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14/34
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In the grip of fear

Most retail traders who are really trying to bring their trading to the next level endure the same problem. The problem is fear. This can be fear to lose it all, fear to give back their newly made profits and most of all, fear for the unknown.
A very common question is ''how to overcome the fear after taking lots of big losses''. This is a question I had to ask myself many times. In the beginning of my journey I endured loss after loss without knowing and realizing why. To become more consistent I started trading more and more.. Hopefully you all realize this is the most stupid thing to do. If not, now you know it is. I also opened positions that were way to big for me simply because I ''thought'' the price would move in my favour. Never think the price will do so just because you think it will.
Realize and evaluate

After about six to twelve months I realized I would not get anywhere with what I were doing at that time. I had to get away from my desk and screen, I had to reevaluate my actions. This was very hard for my as I had to completely step out of my daily routine.
The first days felt exactly as I expected. It was almost as if I were enduring withdrawa…
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Yulia10 avatar
Yulia10 30 Nov.

nice article

FXNOAD avatar
FXNOAD 30 Nov.

well done

myfx81 avatar
myfx81 1 Dec.

super good

FXRabbit avatar
FXRabbit 4 Dec.

Well written article!

Blaise avatar
Blaise 7 Dec.

Great article.....Quote at the end summarises it all !

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15/54
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Hello, my dear fellow community members and my dear readers.
Today I am going to talk about the greed and fear. I am sure that most of you are already aware of these two emotions.
  • FEAR
Many of us, in fact, all of us have a fear when we are trading in the markets - the fear of losing. But why does this fear arise? when we say that we have no fear of anyone then how come that we have a fear while trading when there is no one around us? Well, the answer to this question is- this is the fear of losing, the fear of losing the money. In today's world money is the most valuable asset. Losing money seems to be losing the very important asset in your life. When we have this feeling of losing something which is very important and dear to have, we tend to be afraid of it. We have a fear in mind. This is what happens in the markets. We don't want to lose the money, but the decision that we made is going against us and we may lose money in the process. This fear shadows our mind and we tend to take wrong decisions in the market resulting in the loss of the capital.
  • GREED
Greed is another most important factor or the emotion. It is something that we all have encountered. Greed comes into bein…
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TInna avatar
TInna 1 June

well done!

Yuliya_N avatar
Yuliya_N 1 June

It was interesting to read about the ghosts haunting traders

anna_n avatar
anna_n 2 June

very nice article!

Adel55 avatar
Adel55 11 June

good

sharpsense avatar
sharpsense 16 June

well done;)

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16/65
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Trading is attracted by more amateurs traders because they thought its easy money but it’s not .
Trading is similar to high thrilling and dangerous sports like sky diving, rock-climbing and scuba diving. if you forget your safety/risk management for a single minute you will hit the rock bottom.
Amateurs dream about earning millions of dollars in short time period without proper knowledge and they will come with their hard earned money and lose most of them. These games provide intense pleasure but it’s like double sided sword it cuts in both directions and many participants ignore the risks and take chances to get lucky but in the long run their luck will run out. Most traders lose because of greed, fear, hope and regret.
An athlete who wants to enjoy risky sports has to follow safety rules. When you reduce the risks, you gain an added sense of accomplishment and control. The same goes with trading.
Successful trading stands on three pillars:
Psychology.
Market Analysis (Fundamental and Technical analysis) and
Money/Risk Management.
I am going to explain about one of the main pillar which is most important for successful trading it is “Trading Psychology” because most o…
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Yulia10 avatar
Yulia10 30 Apr.

well done

Helena_Prekrasnaj avatar

Пусть ошибки быть мало))

AnnaZhurina avatar

Хорошая статья ! Молодец !

Lizabeth avatar
Lizabeth 20 May

Very good article,my friend!!

dumara avatar
dumara 28 June

Muy bueno.
Saludos.

