Emotionally Trading the Forex Market - Why You are Screwed

By: Kelvin Chan

It is not a surprise that many people find profitably trading the Forex market so difficult and here's my take on this... apart from strategy and money management wise (which are both really vital to a trader's success), one must also have a good hold on psychology.

More on that in a minute ...

You see, all traders are humans which means we are fleshly and carnal which incidentally also means we naturally have emotions in us. And science tells us that we often make decisions based on our feelings (or emotions) and not so much on our logic (as one would believe).

That is why it's absolutely important to pay attention to your emotions while trading. It's not too often that I see very emotional people succeed at trading. It's much like poker actually ... those who can play it cool and not show too much of how they're feeling will tend to win the game better.

Only you know yourself enough to say which side of the emotional balance you lean on.

One suggestion for relatively emotional people who wish to succeed at trading is to trade mechanically rather than discretionally. By trading mechanically, one removes a lot of unwanted emphasis on self and ego and as such, can follow a proven system better.

For some of you, you're probably battling inside right now as to whether you belong to the emotional or unemotional side. And that's ok. Simply go to 3 people that are closest to you and ask them for their honest opinion. You'll be surprised to hear their feedback.

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