Day Trading Forex Currencies – How To Eliminate Your Fears -


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“Are You A Revenge Trader Or Forex Trader?”

When day trading Forex currencies, one of the biggest problems and realizations about day trading is in many ways; it’s totally opposite to nature and everything that we’ve learned growing up. We get too close to the stove and get burned. Logic tells us not to get too close again or we will get burned again. In trading, your emotions tend to work against you. In day trading Forex currency, you’re trying to deal with the unpredictable, unknown nature of the markets, in addition to understanding a massive body of knowledge along the way.

There is more money lost because of emotions in day trading Forex currencies than for any other reason. You might think it’s the lack of experience or knowledge because or the erratic nature of the Forex markets. It’s not. Infact, how do you think seasoned traders make most of their profits? They understand and master the role of “Fear” and “Greed” when it comes down to trading Forex. I see it all the time.

Every time a trader hesitates to get into a trade or overanalyzes a set-up, it costs precious money. Every time you stay in a trade longer than you know you should and miss out on taking your profits you simply give your money to the markets. Your emotions will cause you to get out of a trade too soon because of your fear of losing the profit that you made.

I’m sure you’ve herd of the phrase, “Once bitten, twice shy.” What new traders don’t realize is, they might think they don’t want to get bitten again so they become fearful to enter a trade. An experience that often occurs in day trading Forex currencies. What’s really happening is, they’re getting bitten over and over again every time they are fearful to enter a trade.

You end up in a worse emotional state then when you started because now, you’re frustrated and angry for missing the trade and you have to sit there and watch it go nicely to your profit target. Some even like to get bitten once again, by trying to get into that same trade only this time, they get in too late and watch it come back to hit their stop loss. The source of many emotional problems in day trading Forex currencies is fear.

There are many other feelings that can influence your decision-making also, like hope, anxiety. One of my favorites is the one I struggled with for a long time. For a while during my apprenticeship, I didn’t even realize that I had moved from being in the Forex trading business to being in the Forex revenge business.

Every time I took a loss, my mentality changed and I often started to think that I need to get it back and went into the revenge mode. I wanted to get back at the markets and win back my money. It was only human to experience this. But this was the area that you need to be a robot and just move on and look for the next trade.

When you develop your confidence and discipline to act without these debilitating emotions you will replace your fears and begin your journey to becoming a successful trader. But, don’t force it. Develop it with patience and practice

There are great books on the subject of trading emotions. My favorite book is from Mark Douglas, “Trading In The Zone”. This was a great start but I needed more. If you’re looking for long-term change you need to take action and shift the way you think about trading and change some of the beliefs you have.

For this, I highly recommend specific lessons that will eliminate your fears and give you the confidence you need to trade without the emotional influences and bad habits that will not only prevent you from your trading profits but cost you more from not becoming a successful long term day trading Forex currencies trader.

For more on Training your mind and controlling your emotions see: http://day-trading-forex-currencies.com

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