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14/31
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Introduction
The journey to success in Forex trading begins with self-introspection and discovering the trading style and strategies that suit your objectives, risk appetite, lifestyle and own unique circumstances. It is imperative to find a trading technique that is in sync with your personality than to try to conform to someone else's idea of a "proper trader". This article seeks to help traders discover their own trading styles.


The first port of call is assessing you level skill, competence and preparedness for the task of Forex trading by answering a series of questions. These questions if answered correctly will help in moulding a top notch trader. The best trading style for any individual depends on many factors including the reasons to trade, availability, work preferences, requirement for flexibility and level of patience
  • Reasons to trade:
Understanding the reasons behind the trading will help in setting the overall objectives and understand how trading will fit into your lifestyle. Answering the following questions will help you understand if trading is the best thing.
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vap61 avatar
vap61 12 Apr.

сильная статья,проработаны все аспекты торговли,лайк!))

Sebine avatar
Sebine 18 Apr.

Good luck!:)

rashadali avatar
rashadali 27 Apr.

goood article 

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23/69
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Introduction

“Some are born great, some achieve greatness, and some have greatness thrust upon them.” is a famous quote from William Shakespeare. With research firmly suggesting that more than 90% of day traders lose money in the long run, the Forex market surely is not for the fainthearted. What is apparent is that the 10% that thrive in Forex market do not depend on sheer luck or mere coincidence but possess superior skill and superb character. This article endeavors to educate traders and aspiring traders on the traits of a good trader.
The key fundamental traits of a good trader
  • Extremely disciplined.
Going through High school one of the lessons that I learnt from my teachers is that discipline constitutes half of a person’s education and if that half is missing then the other half is not there. The same with Forex trading, discipline is everything. Discipline needs to be exercised at all times and not sometimes only. No matter what strategy a trader pursues they should be disciplined enough to follow through their chosen strategy.
As Jim Rohn right says, ”Discipline is the bridge between goals and accomplishment.”
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VictoriaVika avatar

Good work!

Enju avatar
Enju 14 Dec.

good job

mutsi avatar
mutsi 14 Dec.

Well done !

FXRabbit avatar
FXRabbit 14 Dec.

Good article!

IRUNYA avatar
IRUNYA 14 Dec.

хорошая статья

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19/40
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INTRODUCTION
In part 1 of this series, behavioural finance was defined as a branch of finance that proposes behavioural and cognitive psychology-based theories to explain market anomalies and investor actions. The discussion then centered on overconfidence, loss aversion, gambler’s fallacy and the herd behaviour. As a continuation to the series the other unwelcome behavioural traits exhibited by traders will be looked at in greater detail.
MENTAL ACCOUNTING
Mental accounting refers to the practice of investors to separate their money into separate and various ‘buckets’ based on a variety of subjective criteria, specific goals and time horizon. Investors think differently about each mental account and this is not only illogical but causes the investors to focus on the individual buckets of wealth rather than think broadly about the entire portfolio.
How does mental accounting affect traders on the forex market? First as a trader invests on the forex market, it is part of a greater wealth. If this investment is taken separately from the other investments in stocks, property or bonds it may be subjected to mental accounting bias. Secondly a trader may invest on the forex market to me…
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Alisitas avatar
Alisitas 24 Mar.

I like this!

Fundamental avatar

Good! Comments: The first paragraph in 'Anchoring' is right on the money, except for the term of 'misuse'. Next sentence talks about 'attachement' which really is what it is all about. The 'mind' gets attached to certain information that is 'known' or subjectively been seen as 'familiar' or 'reasonable', that leads to attachement. You may get attached to some 'relevant' data, allthough other data may be 'more relevant', or you chose the wrong data because they seem more familiar than other data. One more aspect of anchoring, which we have been measuring, is fatigue, that also induces anchoring

Convallium avatar
Convallium 27 Mar.

interesting article!

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10/40
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INTRODUCTION
Most literature on forex trading advises traders to guard against emotions when trading. Words like greed, fear, emotionally attached are commonly used. However these are not the only emotional hazards in trading. A school of thought has emerged in finance that seeks to explain human behaviour in making trading decisions called Behavioural finance.
Behavioural Finance is a branch of finance that proposes behavioural and cognitive psychology-based theories to explain market anomalies. Unlike conventional theories such as the Capital Asset Pricing Model (CAPM) and the Efficient Market Hypothesis (EMH), behavioural finance does not assume that investors are rational meaning that the information structure, the characteristics of market participants, emotional and psychological issues systematically influence individuals' investment decisions
This article seeks to explain some of the behavioural traits that affect traders and possibly suggest ways to overcome them. Though there is no cure for human nature, the awareness of the existence of such biases can help a trader avoid major pitfalls. The topic will be presented as a two part series.

OVERCONFIDENCE

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Alisitas avatar
Alisitas 18 Mar.

Well done! I like it!

Olga18375 avatar
Olga18375 18 Mar.

very interesting!!!

Fundamental avatar

Hello Ilolor! Nice article! Especially the part about overconfidence and gamblers fallacy. The gamblers fallacy was exactly how I traded when I started out. And it took me a good three years to learn - to 'undo' it! In the blog, I have an article about the mechamisms around the governance of loss-aversion mechnisms and how you can train against it.

Fundamental avatar

I did too an article here in the contest about the skills of trading psychology, it would be nice to hear your views about it.

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