Trading in the forex market promises unlimited profits as well as unimaginable losses. This is the reason why many traders are not able to temper their emotions. Emotion-based reactions tend to be dangerous especially in trading. Emotional reactions are usually opposite to rational thought. So this happens in your trading will be difficult to make the right decision. For further information please click fxtrade 777
In trading in the forex market, market knowledge and trading techniques you must learn and understand you please click tradex1.com. With increasingly mastering techniques in trading. You will be more confident in the face of market movements, and this will suppress your emotions. However, technical analysis has limitations.
Such circumstances are difficult to accept, so in many cases, traders tend to emotionally hold their positions even though they are losing money, and are confident the market will reverse direction because the indicators used are right anyway. That’s an example of the inevitable emotion, and it should be normal. But your reaction may be different if you already know the characteristics of the market. Here are 4 tips so you can suppress emotions while trading and stay focused on market price movements:
Know the Market Movement
No trader can determine price movements with certainty. The market can move without being planned not to know how well your trading system or trading plan. So if you experience a loss because of the wrong position it does not mean your trading strategy is wrong. Every trader should be able to accept the fact that his position can be wrong or not as expected. Being fully aware of this then a trader remains focused on the next price movement
Apply Risk Management
A conservative trader usually determines a risk of not more than 2% to 3% of the account balance at the time of entry. Suppressing emotions in the use of money management is essential to avoid unexpected losses.
Not Using Lot Trading Simultaneously in One Entry
To reduce the influence of emotion when you are the wrong position is with you do not use trading lot size in one entry. You can use half, one third or maybe a quarter. This works to add new positions when price movements do not match what you expect.
Note Also your Exit Strategy
So you can always focus on market movements, plan your exit level properly, both stop loss and target. This will prevent your emotional involvement when market movements are not what you think they are.