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Sunday, May 09, 2021

Does Trading Psychology Matter? (2/6)

Does Trading Psychology Matter? (2/6)

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Why Does Forex Trading Psychology Matter?

The psychological mistakes that traders make are common among almost all traders and they can hold you back from being successful.

Reason these errors are so common is because when trading we are all dealing with either making or losing money. This brings on feelings of greed and fear.

When we are being greedy we can have a tendency to make the same mistakes over and over again that will hurt our results. These mistakes are not taking profit when we should, making far too many trades than we should or risking a lot more than we should.

We do these things because we kick into greed mode thinking we are going to make a lot of money.

When we move into fear mode another set of mistakes creep in. These errors are normally holding onto losses for far too long instead of quickly cutting them short or not entering the next good trade we have found because the last trade just lost.

We start doing these things because we are fearful of losing money.

These psychological errors will continue to hold you back and stop you making money no matter how great your trading strategy is.



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