Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Johnathon

The Best Mindset For Trading Forex

Recommended Posts

Today's article is going to touch on a subject most traders never even consider working on improving. Ironically this is the very same thing that always with out a doubt stops them from creating consistent profits from the market. I am talking of course about trading psychology and the mistakes traders commonly make.

 

 

Common emotions

Professional traders know trading is very much a matter of having control over one’s mind and emotions. Some of the more common psychological mistakes are;

 

- Fear: of losing, being wrong, missing out etc

 

- Greed

 

- Boredom

 

- Revenge trading

 

 

Fear

Traders experience fear in a lot of their trading experience. Fear can be brought in by simply placing a trade or when a trade goes into negative territory. This fear can be crippling for a trader and can lead to that trader being frozen.

 

Normally fear is a result of the trader either risking too much money or not having a sound trading plan. Traders that risk too much will tend to always worry with fear as they know it is only a matter of time before their account is crippled.

 

Fear can be hard to banish. Traders can get rid of this awful feeling by learning a solid trading method as well as very sound money management techniques. Traders are less likely to be in fear mode if they are risking only a few % of their accounts and they know they will be able to trade another day.

 

Trading with only money that a trader can afford to lose is also likely to limit the affect fear has on a trader’s mental state. Never ever trade with money that is supposed to be for something else such as rent or food! Anything can happen in the Forex markets and trading with money that one cannot afford to lose is a sure way to being frozen with fear.

 

 

Greed

Greed is trait that brings many traders undone. The feeling of making a lot of money in a short amount of time appeals to a lot of people. This then increases the trader’s appetite to risk too much, on too many trades and bingo their account is crippled!

 

Another all too common situation is the trader in the winning position and is up a tidy sum of money. Instead of taking the money when the market makes it available the trader hangs on looking for more and more! You can guess what happens……… Yep the market turns and the trader is left with a loss.

 

I have a motto and that is “Always leave some for the next guy”. I never look to pick the bottom or the top instead looking for a logical place price will turn. I place my take profit a few pips above or below this level as to make the chances of my target getting hit a lot higher. When the market makes profit available to you, take it and move on to the next trade. There will always be another trade!

 

Boredom

Forex trading is not a form of entertainment. It is a business! When new traders are bored they will quite often turn to the markets for excitement. This in turn tends to lead to over trading. They want to feel the rush of being in a trade so they place just any old trade.

 

Do not fall into this trap. Have set times that you scan the markets for setups. As soon as your done, turn the computer off and do something else. Do not look to the market to fill the feeling of boredom.

 

 

Revenge Trading

Quite often when amateur traders lose a trade and money, they will look to make that money back straight away. This is regardless of whether there is a viable trade to be placed or not. This then leads to the trader losing more money and on the cycle goes.

 

Trading is a random event. No matter how good the setups look you just don’t know which trades will be the winners or losers. If you have a proven edge on the market you know that over a large sample size of taking only the viable setups you will be up. Do not take average trades as they decrease your edge on the market.

 

When you place a losing trade move on and look to the next trade. You should definitely learn from the trade but start to look at the market as a random event.

 

Two traders can have the exact same method with all the same equipment. One trader makes money consistently and the other losers. Why is this? It’s because the trader that makes money has mastered their beliefs and frame of mind. They have learnt to deal with the problems detailed in this article.

 

Trading is all about dealing with your emotions and subconscious beliefs. If you can start to work on your state of mind whilst trading you will increase your edge in the market.

 

 

I hope you have enjoyed this article and can implement some of the thoughts and strategies into your own trading.

 

Safe trading,

 

Johnathon Fox

Share this post


Link to post
Share on other sites

 

Important comment. With a 24-hr market it can be advantageous to want to trade 20 of the 24 hours. Instead, focusing on one time block or a few shorter blocks helps to keep me fresh and focused and only trading during the most actionable times.

 

Good trading is boring, but boredom trades are costly.

Share this post


Link to post
Share on other sites
Important comment. With a 24-hr market it can be advantageous to want to trade 20 of the 24 hours. Instead, focusing on one time block or a few shorter blocks helps to keep me fresh and focused and only trading during the most actionable times.

 

Good trading is boring, but boredom trades are costly.

 

Yes,

 

a lot of traders fall into the trap of thinking that the more trading they can find and fit in the better. Just because the market doesn't close doesn't mean we have to sit and watch it 24/7.

 

Having times to scan for trades that are set and in a routine can help traders a lot!

 

Regards,

 

