what is psychology?

How the way you think what happens everyone thinks from a different way. A person, let's say he is in police his psychology is different he is trained to think that way. As a driver his psychology is different he sees the road differently if he goes somewhere.

Person if you are swimming, in a swimming pool your psychology is different you have to move your arms and legs. Doing anything in life a student’s psychology is different a businessman’s is different and a job person has different. So trader’s psychology especially forex trader, how it should be? What are the challenges? I will tell you Four points.

Point Number One
Reset Yourself

Whenever the trader comes always comes for revenge every time thinks the old 300-dollar loss should take it back me that 5000-dollar loss should get it back. That loss in Nifty of 50000 should take it out and we never come to do fresh trade.

We always come for recovery and recovery, we keep all expectation to this trade of which outcome is not in your hand. You can’t EURO/USD, can’t pull USD, JPY that you fall downward can’t say Gold to go upward.

Can’t push DOW JONES means we don’t have outcomes in our hands. What do we have in our hand trading plan from where to enter and where should put stop loss and target? Our whole emotional capacity is for that outcome that my loss could recover.

We always trade in stress. In stress, no performer can perform so how could you do Come first of all you have to reset means you have to understand this thing that what loss has happened earlier whichever happened.

I forget why because which money has gone and will not come back new money can earn can’t take back earlier loss, first reset. I reset my mind, I restarted and I am trading fresh For a fresh outcome. I am trading point number 1 before starting any forex trade- Reset your mind. If want to take a 2-day break, take a break of 2 days don’t see the chart take a break week read the book but reset yourself.

Point Number Two
Two Disciplines in overleveraging

Something that is an advantage becomes a disadvantage sometimes means trading with a forex trader. what is the advantage of heavy leverage that advantage becomes a disadvantage for the trader because the leverage is called a sword, which has two sides sharp.

If want to kill someone could kill but hurt yourself too. This means overleveraging is a big problem in our industry. You trade from the law you should take 0.1 lot size but have you seen by typing 1 order get to accept, Would press some buttons, meta trader we clicked, and over leverage happened in excess we get that much leverage gets in CMS prime.

What problem happens from overleverage there is, no problem it is good, If you earn money, you’ll earn more and it is a very good thing. If loss our stop loss is 25 PIPS so 25 PIPS means, you’ll lose 250 dollars our account was of 500 Mood gets destroyed now next trade. That point number one trading to recover 250 not doing for trading.

Not follow the trading process that I told in the first point Recover 250 from earlier trade Anish bro then we’ll follow the process this story has been going on for many days and makes me frustrated. As a trader leverage is power for you and sometimes it is also a curse it is boom and curse and understand use your less leverage.

Using less means keeping the lot size small and trading many times if want to increase. So increase in pull the market goes upward if did buy comes downward it takes support on any moving average going upward again. Increase our lot size in these things. But don’t use the overleverage. so disciplined and overleveraging.

Point Number Three
Over Trading Discipline

That thing that forex market is open 24 hours. Forex market is open 5 days whenever you wake up morning 11 or afternoon 3 or night 2. Trade is open can trade in the market. I have made this mistake you have also done it.

Now we have to stop your psychology should be that even if the market is open It doesn’t mean I always be in trade  We should not be in trade all the time, Overtrading could happen because the market is open.

Now understand, First judge when you trade gold so you know near the American market big movement comes. If you trade European market EURO/USD, you know movement comes in the afternoon after 1-2 p.m. You are getting entry in morning 11, take entry no problem.

If SL hits so don’t fight that should do entry again now I’ll do short  It’ll not move it’ll go sideways and will eat SL on both sides many times it works. Try to avoid over-trading and know the best time for your pairs. Know the best time for your asset and then trade the best time only. Be safe from your overtrading.

Point Number Four
Generalizing

We have a habit of calculating in the rupee that capital is 25,000 let’s trade of 7500, A Loss of 11-12000 happens now here what happens to 25 thousand, how much is it 300 dollar. If it is an account of 300 dollars it is an account of 300 dollars, If a stop loss happens. 

What is the problem if 40-50 of the loss happens? You start generalizing. When things are happening in dollars. So understand this thing and keep it in your mental calculation. I know who is trader only, he’ll know that generalizing 20-30 dollars, what is it 5 dollars? what is it 10 dollars? Many times trader thinks and get trapped in this problem, never generalize. 

Understand you are trading in dollars you need to understand how much is its value. Many times we think it is a small amount and should take the risk of 300 dollars again. No, we don’t have to put 300 dollars. If I say you put 25 thousand, again and again, will you put 25 thousand every day you will stop. There so understand the value of dollar v/s rupee.