The Craziest Things That Forex Traders Do to Sabotage Themselves

Forex trading can be a very stressful activity and so many traders inevitably go crazy and do things that are against their own best interest. Here are some of the worst things that you can do to sabotage your trading activities.

1) Trading to get ‘revenge’ against the markets.

Nobody likes to lose money in the forex markets, but even the best trader suffers from losses. But there are some traders who take losing trades personally and so they go back to trading with the attitude that they will show the markets who is boss. Thus, they make bigger trades than they normally would in the expectation that they would make equally big profits. Unfortunately, more often than not, these poorly thought out trades inevitably result in big losses. The only way to deal with this issue is to learn how to admit defeat and stop trading until you get your emotions under control.

2) Letting your decisions be guided by your past few trades.

The traders who suffer from this problem allow themselves to be influenced by what happened in the last trades they made. For example, if they have experienced a run of losing trades they become too ‘gun-shy’ and don’t take advantage of trading opportunities that they see. On the other hand, if they have enjoyed several winning trades, they behave a little more recklessly, believing that they can’t lose. The best way to deal with this is to stick to your system and not make the assumption that the trades you are making now are influenced by the ones that came before it.

3) Giving in to their emotions. T

he traders who commonly suffer from this problem are those who either don’t have a trading system or subconsciously don’t believe in the system they are using. Thus, they tend to give in to whatever emotion they are feeling at the time. Thus, if they are feeling panicky, they may withdraw from the markets and choose not to trade or be paralyzed instead of acting when they see a trading opportunity. When they feel euphoric, they may act reckless, feeling that there’s no way they can lose money on their trades. The best way to avoid this problem is simply to eliminate the role of emotions in your trading decisions.

Content References:  http://www.admiralmarkets.ae/education/