Johnathon

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Similar Content

  • Topics

  • Posts

    • TDUP ThredUp stock, watch for a top of range breakout above 2.94 at https://stockconsultant.com/?TDUP
    • TDUP ThredUp stock, watch for a top of range breakout above 2.94 at https://stockconsultant.com/?TDUP
    • NFLX Netflix stock watch, local support and resistance areas at 838.12 and 880.5 at https://stockconsultant.com/?NFLX
    • Date: 8th April 2025.   Markets Rebound Cautiously as US-China Tariff Tensions Deepen     Global markets staged a tentative recovery on Tuesday following a wave of volatility sparked by escalating trade tensions between the United States and China. The Asia-Pacific region showed signs of stability after a chaotic start to the week—though some pockets remained under pressure. Taiwan’s Taiex dropped 4.4%, dragged lower by losses in tech heavyweight TSMC. The world’s largest chipmaker fell another 4% on Tuesday and has now slumped 13.5% since April 2, when US President Donald Trump first unveiled what he called ‘Liberation Day’ tariffs.   However, broader sentiment across the region turned more positive, with several markets rebounding sharply after Monday’s dramatic sell-offs. Japan’s Nikkei 225 surged over 6% in early trading, rebounding from an 18-month low. South Korea’s Kospi rose marginally, and Australia’s ASX 200 gained 1.9%, driven by strength in mining stocks. Hong Kong’s Hang Seng rose 1.6%, though still far from recovering from Monday’s 13.2% crash—its worst day since the 1997 Asian financial crisis. China’s Shanghai Composite added 0.9%.   In Europe, DAX and FTSE 100 are up more than 1% in opening trade. EU Commission President von der Leyen repeated yesterday that the EU had offered reciprocal zero tariffs on manufactured goods previously and continues to stand by that offer. Others are also trying again to talk to Trump to get some sort of agreement that limits the impact.   Much of the rally appeared to be driven by dip-buying, as well as hopes that the intensifying trade war could still be defused through negotiations.   China Strikes Back: ‘We Will Fight to the End’   Tensions reached a boiling point after Trump threatened to impose an additional 50% tariff on all Chinese imports unless Beijing rolled back its retaliatory measures by April 8. ‘If China does not withdraw its 34% increase above their already long-term trading abuses by tomorrow... the United States will impose additional tariffs on China of 50%,’ Trump declared on social media.   If implemented, the new tariffs would bring total US duties on Chinese goods to a staggering 124%, factoring in the existing 20%, the 34% recently announced, and the proposed 50%.   In response, China’s Ministry of Commerce issued a stern warning, stating: ‘The US threat to escalate tariffs is a mistake on top of a mistake... If the US insists on its own way, China will fight to the end.’ The ministry also called for equal and respectful dialogue, though signs of compromise on either side remain scarce.   Beijing acted quickly to contain a market fallout. State funds intervened to support equities, and the People’s Bank of China set the yuan fixing at its weakest level since September 2023 to boost export competitiveness. Additionally, five-year interest rate swaps in China fell to their lowest levels since 2020, indicating potential for further monetary easing.   Trump Talks Tough on EU Too   Trump’s hardline approach extended beyond China. Speaking at a press conference, he rejected the European Union’s offer to eliminate tariffs on cars and industrial goods, accusing the bloc of ‘being very bad to us.’ He insisted that Europe would need to source its energy from the US, claiming the US could ‘knock off $350 billion in one week.’   The EU, meanwhile, backed away from a proposed 50% retaliatory tariff on American whiskey, opting instead for 25% duties on selected US goods in response to Trump’s steel and aluminium tariffs.     Volatile Wall Street Adds to the Drama   Wall Street experienced wild swings on Monday as investors processed the rapidly evolving trade conflict. The S&P 500 briefly fell 4.7% before rebounding 3.4%, nearly erasing its losses in what could have been its biggest one-day jump in years—if it had held. The Dow Jones Industrial Average sank by as much as 1,700 points early in the day but later climbed nearly 900 points before closing 349 points lower, down 0.9%. The Nasdaq ended up 0.1%.   The brief rally was fueled by a false rumour that Trump was considering a 90-day pause on tariffs—rumours that the White House quickly labelled ‘fake news.’ The market's sharp reaction underscored how desperate investors are for any sign that tensions might ease.   Oil Markets in Focus: Goldman Sachs Revises Forecasts   Crude prices also reflected the uncertainty, with US crude briefly dipping below $60 per barrel for the first time since 2021. As of early Tuesday, Brent crude was trading at $64.72, while WTI hovered around $61.26.   Goldman Sachs, in a note dated April 7, lowered its average price forecasts for Brent and WTI through 2025 and 2026, citing mounting recession risks and the potential for higher-than-expected supply from OPEC+.       Under a base-case scenario where the US avoids a recession and tariffs are reduced significantly before the April 9 implementation date, Goldman sees Brent at $62 per barrel and WTI at $58 by December 2025. These figures fall further to $55 and $51, respectively, by the end of 2026. This outlook also assumes moderate output increases from eight OPEC+ countries, with incremental boosts of 130,000–140,000 barrels per day in June and July.   However, should the US slip into a typical recession and OPEC production aligns with the bank’s baseline assumptions, Brent could retreat to $58 by the end of this year and to $50 by December 2026.   In a more bearish scenario involving a global GDP slowdown and no change to OPEC+ output levels, Brent prices might fall to $54 by year-end and $45 by late 2026. The most extreme projection—based on a simultaneous economic downturn and a full reversal of OPEC+ production cuts—would see Brent plunge to below $40 per barrel by the end of 2026.   Goldman noted that oil prices could outperform forecasts significantly if there was a dramatic shift in tariff policy and a surprise in global demand recovery.   Cautious Optimism, But Warnings Persist   With both Washington and Beijing showing no signs of backing down, markets are likely to remain volatile in the days ahead. Investors now turn their attention to upcoming trade meetings and policy decisions, hoping for clarity in what has become one of the most unpredictable trading environments in recent years.   Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Andria Pichidi HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • CVNA Carvana stock watch, rebound to 166.56 support area at https://stockconsultant.com/?CVNA
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.