Is Trading Tough? Forex Trading Psychology

Posted on: September 14th, 2009

Let’s face it, some things in life are much easier to learn then others. With 95% of new traders losing money and quitting within 3 years, it’s obvious that trading is not “the lazy way to money”.

Most of us lack two aspects that are crucial to successfully learn day trading: patience and discipline. In our “high-stimulus” modern society we demand instant gratification. Cunning advertisers make a lot of money selling “get rich quick” schemes and in the trading world often these are called “trading systems”.

Most successful traders will agree that trading is at the most 50% trading system/method and 50% mental/emotional. It is very easy to underestimate the mental/emotional aspects. Every smart advertiser understands that as humans we make decisions emotionally and then justify the decisions with logic. The two most prevalent emotions in trading are fear and greed. For the majority of people who are losing money consistently, this is why!

Fear makes us get out of trades too early or not get in at all, greed keeps us in trades too long or gets us into trades we should never be taking. Impatience works well with greed and fear overshadows are efforts for discipline.

What a viscious cycle! Trading is tough!

So, you still want to be a trader? Like most things in life, we learn what we want from experiencing what we don’t want. After you’ve lost enough money trading you realize how important patience and discpline really are. You find a trading system or method and become so confident in it that you don’t have to experience fear anymore. When you master risk management then you don’t need to be greedy. Your account starts to grow and your trading life becomes happy.

Warning! This won’t happen overnight and if you’ve ever learned a new language or musical instrument you know there is some major effort involved. But hang in there, persistence and committment baby!

Comments: 1 • Posted in: Psychology

One Response to “Is Trading Tough? Forex Trading Psychology”

  1. alex says:
    09/14/2009 at 1:23 pm

    hello i want to join

    Reply

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