Fundamental Psychological Disorders in Forex Trading

Many people harbour the determination of winning but refuse to confess failures when trading. However, sometimes you win and sometimes you lose. Several psychological disorders hindering you from winning are listed as following:

1. Following suit blindly

This is an Achilles‘ heel for individual traders. They cling to others’ analyses and limited information due to their lack of profound understanding and personal analysis regarding the market which is, however, ever-changing. Sometimes the trend suddenly reverses after orders are placed, leading to an interrupted situation where even masters can be no exceptions. Therefore, dont trust anyone totally!

2. Hesitation

Numerous traders desire to be winners but never prepare for failures. Therefore, when hit by losses, they miss out stop-loss opportunities without forced liquidation in time. They wont regret until the trend worsens rapidly due to their reluctance to close positions after gaining profits. This case is mainly caused by insufficient capital. As such, anxiety and the incapability of following rules can be triggered by worrying gains and losses whether the order placed is profitable or not.

3. Being afraid of missing out

Transactions seeing a breakout, traders cannot find the most favorable timing to join the market until prices fall back to the breakout level.

However, some decide to participate in advance in case of missing out the opportunity when a breakout occurs. Unfortunately, they are bound to suffer losses soon after the market retests its breakout zone. They are overwhelmed by fears, only focusing on returns instead of risks!

Download WikiFX to get lessons from experts who have traded forex for over 20 years.