, step away for just 30 minutes, try to clear your mind, and then come back and take another look at the markets with a fresh look.


This sort of goes hand in hand with your eating habits, exercise is fantastic not just for your body but your mind as well. What do you feel once you have finished a workout or the next day, apart from the aches and pains, you probably find that you have a lot more energy, not to mention that you probably sleep a lot better.

Exercise helps blood flow, the thing that your brain needs. There have been a lot of studies that have looked at the correlation between exercise and brain function, it can increase the function of the brain by up to 30%. Having that extra 30% to help with your trading could be of a real benefit, making you sharper and more likely to spot small deviations.

Consistent training and exercise, doing it regularly, and doing it at the same time each morning will help you to build up your discipline, a skill that is vital for trading.


Reading is a fantastic thing to do and has been proven to help increase the motor functions of the brain, it does not have to be trading related reading, just reading something would be enough to stimulate your mind. Of course, reading anything is good, but reading books related to what you are doing, in this case, it would be trading, can both stimulate your mind and give you new ideas that you can implement into your own trading.

A lot of us may not like reading, but if you understand that it is now a part of trading, you should be trying to get yourself into the mindset that you are reading to improve your trading and that it will help your overall profitability.

Beware of Too Much Multi-Tasking

A lot of things in life require you to be able to multitask, it allows you to complete more and at a quicker pace, however, when it comes to trading it doesn’t really help you too much. The majority of very successful traders will focus on a single task. At a high level of trading, you are not able to focus on so many different things at once, in fact, it will be hard to focus on more than one. When you are analysing the markets, you can only analyse one at a time, as soon as you start to look at more than one, it will begin to smudge your analysis and they will begin to bend into one.

You need to be able to focus fully on just one, you need to focus all of your energy onto a single asset or currency pair so that you can fully analyse it, not try to analyse multiple things at once. Instead of trying to multitask, simply work for 45 minutes every hour, fully on one element, then take a break, come back and work on the next thing, doing it all at once will confuse you and then make you take a longer period of time to complete all required tasks.

So those are some of the things that traders do that actually have very little to do with trading or are things that you may not have thought about. It is important that when you set yourself a routine, that you stick to it to build up your discipline. Are there things that you do that others may think it is strange, probably, but there are a lot of strange things that people do that really do work and really do improve your trading performance.

Beginners Forex Education Forex Basics

Inside the Daily Routine of a Forex Trader

What does it mean to be a forex trader? What is like to be a trader who is brand new and just starting in pursuit of a carrier? What does it mean to be a professional forex trader who has traded for years and who is going to trade until he dies? Answers to these questions are not easily accessible. These are the things that we can’t really learn from a book or Google. This is just something that we can learn from someone who has already walked down that road or something that we simply need to experience. Luckily, we were surrounded by a lot of different types of traders over the past years so we had a chance to perceive forex trading from many angles.

Surely, it is different when someone is just a beginner, where everything is new and exciting apart from some trader who is in the game for fifteen years. After the fifteen years, a lot of sleepless nights have gone, foolish mistakes are no longer involved and the excitement is pretty much perishable. For someone, it becomes a legitimate business and number one priority of income and for 99% it is just temporarily flame. There is a big difference between incorporated traders and a skill-less guy who trades occasionally trying to make a little bit of money. We want to dive deeper into this topic because we think it’s such a huge piece of the puzzle of becoming a good forex trader.

First thing, if we want to go to any business that is thriving and succeeding we need to have a schedule of working hours. A methodical approach where everything is set and where everyone has a specific role is crucial. Treating forex trading as a business is a basic rule. The problem with trading is that most people treat it as a hobby with the absence of any kind of structure to their trading schedule which might be the worst thing to do.

Let’s take an example of a professional gambler, the person who makes the living of gambling. If we talk with professional poker player, he doesn’t go sit down on a poker table all day long, that is not how he makes his money. He plans out: “OK, I am going to play on Friday nights from 9 pm to 2 am because that’s when all the drunk tourists are in town, that’s when I’ve got my edge” or “I am going to play these eight tournaments during the year, no more no less and that’s my schedule.”

In contrast, we have a recreational gambler who sees a blackjack table and say: “Oh cool, I could play, I’m feeling lucky tonight”. The professional gambler is on that table as well but he has crystal clear goals. He is like: “I am going to play for 4 hours or until I lose 2000 bucks”. Eventually, If he loses this amount of money or after 4 hours he will get up and leave. Those people have a schedule, they have planned out their business. Here we have all these analogies because we want to point out how important it is that we have to have our business schedule. The stock market is open only seven and a half hours a day, when we speak about currencies one of the great things and the worst things is that is always open. So there is a chance where we can sit at any time and ruin our trade with just one click of a mouse.

