Forex trading is a psychological battle against human weaknesses

Presumably many friends who do foreign exchange trading have this experience: when they are not doing foreign exchange, they are very accurate in watching the market and predicting future trends, but when they have a list in hand, they are not so sensitive. Why? This is the role of psychology.

Because when we have an order in our hands, we always consider it in the direction of our own order, which is also the subjective psychology of human beings. If we make a mistake, we will also have the psychology of luck, always feeling that the market will go in the direction of our order. Keep staring at the market, and the market will often not disappoint you at this time. When you are about to see, it will make several fake moves in the direction of your order in a row, so that you believe that your judgment is correct, but often this time is also the beginning of tragedy. Admit that you mistakenly think that you are not wrong about the market. When you are proud, the market trend pushes up or down a large part in the opposite direction you expect, leaving you confused. You don't know whether to cut or stay. It feels too bad to cut the meat out. Take it and don't grasp the direction of the next market. There are always two forces in my heart. If you repeat this a few times, your mentality will collapse. Just talk about making money and not losing money.

So how can we win this psychological battle?

First of all, we should maintain a calm state of mind to face the ups and downs of the market, and we should try our best to control our emotions when facing the transaction data of our own account.Don't be complacent because of profits, and don't be frustrated because of losses. Only in this way can you maintain your correct judgment of the market and make rational investments.

Secondly, you need to continuously learn, improve your professional ability, and find the most crucial point at different stages.In fact, we also mentioned just now that no matter what kind of product it is, the price formation mechanism is the relationship between supply and demand. When the supply exceeds the demand, the price goes down, and when the supply is less than the demand, the price goes up. It's very simple to say, to judge whether the current stage is oversupply or supply is less than demand requires you to make a very accurate judgment, and the supply and demand relationship changes dynamically at every stage. In addition, there are many factors that affect a product. You need to remove the messy factors and find the most core factor to determine the direction of the market, so the requirements for professional knowledge are also very high. That is to say, you need to keep learning, and only after you have a very accurate judgment of the market can you win.

Finally, it is recommended that you must lower your psychological expectations for trading profits.Because once expectations are too high and cannot be achieved in the short term, no matter how good the mentality is, it will be messed up. Do anything step by step, remember to be greedy for more than chewing.