If you have the know-how, experience and a winning strategy then trading forex is likely to be a lucrative pastime. While you can make a lot of money from trading forex, it is vital that you keep your wits about you. Experts have termed the high you feel after wining “forex euphoria” and while a certain amount of excitement is expected when you’re winning, you need to ensure that it doesn’t get the better of you as this could result in bad trades that have a huge negative impact on your trading account.
Whether you have taught yourself the art of forex trading and developed your own winning strategy or embraced the tuition of an expert who is involved with trading forex for a living, opening your first forex account is exciting. You make your first successful trade. Score! You plan another, enter your bid and suddenly you have doubled your profits. Your confidence is boosted and you begin placing higher bids when trading forex and currency. Your gamble pays off and you feel like an expert. You place your next bid; but it drops. You place another one, and lose again. You’re confident that you can still turn the situation around but your next bid places you at a great loss. Your place your final bid, lose, and your account is emptied of all its funds.
You realise that you should have kept your head, after all you’re still in the position where you’re trading forex for beginners. You will make a profit from trading again, but take heed of these tips and you can avoid getting swept up by forex euphoria.
- Analyze your results. By paying attention to the actions that worked and those that didn’t will help you to develop winning strategies you can use when next trading forex.
- After a win take a break from your mt4 trading platform to give your head a chance to clear. You will be more focused when you determine and place your next bid.
- If you obsess over the impressive amount in your forex account you may become overly confident and make a hasty bid. Instead continue trading forex online or work on refining your trading strategy.
- Being confident may make you want to bid a larger amount. This puts you in greater position of losing that large amount. It is often better to change your positions periodically than on a whim.
Yes you will get excited when you make your winning bids. Stay aware of your emotions and keep them under control when trading forex, which will make for confident and smoother trades.