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12/65
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1. Introduction
I still remember my first days of trading a demo account. I was trading without a strategy or a trading plan, just common sense trading and it was successful!
But when I opened a real account the story was totally different as if I became another person. I was not able to exit a losing trade ,rather glued to it in front of my monitor like a deer caught in the headlights, I increased the risk irresponsibly in wrong times, I did revenge trading trying to quickly " make back " the money I just lost...etc.
This article is about you, me, and every trader who suffers the same bad trading habits. It is an attempt to explain, from a biological perspective, why forex traders often make irrational decisions and what can we do about it.
2. The Biology of Greed and high risk
When the trader sees a promising trade, a region of his brain Nucleus Accumbens (NAc) gets activated. This triggers the dopamine reward circuitry. The reward system is normally activated when anticipating something pleasurable or exiting like eating, having sex, listening to music, sky diving ,gaining money, receiving appreciation ,etc. At those moments the feel-good Dopamine hormone is released as a rewar…
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CharmingRimma avatar

agree with you!

MR_KHALEDBADRY avatar

very good

RIANNA avatar
RIANNA 8 Dec.

great

olgerd902 avatar
olgerd902 12 Dec.

Интересная и нужная информация

MobNaga avatar
MobNaga 18 Dec.

Интересная и нужная информация

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22/66
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1. Introduction.
Vous est-il déjà arrivé de voir ce qui n'est pas ?
Nous analyserons dans le présent article l'impact des biais cognitifs sur les performances de l'investisseur et passerons en revue les principaux biais cognitifs, les erreurs et conséquences généralement observés dans de telles situations. Cet article a pour but d'aider à reconnaître ces biais cognitifs pour les éviter et prendre ainsi les meilleures décisions dans votre activité de trading. Commençons avant tout par définir ce qu'est un biais cognitif.
2. Définition.

La cognition désigne l'ensemble des processus mentaux lié au savoir tel le raisonnement, l'intelligence, la mémoire et le langage. Il regroupe les activités psychiques en lien avec le traitement de l'information et se distingue de l'affectif qui lui se rapporte aux émotions.
Un biais cognitif, ou biais psychologique, est un mode de pensée qui dévie de la pensée rationnelle. L'ensemble de ces biais répond au besoin de l'individu d'apporter un jugement rapide par des raccourcis cognitifs et a pour l'essentiel trois causes :
1. Limites des ressources cognitives :
  • limites au niveau du temps disponible à la réflexion
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al_dcdemo avatar
al_dcdemo 17 Mar.

Useful content, nice presentation and very well written. Nice job!

CharmingRimma avatar

so good!

Olkiss70 avatar
Olkiss70 25 Mar.

very interesting

Yulia10 avatar
Yulia10 25 Mar.

useful article!

s_amira avatar
s_amira 8 May

Good article, thanks.

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18/61
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I think that everyone here knows what fear is and has already experienced that emotion on financial market ! So we're gonna start by a short definition and we will see what that implies for our trading activity.
Fear is defined as an uncomfortable feeling induced by a situation perceived as a threat by the subject. So, threat is the cause and fear is the consequence. the two go hand in hand, It sounds obvious but we often hear that your trading method must match your personality which means that you must consider your sensitivity. I'm not totally agree with it. What could affect your trading except fear itself ? Does this mean that some traders are more sensitive to fear ? I don't think so.
Are you afraid by opening your fridge or by preparing your dinner ? Of course not....,so how is it different from trading ? We will see three major causes that induce fear and shall be proposing some suggestions for overcoming them.
1. Fear from denial.

Denial is an unconscious refusal to admit a fact or a thruth. This refusal can be explained by pain and discomfort to face reality. The person clings to his own reality; a fantasy world of course but much more comfortable to live with.
This ca…
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Airmike avatar
Airmike 23 Sep.

nice article

Polinaria avatar
Polinaria 24 Sep.

Great article! really enjoyed reading!

BeautybyLesya avatar

Great article! Interesting!

Mariia avatar
Mariia 12 Jan.

very good done

art_Alena avatar
art_Alena 23 Mar.

very good!

