Forex Trading Psychology

Getting Rid of Faulty Patterns

Details: Category: Forex Trading Psychology; Written by Dr. Woody Johnson

Are you plagued by out-of-control behaviors, meaning that you have said over and over that you won't move a stop, or trade without a plan, or chase a trade only to do that very thing again and again? Have you made promises to yourself to do that important thing for your trading like create a business plan, or learn and follow a strategy or keep a money management commitment...but you didn't? All of us have from time-to-time fallen through the commitment cracks.

Role Models and Mentors, They Can Make a Big Difference

Details: Category: Forex Trading Psychology; Written by Dr. Woody Johnson

"George really knows his stuff!" Harry said as he blew out a big sigh. "Why can't I do that?" he moaned. Harry had just exited the ES E-mini in what was another disastrous trade. He had again entered without a trade plan when he saw the price action on the 5 minute chart rocket up in a blastoff candle.

Blaming "Market Manipulators" For Losses is a Huge Obstacle to Success

Details: Category: Forex Trading Psychology; Written by EW Editorial Staff

In 1984, Elliott Wave International's founder and president Robert Prechter won the U.S. Trading Championship, setting a new all-time profit record of 444.4% in a monitored real-money options account in 4 months. In the average 4-month contest, over 75% of contestants, mostly professionals, fail to report profits.

The Psychological Utility of Technical Analysis

Details: Category: Forex Trading Psychology; Written by Joseph Trevisani

Today I am starting an occasional series on one of the most fascinating and essential topics in currency trading; the interaction between the psychology of the market and the decisions of the individual trader. I hope these observations are useful; reader comments are welcome.

How to Use Simple Psychology to Master The Forex Markets

Details: Category: Forex Trading Psychology; Written by George Hutton

So you've heard of forex, maybe you've been reading about it for a while, maybe you've recently learned of this system, which has added trillions of dollars in wealth to the world since its inception. You likely have some concerns. Perhaps you've even opened a practice account online. Maybe you've done OK, maybe you've been baffled.

Three Pervasive Myths of Trading Psychology

Details: Category: Forex Trading Psychology; Written by Brett N. Steenbarger

My work as a trading psychologist has provided me with a fascinating window on the factors that separate successful from unsuccessful traders across a variety of settings, from proprietary firms to investment banks to hedge funds.

Letting Profits Run: Becoming Your Own Trading Coach

Details: Category: Forex Trading Psychology; Written by Brett N. Steenbarger

My most recent post emphasized many of the basics that enable people to become their own trading coaches. For this last post in the series, let's apply those basics to one of the most common trading problems that people describe to me: the difficulty of letting profits run.

The Personality of the Trader: How It Affects Performance

Details: Category: Forex Trading Psychology; Written by Brett N. Steenbarger

A recent pilot study addresses the interesting topic of how a trader's personality affects his or her trading performance. The researchers focused on six personality traits and their impact upon trading:

A Personality Questionnaire for Traders - Parts 1-3

Details: Category: Forex Trading Psychology; Written by Brett N. Steenbarger

Recent research highlights the role of our emotional experience in our health, well-being, and job performance. The following questionnaire asks you to assess your emotional experience during your trading. Specifically, you'll be rating how often you've experienced the following feelings over the past two weeks.

How Large An Edge Do You Need For Daytrading?

Details: Category: Forex Trading Psychology; Written by Brett N. Steenbarger

In past posts, I have tried to capture what separates market pros from the less successful traders. I've also stressed the importance of tracking the market pros in short-term trading. There are many factors that contribute to trading success.