It happens to all of us: after a bad loss based on a sloppy decision we just can’t stop that building up poison inside of us. Anger and revenge makes us make some more sloppy trades and in couple of minutes the trading account in empty and you cannot stop yourself from shaking!

Controlling your emotions is almost EVERYTHING in forex trading. No reliable strategy will save your from self-destruction if you don’t learn how to control that wild monster inside your heart.

Angry trades will not only make you not see clear, but also try to hunt down the possibilities to make the lost money back right away. Revenge is a powerful motivator. It is so controlling that it often clouds our rationality. The worst part of it all – in most cases you don’t even know you are engaged in angry trading until you are completely broke!

Read more...

Forex trading has an element of mind games and profiting largely relies on your ability to handle the pressure psychologically. Your success depends on understanding your own mind, ability to control the emotions and realization that one of the factors that moves the market is the psychology.

Forex market has no physical location and it operates through an electronic network of banks, corporations and individuals like you. In other words, the market goes up and down based on decisions made by people.

Keeping an eye only on trend is not enough. You have to understand what moves you as well, and not focus only on the mass psychology that influences the whole pool of players. You have to analyze what makes you tick and recognize when your own mind starts playing games and therefore influences the decisions you make.

Many traders claim that in order to be successful in forex, you have to stay away from overtrading. What is considered overtrading? How to stop yourself from trading too much? What kinds of emotions lead to overtrading mistake? How much money can you loose from trading too much? Read more...

As forex trader you spend hours next to your computer. Day becomes night, night becomes day and you lose yourself in currency trading chaos. Sometimes you forget about the world outside your monitor. Sometimes food is the last thing on your mind. And sometimes you have an incredible urge to nibble something tasty while you trade. Does online forex trading causes the unhealthy diet? Do forex traders overeat?  Read more...

The dilemma in forex trading is the uncertainty, since it is extremely difficult to predict for sure when the market is going to be overbought or oversold. The struggle between your mind and actions is endless. Sometimes you end up blowing up your account completely due to fear and hesitation. The question is, how can you force yourself to be more focused during trading and concentrate better while entering a trade? How to overcome the urge to close the trade too early and therefore end up with a small profit? Read more...