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18/46
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The forex market is the largest financial market and can be accessed around the world, but even though there are many forex investors, only a few are really successful. Many traders fail for the same reason the failure in other asset classes. In addition, extreme leverage - the use of borrowed capital (collateral) to increase the potential return on investment - that is provided by the market, and a number of relatively small margin to trade currencies, denying traders the opportunity to make a lot of mistakes at low risk. Factors specific to currency trading can lead to some traders expect a return on investment greater than the market can offer, or to take more risks.
Certain errors may keep traders on their investment objectives. The following are some of the common pitfalls that can interfere with the forex trader:
1. Not Maintaining Discipline in conducting trade.
The biggest mistake that can be made by any trader is to let emotions control trading decisions. Being a successful forex trader means achieving a major victory after a while suffering from a lot of small losses. Experiencing many consecutive losses emotionally disturbing, and can test the patience and confidence of…
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Forexahollic avatar

Thank you, Anna :)

Likerty avatar
Likerty 25 Mar.

Man, you forgot to place some pictures..:) Thats a no-go in this contest...

Forexahollic avatar

Rather difficult to apply in the form of images. but thanks for the suggestion. :)

Airmike avatar
Airmike 25 Mar.

nice article

Forexahollic avatar

Thank you, Airmike :)

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22/45
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Remember the phrase “Greed is good” from the movie “Wolf of Wall Street” by Michael Douglas? Well, it depends on how greedy you are and how you handle your greed.
While we do not froth on the mouths like hyenas or drool like Komodo dragons, we all have some level of greed in us. You might say that greed is what makes us competitive to some extent. However, when combined with stupidity and fear, you will never be a successful trader.
Been in the FX markets since 2009, I have gone through all the emotions as every trader needs to, and to be honest lost 100% of my first real account to stupidity and 80% of my second real account to greed and fear. I am not saying how many demos I have lost. All I am saying is, I should change my middle name to “Margin Call” . Using examples from FX charts, I will walk you through these 3 trade killers.
Stupidity
Stupidity in trading can be defined as doing something you know you are not supposed to be doing. An example is opening a position without a stop or trailing stop or ‘believing’ that market sentiments are wrong. Another case of stupidity in trading is not believing in the market's "self-fulfilling prophesies".
The memory of Black Thursday 201…
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Olga18375 avatar

Good work!

anna_t avatar
anna_t 10 Feb.

haste - makes waste?

VictoriaVika avatar

Good article, many useful information, well done.

Natalia_Kisenko avatar

Well done!

pipx avatar
pipx 20 Feb.

anna_t very true haste makes waste. Sorry for the late reply, I thought I had replied.

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18/19
Ranking
Fear and confidence are two of the most used words when it comes to the markets. This is no coincidence given that they the two most important drivers of the markets. Whilst trade account for some movement in the markets, it cannot be accountable for the larger violent movements.
Of course if a Canadian business owner needs to purchase materials from Japan the conversation of currency will register within the markets however this won’t be enough to drive price, not in the same way that fear can! Fear can absolutely destroy a market and once it takes hold only the bell or government intervention can stop it.
When George Soros shorted the pound on black Wednesday he did so with such aggression that there was no stopping the pounds collapse and while Soros was responsible for the initial movement, fear soon spread and as people started dumping the pound there was no way to stop it. The UK governments attempt to prop up the currency failed miserably as they simply couldn't cope with the amount of money flooding in against the pound. Eventually the government was forced to remove the currency from the ERM at an estimated cost of 3.3 billion.
One of the most brutal examples of fear was t…
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VictoriaVika avatar

RobFX  Insightful - very well done! A brilliant article. Inspiring! Many useful information, informative and helpful, also there are some useful tools introduced, thank you and best wishes from Victoria :)

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37/46
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In interaction with traders, observe a predominant state in its behavior during operations: fear. Fear of winning and losing This condition affects a blow results in operations. And the fact not be perceived generally entail disastrous consequences. But once identified, it is possible to turn it into insight and prudence. Character essential for profitability. Fear is a feeling that leads to behaviors that can escape the our control. It is inherent in human beings. Once recognized and identified, becomes an additional tool in the application of technical knowledge. How to identify the fear? The big secret is to acknowledge your thoughts, for they are generating feelings. One of the hallmarks of successful investors is exercise insistent self-knowledge, because they were convinced that, through this practice, gained self-control. Ie acquiring a larger domain of emotions, impulse and intuition, knowing uses them. Can also control its own fear. Thus, it makes their operations more efficiently. To identify the fear, the feeling must realize that the causes. Imagine yourself in one of these situations: 1ø - Loss of something desired; 2ø - Loss of prestige; 3ø - Need for approval from o…
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SpecialFX avatar
SpecialFX 19 Apr.

