8 Tips To Stop Anger and revenge in Forex Trading
Making "anger" trades after either having a bad loss or making a bad decision is known to every trader, a beginner and a pro. As soon as emotions get a grip of a trader, useless trades are almost inevitable. Anger and revenge are so fatal that trades can wipe out a forex trading account within minutes. How to identify what triggers emotional trader to trading and what is the way to get out of self-destruction immediately pass with a minimum of losses?
Emotional trades in forex happen often and whenever the trader looses control, the account gets wiped out fast. Even with reliable trading strategy, strict discipline and good money management it is easy to become emotional after making
The biggest problem of all is when it comes to crazy trading, you do not even know you are doing it! So it is up to you to come with a right technique to snap out of it.
Below are tips on how to stop the self-destruction before it actually began:
1st Take a Break After three consecutive losses the best thing you can do is to quit trading for a day. Some traders even have a "punishment" included in their trading plan: a lost trade, no forex for a week! Market is not going to disappear and tomorrow is another day with forex million opportunities. Instead of anger trades, your best option is to take a breath and give yourself a break.
2nd Decrease Size
Make a substantial decrease in size traded. This way you will be able to take your mind off serious trading for a while and become sane again. Give yourself time and go back to appropriate size trading only when you are truly ready.
3rd Add Money You Did not Win
Consider putting the amount equal to the winning trade you did not take in your forex account. To see the money in the account will make you feel better and think rationally again.
4th Add Amount You Lost
If you lost a trade, you might want to add the amount you have lost back to the account. It is surprising how easy it is to become normal again when you do not see your account with losses.
5th Use Visual Effects!
Make a poster or a note which will help you to remember not to make irrational decisions after bad trades. The note will help you to stay rational, take only the trades that you fully understand and pass on all the rest.
6th Trade With Reason
Psychology is one of the most important factors influencing success or failure in forex trading. Make sure that you have right psychological reasons to enter a trade.
7th Be Precise Military
Be disciplined. In fact, be disciplined army! It is important to enter the forex market only when all of your criteria are met. This way emotion has nothing to do with your decision to enter a trade.
8th Confess and Talk It All Out Confess about your losses to someone nearby or even over the net, a fellow trader or someone who can understand your pain. Talking helps to free your mind from negative thoughts about the loss and bring you back to reality and objectivity.
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