Saturday, April 07, 2007

The Emotions and Psychology of Learning FOREX

While anyone may enter this cash currency exchange market (FOREX) it is recommended that for beginners, a thorough education is gained before using your own dollars. A basic education can be gained via various methods such as online education sites, books, CD’s, seminars, online platforms and the experiences of a mentor. These days there are other methods of going into this business but I shall not cover them here as a basic education is the wisest way to proceed in the beginning before using the even the so called automatic trading. A well laid foundation gives confidence.

Various platforms also provide a very basic education and these may be used to “play” gaining experience in the “buy” and “sell” process. This forms no endorsement of any one platform and online research will reveal many but for ease of use one can be found HERE. It would be useful to familiarise your self with them. They can provide basics in learning and are very handy in practising while playing in real time without using “real” money.

It has been proven that many who go well on the practise run using the platforms can often fall flat once they start using their “own” money. The psychological triggers of using your own money affect performance. It has to be expected that you will have not only gains but losses. We can say you must try to be emotionally stable but with money that can be a difficult ask, so always but always cut your losses and never try to chase or add to a losing position. If you develop a passion for FOREX you can enjoy the game and succeed lucratively whilst enjoying some of the excitement it can ignite.

A book that is recommended is The Psychology of Trading by Brett N Steenbarger , a clinical psychologist who has an intimate knowledge of FOREX being a trader himself.

Labels: ,


Post a Comment

Subscribe to Post Comments [Atom]

<< Home