Talking about psychology of traders is the most difficult part of forex trading because it is abstract and cannot be calculated. It seems to be commonplace when they have difficulty controlling themselves. Which trader will not be tempted to buy when the price is down, also which trader are resistant not to sell when the price is high.
Most trader have experienced losses, even if they are small. Incidents like this are actually normal, especially novice ones. In fact, the losses in foreign exchange trading do not lie in predictions that are considered wrong, but rather in the psychology of traders controlling themselves.
Of course, it will not be that simple in describing the psychology. For a novice trader, conquering yourself is the hardest part compared to calculating making predictions. An accomplished trader is not only good at predicting currency movements but also good at self-control.
Greed and Revenge are Bad Psychology of Traders
One of the basic human traits, namely being greedy for anything, will never be satisfied. Greed seems to have become the main disease in foreign exchange business. Every trader has a tendency to earn more, especially when it comes to money.
Just by sitting at the computer for two hours, a trader can get 1 million, how about sitting any longer. This condition is always experienced by a novice trader. There have been many cases that many traders have gone out of business because they only indulge in emotions when doing this.
One of the bad effects of greed is a loss of profit. When a trader experience this, what they have in mind is definitely how to recover lost money, in the sense of revenge. Instead of cashback, there is a bigger loss.
Those who want revenge are sure to think about breaking even (BEP) in a short time. As a result, open positions seem forced even though the market is not supportive. Managing both mental and emotional levels is something that a novice trader must apply and learn from best forex broker.
Hesitating or Hasty
Nothing can be accomplished with a doubtful mind, and neither can forex traders. Doubts in forex trading will obscure the forex trading strategy that has been created, for example, opening a late position.
Apart from that, hesitation will also eliminate the opportunity to make big profits. Indeed, it takes a cautious attitude, but not hesitating. Regarding forex psychology for novice ones, this attitude or character should be avoided when trading.
The psychology of traders especially in novice traders, the difficult part is controlling emotions. In the sense of not being hasty in making decisions. It is very easy to predict the forex price, but in a hurry, all these predictions are scrambled.
Think calmly when you have to determine to sell and buy when the market opens. It needs the right strategy so that this activities can really pay off. The best strategies are usually generated through an in-depth analysis of the market.
Curious Nature in Traders
Traders sometimes still feel dissatisfied with what they get, even when they get big profits. Sometimes a big profit actually brings more curiosity. Imagine, just sitting in front of the computer for two hours can get 1 million, what if you sit longer.
Forex trading cannot be done like exchanging ordinary currency. Forex trading is now easier to do because it has been digitalized in such a way that they can submit trades to an automated trading system to avoid being curious.
To start it is not as difficult as one might imagine, especially for now. It's a good idea to choose a trusted broker before trading. Didimax forex broker can be your choice because we will teach you from scratch. With a lot of learning and practice using a demo account, you can become a successful trader.
After knowing the above, you can conclude that as a beginner trader, you have to be extra careful. Don't just indulge your desires, and lose money in the future. Understanding the psychology of traders can help you to be more careful in taking steps when trading.
