Part III - Psychology
· Revenge trading
Revenge trading happens after you as the trader suffer a significant loss. Rather than going back to your plan and seeing where you went wrong and make sensible decisions around the incident, you will jump straight back into a blind trade .And that’s when things become really messy and challenging for you to recover.
Angry, and determined to come out on top, the traders will find themselves in one of two scenarios. They will either end up losing their money in a blind trade, making their losses even bigger, or they will manage to come out on top, and simply reduce their loss.
So with that being said, never trade what you feel but rather what the markets are showing you and most importantly, STICK TO YOUR TRADNG PLAN.
· Greedy trading
Greed trading happens when you aren’t happy with the amount of money you are going to make on a specific trade when it hits your take profit. Instead you remove your take profit (TP) hoping it will give you to even more profits. Usually when you do this your trade will turn against you and either hit your Stop Loss (SL) or even worse, blow your account.
· When in doubt
When it happens that you doubt your trade or you are contemplating whether you must take the trade or not is because you don’t know if the trade will be bullish or bearish or you are not sure about any news events happening that might have a positive or negative influence on the pair you are trading. The best thing you can do is to trade with confidence. If you are unsure or doubtful rather wait for a better scenario or better entry where according to technical- and fundamental analysis you can enter the trade.
· Fear after loss
Just because your trade didn’t work out the first time doesn't mean your way of trading is incorrect. There might have been big news that specific day that you didn’t know about. So when you’ve taken a loss go back to the drawing board analyse, implement proper risk management and stick to your trading plan.
Patience is one of the most important traits to have when you want to become a professional forex trader. Instead of entering a trade too early one should wait for your setup to play out by allowing price to reach your entry spot making your trade less risky especially when your account balance is not as big.IN THE LAST SECTION THERE IS A VIDEO.