You may have the best possible strategy. However, the most common mistakes in trading happen due to poor decision-making process. Find out the best practices of Forex trading psychology and get practical tips on their implementation.
Besides the market knowledge, traders need to have a certain psychological profile to be successful in their career. Picture a person who has to take swift decisions and stick to the strategy, while showing as little emotion as possible. Most likely, this person doesn’t even exist. However, this doesn’t mean you can’t achieve the same results - especially if you’ve got automated trading at your side. But let’s take one thing at a time. The worst of the human emotions that will definitely mess up your trading is greed. When you make money, you want to make more money. This is human nature - we want to improve and greed is just our way of saying we can do better. Another strong emotion is fear - fear of success, failure, mistake and consequences. Fear can lead to bad decisions - from selling too early to buying too late. You may feel like fear will never go away, but here’s where knowledge comes into play. The more information you have, the more trust you have in your strategy - and the calmer you can act.