Most vital point in trading activity there is a psychological spirit of the trader. It is enough to tell that traders trading on the virtual account (with virtual money) often show quite excellent results, but at transition to real money their results strongly worsen. What does it happen? The same trader, the same quotations, the same used tools — and such different result. The answer is simple — in operation psychological factors. Working with real financial assets, the trader most strongly depends on own feelings of dread and the greed, which else name market engines. These two often opposite directed sensations do not allow to the trader to estimate simple and soberly a situation, in due time to close unprofitable positions or to fix profit.
The panic in the market leads to sharp changes of rates of exchange and very often such movement does not reflect the real processes proceeding in this or that economy of the world. Here pertinently to recollect definition for «collective mind»: the mind of crowd is equal to mind of the weakest representative of this crowd. And so far as concerns a considerable quantity of traders representing as private persons, and every possible investment funds, financial houses, banks the cumulative mood of this crowd is often subject to action of panic mood contrary to logic reasoning of the sane trader. And if we know the general psychological spirit success, our trade will sharply increase.
But while it was a question about «a collective psychological spirit». And if it would be desirable to see, know and use the general spirit for personal trade it probably to carry out, observing of reaction of the market to the events occurring in world politics, economy and the nature. It is much more hard to bridle own psychological spirit at the moment of making the choice on buy or currency sale. At making the choice, the beginning trader on one bowl of scales has an intuition, with emotions, on other bowl the unbiased knowledge deprived of an emotional spirit, leaning only on the facts and objectivity. What outweighs? Certainly, intuition! But the intuition of the beginner is not based yet on experience.
Thereof the choice is accepted on emotions — the main enemy and the assistant of the trader. How to learn to regulate the emotions, to minimize their influence when they disturb very much? The answer is to improve discipline of the trader. Only the disciplined trader can work in the market so much time, how many it is necessary for purpose achievement. Only the discipline will not allow to the trader to break under market influence and to leave from the market ahead of time. There are many modes of work on strengthening of discipline of the trader: fixed schedule of work, and a choice of time frames for work proceeding from the psychological features… But the most effective nevertheless is use of trading system.
Before you choose to make a forex investment or start forex trading yourself, better find a nice forex book and read more about the currency exchange market – this will save you from lots of troubles and traps.
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