Foreign Exchange Sydney Trading Psychology

Foreign Exchange Sydney Psychology

This article looks at the winning and losing attitudes of traders in the foreign exchange Sydney market.

The foreign exchange Sydney trading market can be a very challenging market to enter.  To succeed in this market, it is necessary for you to be strong mentally and emotionally stable.  You need to be in absolute control of your emotions at all times.  This attitude can be achieved by looking at your attitude as regards winning and losing.

Winning Attitudes

Determination

You must be determined to overcome any obstacles you face whilst trading.  Your main reason for entering this market is to make money and you should have the determination to achieve that.  To do this effectively, you need to educate yourself in the workings of the market, practice on a regular basis and apply the concepts you learn.  You should maintain the systems you implement and not allow negative thoughts to interfere with your trading.

Confidence

When you are well prepared for the task at hand, you will be confident about your abilities.  You are aware that you will be able to achieve excellent results because you have prepared the groundwork for the task you are about to face.

Novices in this financial market can achieve this winning attitude by learning as much as possible about forex trading and practicing their trading methods and strategies.  This can be achieved by opening demo accounts and using it for practicing purposes.  A demo account provides you with all the facilities you would have in a normal live trading account.  This allows you to place orders and watch the movements whilst the market is active.  By doing this will ensure that your trading strategies are effective and profitable.  You will be able to determine the profits and losses applicable to your trades.  It is recommended that you trade with a demo account for a period of at least 6 weeks before you move on to a live account.  By that time you should have the confidence to enter a live market environment.  You will be comfortable in the knowledge you have gained about the market and the results that applied to your demo account.

Losing Foreign Exchange Sydney Attitudes

Fear

The one fear most traders have is failure.  This distorts their perception of the market.  Fear can become mind numbing and will prevent you from absorbing information and this will limit the choices you have.  This happens when traders decide to extend their losses and cut short their profits.  To overcome this situation, you should apply your trading plan and strategy and stick to it.  If you are comfortable with your system, you should enter the market with confidence.  You also have to accept the reality that you will experience both profits and losses in this market.

Greed

This financial market offers you the ability to make huge profits in a short period of time.  This instils greed in many traders and they start imagining all the money they could make.  This often becomes an unrealistic expectation of their abilities and the market.  Greed generally steps in when a trader is on a winning streak.  They decide that if they enter more positions, their profits would be larger.  This is not always the case.  The same attitude takes over when traders are in a losing position.  They think they can make up their profits with the next trade and five trades down the line they have actually lost much more.

 

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  • Self-Education-Fortune


    Get a free Forex PDF PLUS:

    • 14 Video Lessons
    • Free One-on-One Training
    • A 5000$ Training Account
    • In-House Daily Analysis
    • Get FULL ACCESS
    Become a forex trader!
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