One Big Factor That Determines Success

If you have been trading for a while, you must have realized that
forex trading is a lot dependent on psychology.

You need to have a stable mind when you login to your trading
station. You should be free from greed or fear so to say.

Few days ago, one of my trader friends who just started forex trading
had a huge loss of $5,000. It was disappointing. And naturally
called for a deep analysis.

To understand what happenned, I started asking him some questions
and tried to get to the root of the issue.

We talked for about 1 hr, but that helped me understand some of the
mistakes he made. And the root cause of all these mistakes was-

"Trader Psychology"

It is very common for traders to ignore all laws of money management.
And it is done in various different ways.

Some, will not place the stoploss, some after placing stop loss
will push the stop loss away once the trade starts going
negative. And some will keep adding to the losing position.
Never Add To LOSING Trades.

It is not that these traders are not aware of money management,
most of them do know about it. And on demo accounts these principles
are duly implemeted by them.

But when the real money is on stake, the aspects of greed and fear
start playing their role! And then the "Trader Psychology" gets
effected.

And this results in huge losses, like my friend had.

So, always follow the discipline!! It is a must to succeed in
trading forex.

Remember, a losing trade with good discipline is much better
than a profitable trade with no rules!


To your success,
Hassan
www.forex-riskmanager.com