Translated from Russian by Google Translate
2 Сентябрь 2009

Emotions and trade Forex is not compatible

All forex trading involve emotions. From nowhere they can not avoid it, they will always be with you as if you did not try. It is the emotions and cause all the problems associated with loss of funds. Of course, there are many other reasons why trade forex is unprofitable. But, as a rule, in anticipation of any loss is always an emotional outburst, in which a trader makes a lot of mistakes. Therefore, it is assumed that emotional state is dictated by the condition for the realization of a successful trading strategy on the foreign exchange market. It is for this reason that we are not saying that emotions can get rid of. No, impossible. But they can and should learn to control.


The peculiarity of the currency market is that successful traders are those who do not base their trading decisions on emotional and should be carefully thought out strategy that takes into account all the nuances, including the psychological. Note that any forex trading can not be deprived of the psychological aspect, but the craftsmanship is evident in the ability to create a coherent mechanism, a sort of balance of common sense and the ability to reasonably take risks in extreme situations. Any bust in one of the parties may result in imbalance, and as a result, an unprofitable transaction.

We believe that for any trader is no secret of the fact that the FX market is extremely volatile, which is usually dominated by emotions. In many textbooks for beginners states that one of the important points that should be taken into account when preparing to trade - is to develop your own trading system. This approach does increase your chances of success, but to create a trading system must accumulate their own knowledge base. You must not know firsthand all the nuances of the existing trade in the currency market. The trading system tells you when to enter the market and out of it. In addition, the ultimate goal of creating the trading system is the desire to maximize profits.

If you have recently started to trade forex and are already planning to create its own trading system, the best way in this case would create a system built on the basis of technical analysis of historical data. Such a system is the most powerful tool for market analysis and decision making. Most experienced traders use such trading system, and it is worth noting that the trade quite successfully.

By the way, has repeatedly had occasion to talk with various traders, who trade using the system. That total, which can be noted in the views of these people - this is especially the collision of emotions and mechanics. Many recognized that in many cases where breakdowns instinct for survival and the desire to close the position, and trading system in such a situation signaled the contrary, it is the signals given by the trading system proved reliable.

What it might say? This suggests that the trading system should be laid your strategy, your vision of the market and therefore you should carefully «обкатать» it before you trust its signals. Only after the system itself Recommend the positive side, it can be trusted with the levers of commerce. Here it means a clash of interests: emotions or mechanics? The main advantage of the trading system - is its lack of emotion. She has a clear installation and should be spelled out parameters.

One of the important criteria of efficiency trading system is the performance of successful entrances and exits from the market. On how well you will enter the market, will depend on further development of the situation. Develop your own strategy for entry and exit, and implement it in the trading system. What are the criteria you should consider and how to act, we will see below.

What conditions must accompany the entrance of the market?

For example, in some cases it can be concluded that when the price of the currency falls by more than 10 points under certain circumstances relating thereto, then such development should serve as a signal for opening long positions. After this it is necessary to analyze similar situations in different time sections for various currency pairs and choose the best option.

How many currency pairs are used for trade?

Practice shows that trading forex is peculiar that the market is related currency pairs. These currency pairs are dependent on the fluctuations of each of them. It is for this reason, when one of the currency pair begins to fall, or part of the growth phase, it will affect the related currency pair. What we are saying? Besides, that can be traded as one currency pair, and a few. And it can be done equally effectively. Everything rests on your ability to link disparate elements into a single structure.

What factors can afford to change his mind?

Although the currency market forex usually moves in certain predictable patterns, there are always exceptions to the rule. These exceptions are separate versions of the trends within these patterns. If you consider these factors, it must take into account, when you really need to bring the situation under his personal control and make some correction, but when you have to trust the testimony of the trading system. But be careful, in doing so. Emotions are too often can fill up your cup of patience, the consequence would be untimely or inappropriate intervention.

As you can see, there are many nuances that should be considered when building your own trading methodology and establish on its basis, the trading system. The common thread running through all of the above should read your perseverance. If you’re continually dedicate themselves to this work, the result will be forthcoming, and even the tangle is unraveled over time.