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Psychology Trading

Written by Martin Grippen. Visit also my Google Plus site ,Facebook site. and my blog about Forex.

Traders in the Forex market have to accept the market condition; they cannot force the market in a particular direction as the market is determined by demand and supply. A plan or a strategy is needed to have success. Even with a plan the traders cannot be sure they will succeed to earn profits. They have to follow the plan and trust the plan is the right plan. If they have doubts they will miss the opportunities in the market.

An example; how the trader doubts his rules and misses the trading opportunities in the market

An example could be a strategy including the Bollinger bands as the primary indicator and the stochastic as the secondary indicator. The strategy is to enter a trade if the price line crosses the lower standard deviation, the currency pair is oversold and the candlesticks turn green. If the trader doubts the rules in the strategy he will wait and watch the price development instead of entering the trade.

The example illustrates how the trader doubts his rules and misses the trading opportunities in the market. The trader has to change his believe structure and see himself as a good trader with self-discipline to enter a trade when the rules for entering a trade is present.

Visualization technique; convince the trader to enter the trade when the rules for entering a trade are present

Through visualization is it possible to change the trader believes structure and convinces him that he is a good trader with self-discipline to enter a trade when the rules for entering a trade is present. The purpose is to change his self-image; a picture all human beings have of themselves in their mind. It is a picture that controls our behavior in life matters and it is built on experiences and beliefs in life.

The visualization technique is to see the trade through a theater play in your mind; from the entry point where the trader enters the trade to the exit point where the trader withdraw from the trade.  The picture of the play has to be as detailed as possible as it is easier to reach a goal if the picture of the goal is clear.

Extra info about visualization

I have written some articles about visualization in a bit deeper detail than this article. The articles are “How Visualization Techniques Can Improve Skills To Enter A Trade” is the visualization technique and “How to improve your Forex trading with visualization techniques”.

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Disclaimer
Trading CFDS in Forex, stocks, indices, ETFS and commodities has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to your investment in the CFDS in Forex, stocks, indices, ETFS and commodities market. Don't trade with money you can't afford to lose. Your success depends on your background, dedication, desire and motivation. Content on this website is for illustrative purposes only. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.



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