Oi cara! :D It's all about confidence, not enough of it and you become fearful, too much of it and you become greedy and stupid in general...become you think you're invencible. Keeping an emotionally detached and neutral state of mind is the only way to trade successfully in the long run :)

scramble avatar
scramble 24 Apr.

i do really believe we don't trade money, we trade our emotions! concentration is also a good way to manage with fear. when i feel like i'm going to an exam (anxiety, pressure, uncertainty etc..), i just don't trade! history sometimes... teaches! :)

geula4x avatar
geula4x 25 Apr.

+1 Liked: An important article about the psychology of trading. A good trader MUST control his/her feeling and have self discipline! :-)

alifari avatar
alifari 28 Apr.

Excellent article +

hazem2013 avatar
hazem2013 29 Apr.

good work

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34/46
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Introduction From years of experience in Forex , I can memorize a lot of things which make us lose or completely exit the market due to incorrect actions or bad habits which is a result of some factors surrounds the Forex market... in this article I will show some problems which face me when i was a beginner before 8 years and how i overcome these problems which face us daily in the market . I took a lot of time to overcome these problems but if you read this carefully ,it will help you very much to get professional in the market.Preface At the beginning let's remember that Forex market is leveraged market and any incorrect trade (without stop loss) can blow out your account money... risk is from nature of Forex trading , if you do not feel in this market that you are in a battle , forgive me, short time and you will fail,Forex trading is not for you.In Forex you should use all your weapons to win the battle or at least not to exit the battle loser...we should prepare ourselves for the trading not only the strategy ... the strategy is important in trading but what about the human who uses this strategy. Is the human prepared for this ... below you will get prepared for fighting in …
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xtrader360 avatar
xtrader360 28 Apr.

good article +

merosalah avatar
merosalah 28 Apr.

good one, you great

hazem2013 avatar
hazem2013 29 Apr.

it desire + like

khalidamassi avatar

xtrader360, merosalah, hazem2013, thanks for reply

khalidamassi avatar

Thanks for everybody for support

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8/38
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THE KISS STORY Back in high school, our English language teacher told us a story. Many of you may have heard it narrated in one way or the other. It went something like this: A well known public speaker whom we will call Mr. Maneno, was giving a speech at an important event. Twenty minutes or so into the speech, people who were seated next to the speaker’s wife noticed that the she kept blowing kisses at her husband even as he spoke. When the ceremony ended, one of the ladies who had sat close to Mrs. Maneno, approached her and said; “You and your husband must be very much in love.” “Why?” Mrs. Maneno wondered. “I noticed that when your husband was speaking, you kept throwing kisses at him” the lady replied. “Oh that! Well, my husband and I have agreed that whenever he is giving a speech and I feel he is speaking too much or the speech is becoming boring, then I should blow kisses at him. It is coded body language for - Keep It Short Stupid.” KISS IN FOREX TRADING We can apply the acronym KISS to forex trading with another code: Keep It Simple Stupid. The operative word here is - simple. Many of us traders over-analyse the market using all manner of tools to try and find the perf…
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doctortyby avatar

I like the first story in your article.Keep it Short and Simple.It was a pleasure the read your article.Do you use Order Flow in your trading systems?

captain avatar
captain 8 Oct.

Thank you doctortyby for your comments - no, I do not use Order Flow but I do pay attention to market depth when necessary.

SpecialFX avatar
SpecialFX 26 Oct.

Good article and I fully agree with it. Speaking from personal experience, the simpler my trading approach became, the higher the profitability, and the lower my stress levels are. People sometimes try to be too "artistic" as I call it, loads of indicators, lines, studies, and for what? In the end they still do not know what to do, because they freeze with so much conflicting information, known as analysis paralysis :)

captain avatar
captain 27 Oct.

I like that phrase SpecialFx - analysis paralysis ...

SmithJr avatar
SmithJr 29 Oct.

This is one of the reasons why I always try to made my trades automatically (i.e., using strategies) the 99% of the time, to avoid overload of information at "market time", avoid stress, misunderstanding signals, etc.Good article.

