Forex traders have various kinds of emotions and come in different psychological states during trading what certainly affected the final outcome of the commercial transactions. Every individual is subject to emotional changes in a given situation and when not traded. Psychological analysis of financial markets certainly has to include elements of this phenomenon in the overall analysis of market trends. It is a causal bond the emotionality of individuals with psychology mass which is a very important factor in the analysis of global financial markets. Psychological analysis from the point of common emotions Trader represents a kind of theoretical analysis where expert opinions differ fundamentally from lay experiencing various emotional states. The main difference consists in the fact that experts are ready to recognize and acknowledge a certain emotion. Then they can develop and implement specific methods for solving problems caused by these emotions. In addition to the fear that often occurs in novice and experienced traders with such a fear of loss. Related losses not only to reinforce the sense of fear, but may in the long run to create a strong emotion desperate. To manifests as a mental state trader in an effort to regain lost capital with no success. It can be said that the feeling of despair negative as well as euphoria or greed with the difference that occur after positive trade transactions. It is therefore very important that a trader knows how to recognize and define their feelings. It just may adversely affect the performance of trading and emotions after a negative aggregated trades, as well as after-related positive transaction, if a trader is unable to manage their own emotions. To be successful Forex trading every trader must be primarily defined by certain types trading within the meaning of true characteristics. In Forex trading may not be arbitrariness in the process of making investment decisions, analyzing market trends, as well as performing other operations vital to the profitability per business. Each style has its own characteristics, and that the trader recognized in some of them it is necessary to know well the details that determine the differences between styles, but also the similarities. In the process of trading it is possible to combine two or more styles, but it should not be done in an arbitrary manner, but in accordance with the needs of trade use compatible modes. It is therefore particularly important that every trader knows what type of trader belonging to define the style that best suits his sensibility, the way in which it can organize its operations in the Forex. It should be understood that trading style essentially represents a strategic business approach.
Scalping Trader style that is most exposed to stressful situations because trading takes place in a very short time frames (M1, M5, M15), where every second can mean a lot to profitability trade. The aim is to achieve Scalping dealer just a few pips usually with a larger number of lots, a daily carry 10 to 50 trade transactions depending on market conditions. Common mistakes in forex trading that appear at the trader with experience are possible due to oversights of the current situation. Rashness in making an investment decision or other similar reasons, although it has enough knowledge and skills. It would be too much to expect that such wrong moves just never happen. Although such mistakes at first sight is possible and can be corrected in the course of trade, however, may occur significant losses because they require great skill to trader should chase with sudden market fluctuations. One common situation in which the real error arises from excessive desire to be traded more frequently regardless of market conditions. Then trader opens positions and when they determine the most favorable moment for positioning trade. To make matters even worse, using the elements according to the rules of money management and risk controls, with too much certainty expect the realization of profit. Sometimes not all the relevant parameters of the trade are not sufficient guarantee of success if the moment of opening positions too susceptible to market fluctuations, so always advise extra caution in the implementation of specific strategies according to records made the analysis. The best way to avoid such errors is to monitor the validity analyzes were made of the market, and that in emergency situations could properly react.
Daily Trader Daily or Intraday, as they are popularly called, trader all their trade transactions within a day without leaving the overnight open position. That it could achieve trading by short intervals, usually in H1, M30, and long-term analysis looks at the D1 and H4 charts so that their trading limits on daily work. Frequently achieve two to five transactions per day or with moderate size trades. For each trader, it is important to understand the relationship between risk and profit in an adequate manner and that this relationship should be proportionately greater in favor of the winning commercial transactions. It is quite normal to expect that all to trades can’t always be achieved with the profit. Thus, control of risk in the global sense means that every trader should be aware of the fact that making a profit on the trading account is a good (positive) risk-return (Risk to Reward Ratio). At first glance it seems simple. In the process of trade Many traders avoid the obligation to carry out budget relations projected gain in relation to the part risk capital for each trade. Money management must always be up to the task. So, you should always have room for correction trade. It can be possible earlier out of position, waiting for the market to come back in the direction of the original trend, decreasing the size trade on basis of optimal projection trade. Size trade must be adequate to profit on the trading account and trading in line with main trends.
Position Trader Style traders who follow long-term trends as well as the length of his trades accordingly has an extended effect of duration (number of days, weeks, and even months). The methodology of this method of trading is popularly known as buy and hold. It is important feature of the possibility of ignoring minor fluctuations in the price of the period of unstable markets that are “drowning” in the wave of the main trend that has a long term effect. As a separate subspecies of this style of trading is allocated (long-term investor) those trade transactions practically have a duration that corresponds to the generational investment horizon, so that they are positioned to trades with projected realization for several years. Position Trader with a long-term business perspective is realized as a rule the most profitable, and is characterized by continuity of operations that is based on sound fundamentals of investment capital. If for example, take the situation that trader trades in Position style (trading in line with the long-term trend) and that has an inexhaustible source of coverage in your account (do not use the financial support that. Effective Leverage is 1:1) was not required to concerned about the relative risks and profits. However, most traders traded (usually Leverage is 1:100 or 1:200 or more) use of a favorable risk/reward relationship is imperative each trade.
Which Type Of Trader You Are Conclusion
By analyzing the feelings of despair in Forex trading can talk about the closest connection with gambling philosophy. A trader can adopt as a negative trait. The desperate attempts to recover the lost money repetition of playing the role of money with the expectation of the happy outcome inherent only to gamblers. Traders make their investment decisions in the strategic planning process. If a particular strategy does not yield good results in a number of trades may be treated in two ways. First you should check the applied strategy because it may not fit the selected investment instruments traded. It should definitely be on the alert because the strategy generally are not universal for all currency pairs, at all time intervals and in all kinds of market conditions. Another important fact is the rule that indicates the trader’s obligation to the chosen strategy is applied consistently and disciplined. Trader should try to find fault with cool heads in their way of investing. Since it is very difficult to overcome the emotion of despair should be noted that a trader must be aware that negative results are quite possible outcomes in the investment process and that such a perception Forex trading will never lead to despair. Performance in the Forex is reflected in a greater sum of positive results in relation to losses, which can only be made systematic and methodological work. It is noteworthy that the entire area in trade analysis relating to risk management within business strategy is money management. The rule is that every investment a separate business venture that requires the use of certain strategies. Strategic planning any investment decision before entering the trade position is the right way to overcome any adverse impact of negative emotions trader.