"I'm offended and I don't trade anymore..."
Quite often you can hear this phrase from traders who have given up and lost hope of learning how to make money on the foreign exchange market .
There can be many reasons for such a decision. These are insufficient knowledge of the trader, and unwillingness to be persistent in achieving their goal, low self-esteem and motivation of the trader, as well as the inability to cope with their emotions and nerves while trading on the .
Trader's psychologyHowever, it is the basis for a trader's success or failure in this high-risk and stressful market for the trader's psyche. However, "the devil is not as bad as they make it out to be", says a popular saying. In any situation it is possible to find a solution and learn to trade in the plus.
Resentment and anger at
I'll give you an example of a typical situation of resentment and even anger in a trader. The trader entered the market, having opened in one of the directions. The market did not go immediately in his direction, but started its movement against the position. However, the trader's stop-loss order was placed near an important price level. The market walked long and persistently near it, but had no power to break this level. In the end the market takes the last pip stop loss trader and, turning around, goes sharply in the direction of the original forecast.
What is the trader feeling at the moment? Very unpleasant feelings. Feelings of resentment, anger and irritation.
In this situation the most reasonable for the trader will be to stop trading, to make a pause. What can happen otherwise is rash, made under the influence of emotions trader's decisions on a new entry into the market. And, as a consequence, new mistakes.
Let's break down the concept of resentment and give methods of dealing with this feeling
Resentment - is an inner silent disagreement, with some outcome that seems unfair to us.
Causes of resentment - there are several. Conventionally, they can be subdivided into such components:
Intrinsic benefit. The trader is resentful that he took a loss and did not earn a profit, even though his forecast was correct.
Template thinking. If the market went according to your forecast, but you set your stop loss too close to its possible highs, is it the market's fault? You may want to reconsider your strategy for placing stop-loss orders.
Involuntary emotional reaction to the offense. You think this is unfair, naturally you will be offended and annoyed.
However, there is no justice or injustice for the market. The market is too big and it doesn't care where you had your stop-loss order, it just moves where supply and demand has determined it. Price movements are determined by mass psychology traders. After all, the market is a behavioral market. It's shaped by people.
Serious offense at something gives rise to internal tension in a trader. Tension in the trader's body disturbs mental and physical balance. It is better to release this tension, and a useful thing in this is physical pumping of the resentment.
What can you do if you are experiencing resentment?
1) Turn your head on and stop getting yourself worked up.
2) Exercise, stretch, do push-ups off the floor, physically exert yourself, it will help distract you.
3) Be surprised, as if in jest, at this event. Say "Oh?" and turn your head to the side with surprised eyes.
4) Hold your breath as long as you can. But don't forget to exhale. 🙂 🙂
5) Speak your resentment and you will feel much better.
6) Shift your attention to other things to do.
7) Make an outburst of the emotion of resentment and shift your focus. For example, write all the reasons for your resentment on a piece of paper and burn it. It would take a long time to explain what the secret is here. Try it, it works great.
Any psychological problem can and should be solved and overcome. Remember this.
I wish you the best of luck trading on e.