From experience, we know that without a plan we might sit inevitably in front of the system all day long. This is something we will try to avoid because we could easily fall into the trap of over-trading. Most of us are used to going to a job, putting hours and getting paid for it. At some point in life, we all have done that. In trading, we will probably have some days where we are not going to make any trades, so we might feel like we are not really working because when we are actually working we are clicking buttons, we are making money. These moments can often be very irritating for traders, therefore out of inconsistency most people might start to over-click and get into a trade to justify their presence. So working 24 hours as a fulltime trader on the open market is a very unique type of job where we simply need to have our working hours well planned.

How exactly you are going to customize everything is completely up to you guys because everyone has a different lifestyle. We need to understand how to fit trading into our life. The market shouldn’t have control over our time we should try to dictate the tempo of our trades. How we might do that? It will be good to look at the upcoming news reports or events and identify times during the week where there is likely to be a huge move in the forex market. That is how we could plan in advance to be in front of the system during those times and stay away from the system during the other times. It’s always better to plan out the week ahead and try to avoid times where the market is just chopping around without clear direction and high volume.

Of course, we can’t always predict when that is going to happen. The market is a big wild animal and it tends to do crazy things that we couldn’t even expect. So if we want to be successful on the market it will be good to structure our life to where we can follow our routine based on great research and discipline. Routine is very important. Which is why we will try to reveal some of the rituals and habits of successful traders. So for dedicated traders, first thing in the morning we could do is to check overseas markets (Europe, China, Nikkei) and US equity futures. Of course, we are not going to deal with details like when is the best time to hang out with your friends and family or when is the perfect time to swallow your vitamins, that is totally up to you guys. Here we just want to focus on some trading routines that we might implement in our lifestyle.

Further on, we could check news reports like or, there are plenty of resources out there. Keeping ourselves up to date and integrated into the market is a great thing to do. Our job should be to know as many details as we potentially can and constantly educate ourselves about all the features. Considering the risk domain, we should try to look up for relative strength or weakness, what are the strong currencies, what are the weak currencies. This should be an automatic thing we do every time.

We want to trade when a good opportunity is there and just because there is a good chart pattern. Looking for high-percentage setups is one of the routines that we might do as well. So staying up to date to the news is super important. We also need to make sure to be familiar with the upcoming week’s economic news. For example, watching or reading financial news (CNBC) every day for about 20 minutes is highly recommendable. This is a great medium to stay involved because they always talk about currencies there.

Next what we want to point out is that we might consider downloading The Trader Work Station App, so-called TWS, MetaTrader 4, or MetaTrader 5. Professional traders often like to say that these apps turn out to be the best things that ever happen to them because before mobile trading they were handcuffed to the system. Before the TWS they didn’t even know what was happening out there and if they did know they couldn’t make a change. In today’s world with mobile devices we could stay dialed in the market all day long. One more time, starring at the screen all day long is a very bad thing however being dialed in the market all day long is a great thing.

What we want to do here is to try to check prices periodically. The cool thing that we might do is to set the app to alert us when prices do something or when volume does something. We don’t want to sit all day and watch, so setting alert through our mobile trading assistant is a good way of saving our precious time. Signing up for service that delivers news to our phone or email is recommendable as well. Again, or just keeps us dialed in for the big news.

One of the hardest things to figure out as a trader is when to trade and when not to trade. Everyone at the end has to go through the process when they trade too much and then when they really start to understand the notion, they actually swing too far another way where they find all the reasons to not make trades. This pattern from over-trading to under-trading is quite familiar for most of us, it’s part of the process and the great thing about this is that people eventually might consider the risk. Before that they were just thinking about the money, they were never really cautious. Therefore, one of the hacks that we might implement in our daily routine is to find a hobby or some activity that can occupy our time.

We don’t want to click buttons too many times. We don’t want to fall into the trap and make trades out of boredom. Learning how to read a chart is not that hard, there are calculators that can point us what to do but knowing when to stop and how to allocate our time is the hardest part of trading and we should take it seriously. So what we all need to develop is a strategy and routine that is unique for each one us and that works in a way that is comfortable and profitable. We need to approach forex trading as a business and we want to do that with discipline and a plan.

If we develop certain routines we might master ourselves and our emotions by not subjecting ourselves to every single move up and down in the markets. We should trade by dictating our terms with well planned hours of activity and that might be a great base to start and continue trading. Strategy and routine are the two main words we want to remember if we strive for improvement and control over our trading system. Apart from this, we need to allow ourselves to have a balanced life outside of trading.