I Got Offended About Forex, so I am Not Trading Anymore

“Forex is a scam, and it’s impossible to make profit”, “Only serious people earn in Forex”, “A fool! “.

Let’s agree that these, and similar comments, are often heard from traders who given up hope of earning money in a Forex market and have given up trading.

There are a lot of reasons for that. It could be the trader’s lack of knowledge, or that they did not persevere when they should have done, or it could be that they were not sufficiently motivated.. The most important reason why people fail at Forex trading is their inability to master their emotions.

Having the right mindset is fundamental to success in Forex.

Let’s investigate which psychological factors will hinder you the most when trading, and how you can make sure the trade is successful.

Frustration, resentment and anger at Forex

There’s a typical situation, which in my opinion, is experienced by a lot of traders who become overwhelmed by their frustration, which gives rise to anger and resentment.

Here is a typical scenario: A person analyzing a chart in the morning, finds an opportune moment to make a transaction, and opens a position to one of the sides. Soon, the price is moving in a direction that is different to the opened position, and the trader’s exposed stop (Stop loss) becomes important to the price level. For half of the day the price was long, and was gradually moving to the trader’s stop. The market did not have the momentum to break any.further. Later in the day, the price reaches the trader’s stop loss and he closes his position with loss. Frustratingly, as soon as the trader has closed his position, the price turns back and moves strongly to the trader’s side forecast, which he made in the morning.

What is the trader feeling in such a moment? He or she is experiencing some very unpleasant feelings such as resentment, anger, annoyance and frustration. When experiencing emotions such as these, it would be prudent ta take a break, and not to trade until these negative emotions have subsided. In other cases, reckless positions could be taken that are based on emotions, causing more mistakes to be made.

Let’s see why those emotions arise and let’s find ways to face them.

Resentment is an internal silent conflict, a disagreement with some kind of result that seems wrong to us.

Which reasons cause resentment? Here are some of them:

1. Balk financial expectations: a trader is in offense because he made a loss instead of a profit, even though his prognosis was right.

2. Stereotypical thinking:. If a market was going in accordance with your prognosis, but a stop was too close (next to a possible price maximum High), is that a fall in the market? It is probably worth investigating your strategy because of stop location.

3. Involuntary emotional reaction: You think that it is unfair. Of course you will be offended and annoyed. However, there is no justice or injustice in a Forex market. It is a huge market. As far as the market is concerned, where your stop was is not important. The market follows the supply and demand at that moment. Mass human psychology regulates price movement, therefore, that is a behavior, not a static market, and it is a market formed by people.

Serious resentment causes an internal tension in a trader’s organism, which is experienced spiritually as well as physically. The best way is to remove that tension is by taking physical action.

What should be done?

1. Stop berating yourself.
2. Do some physical exercise, for example, 10 burpees, go outside for a walk, it will help to clear your mind.
3. Wonder at yourself and try to laugh at the situation. Say to yourself loudly: “Oh!” and surprisingly turn your head to one side.
4. Hold your breath as long as you can (but do not forget to inhale).
5. Loudly say to yourself what you think about that the situation.
6. Pay your attention to other things.
7. Try to write down everything that you feel on a piece of paper and burn it at that moment. Believe me, that works.

Remember that it is possible to cope with any psychological problem.

Take care and good trading.