Senin, 28 Juli 2008

Psychology of the trader

One of most trading prominent aspects is psychological preparation for trade on financial markets and market FOREX. For many traders the psychology is, perhaps, the most basic problem, to overcome which is received not by all.

It would seem, all is very simple - has purchased on a maximum, has sold on a minimum, has put a round sum in a pocket. Basic your problem and all that you should do is to reduce the losses and to find the trading system, which will allow to earn more than to lose.

Reading the best and known books from eminent traders in whom they paint advantages of indicators and do the application that the big money earns, not leaving from the house. You are signed on journals, dispatches in which under reports all looks very beautifully and harmoniously. You speak to yourselves: "I am able to do it, I am ready to real trade. I use the savings and, trading, I will transform them into millions". So, you are going to to do the millions and to live "a beautiful life"! You purchase the last trading system which promises the big profit. Any spending of time for a demo-trade or for development of your trading skills - you should start to gain money here and now because the income is necessary to you and you wish to show to all, that you have succeeded.

But all is illusion which traps so many beginning traders. The validity consists that is very difficult to trade with constant profit. Actually, 90 percent of all traders lose money in trade! The majority of beginning traders is lost by the money within the first 3-6 months. So why trade is so difficult and dangerous to your purse and health?

Responsibility, discipline, judiciousness, concentration, persistent job, practice and time is required to become the profitable trader. It does not depend on trading systems because the best trading systems are a by-product of reliance of the trader. The beginning trader should aspire to develop the reliable trading approach based on its belief and to carry out the strict control over risk and proper management of capital. The trader should have discipline to operate itself and the trade. Only for one this reason leaves many beginning traders. Still much depends on struggle against the psychology and the reaction to market events which clear up fear and greed.

To work over itself, overcoming difficulties hard, but it will help you with trade and becomes a primary factor in job in market FOREX, helping to make instant correct decisions and not to become despondent or euphoria at losses and profits.

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alitergalen mengatakan...

The foreign exchange market (Forex) is the largest market in the world for the trading of currencies.