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41/67
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This article is a follow up to the earlier article entitled:
 
10 Psychological Obstacles to Success
 
The aim of trading is to trade in a logical, predictable manner with the minimum of emotional conflict. In general, most traders battle with their emotions. Emotions are located in the unconscious part of the mind; to overcome emotions, people need to either use willpower, or to retrain their unconscious mind.
 
Willpower (or self discipline) sounds like the logical course of action and can be quite successful in the short term. It requires conscious effort though, and this can be draining. Also, if a trader trades because he thinks it is fun, then being disciplined takes away that fun. Using willpower alone is therefore an unsuccessful way of changing a trader’s behaviour.
 
Changing the unconscious mind so that the emotional drives change is harder but much more successful. It is a bit like changing the operating system on a computer; it is hard going but the computer works so much better afterwards.
 
The biggest obstacles to successful trading are desperation, the allure of “big money”, impatience, a failure to plan and a belief that the market is conspiring against you.
 
De…
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RobertBric avatar

My experience with people (I have a certificate in hypnotherapy) in general is that they will NOT seek the help of a psychotherapist (apart from smoking, losing weight and similar) because this kind of implies that something is wrong with them psychologically which is not something anyone wants to admit. So people struggle with their inner world in turmoil which turns their outer world into turmoil. Traders are people therefore we can expect a similar behaviour. Your offer of help is a nice gesture. I am interested in the response of the traders. Good on you.

CASPI avatar
CASPI 16 May

A good analysis. Good luck.

Mosomoso avatar
Mosomoso 17 May

Interesting, really interesting. Do you take clients over the phone? Is it possible to "train" someone in this way to trade successfully?

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41/94
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    - WHAT DOES FREEDOM MEAN FOR YOU?     - WHAT DOES SUCCESS MEAN TO YOU?     - WHAT DOES FAILURE MEAN TO YOU? Are Traders PROGRAMMED TO FAIL?... I wrote this article not as much about FAILING as it is about Your Successful Mentality of Gaining Financial FREEDOM...     I've noticed most people never think of FREEDOM.     Most people have an illusion of their Success because they never think beyond what they were thought from their Family, School Education, Society, Mass-Media, Work Environement, Life Experience... etc.     Most People don't realise that what they consider as "their SUCCESS" could be more often "THEIR BIGGEST LIFE FAILURE".     I SAY: NEVER SETTLE FOR LESS THAN WHAT YOU ARE ABLE TO OBTAIN.. AT ANY TIME... BEYOND TIME     You can win as much as Your GOALS try to obtain. If you run for Failure, Your will get it.    If PROS TRADERS, that have been trading FULL TIME for more than 5 YEARS.. are not yet financially FREE... From my perspective you can consider that all their experience could be a dis-advantage instead of an advantage... although most New Traders lose more money...     Could They Have "trained" themselves (or let themselves trai…
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13/73
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How to become a profesional trader   The main public for this article is ME, I’m going to re assure the knowledge acquired over the years and will read this over and over again, and maybe you can get some value from this, let’s begin. Are you ready to become a professional trader? What it takes to become a professional trader? Ready to hear the one million answer? It requires 10.000 chart hours, deep patience and study, passion and desire to work hard, practice, practice and more practice, and forget the money for a while, this is a marathon not a get rich quick. Disappointed? I hope not, here I will give you some keys to work hard and get to the next level. Why I say forget the money when the main objective of trading is to make money? Because think in money makes you stupid, shift your focus on the content and not in the process of actual good trading, think in money boost the emotions of fear and greed, the big enemies of trading, if you want to become a professional trader first you must understand what trading is.   What is trading?   Trading is psychology, yours and theirs. We have all heard the clichés about fear and greed. They rule the markets. In fact, that’s al…
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ritesh avatar
ritesh 28 Aug.

check out my articles too at http://www.dukascopy.com/fxcomm/fx-article-contest/?action=blog&user=ritesh

futures avatar
futures 29 Aug.

very good job, interesting article

cristianbbb avatar

Good luck ! +1

eagl avatar
eagl 29 Aug.

Good article, keep them coming!

viktoria75 avatar
viktoria75 30 Aug.

excellent article.

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