Forex, Fibonacci, Pivot Points
Trading Forex With Fibonacci

Wednesday, November 30, 2005

How to avoid making psychological mistakes while currency trading

Amelie Gam is an Internet writer for Forex Trading Plus. She just wrote an interesting article on psychological aspect of currency trading.

According to Amelie, a trader exposes himself/herself to the higher risk of loss when he or she :

- doesn't control human emotions;

- acts upon fear or hope without basing own feelings on real facts;

- exploits other people’s human emotions (people who are constant in their mistakes can not gain success and earn money);

- is not disciplined, doesn't make plans, doesn't follow strategies, doesn't apply mathematical and money management principles;

- doesn't run only profitable trades and doesn't try to cut losses as fast as possible;

- uses rumors and advice without being certain of their authenticity and quality.

To be successful you have to think independently of the majority and stick out from the crowd. Currency trading is safer than other trading methods, but if you want to have an edge over other competitors than try to be wise and research first, study other people’s behavior and choose from them only the best.

You can read Amelie's whole article "To Be or Not to Be a Psychological Currency Trader" at http://ezinearticles.com

Stan
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