How to control my emotions in forex? It’s a very important question to ask yourself. Because you are a trader opening trades and looking for new opportunities, it is natural, while you are on your way to profit, to face some losing trades, and this is very normal, but have you asked yourself why you lose? In fact, many reasons make you lose in Forex, but we will talk about the most important and clear reasons for your loss, which are (your emotions). In this article, we will not
Talk about a strategy or an indicator. Still, what is more important than that is that the goal of this article is to reduce the percentage of feeling angry or sad. It also explains how to control my emotions in forex because forex is self-employment. You do not have a manager to tell you what to do; you are your own boss, and if I don’t know how to control my emotions and manage my life properly, then I will face great difficulty in reaching what I want, right?
9 Tips on How to control my emotions in forex
We do not mean the emotions between you and your wife or family but the effect of the market on your psychological state, your nerves, and your character in general. Self-employment is real capital, which is the person himself, not money. What is the value of money if you cannot manage your business well? Let’s agree that the most important thing that we will focus on is How to control my emotions in forex so that I can make correct decisions at the right time, and thus, the percentage of loss will decrease significantly.
1 – How to control my emotions in forex when trading?
emotions in trading
Let’s agree there is no ideal person in this life. You are a person who makes mistakes and rights, and you will not always become a person who does the right thing, so accept mistakes. We all make mistakes, right?
But what distinguishes us from other creatures is that we have a mind that knows the difference between right and wrong, and we correct mistakes as soon as possible so as not to be inflated.
In this case, we are not talking about a big mistake. Negative feelings often happen in life, and it is not a crime. Still, if we leave these feelings unresolved, we will fall into great losses that could have been avoided. and fully understand that How to control your emotions will take some time and learning from you, so be patient and learn from your mistakes, and do not rush the result and accept any mistake that may happen in your journey to reach the best.
<<< Top Reasons Traders Lose in Forex >>>
Accept the current situation.
Do not run away from the situation that you are in; face it with courage and strength, and try to find a solution to overcome it so that you can complete your work. In the worst case, it is preferable to leave trading so that you can regain your focus and calm again; trading with a bad emotional state does not come well
If a Trade is opened, take a rest and move away from the chart, and do not try to look at the profit or loss until after a certain time that you have set in advance because psychological tension may control you when watching the chart and you may make a decision that was not taken into account
Are you afraid of the market?
Sometimes, you might be afraid of the market and violent movements or unjustified movements. This is very normal, and the reason is a lack of experience or some events that occurred at some time, and you didn’t know about it, so the best solution in these times is to move away from the chart entirely, so moving away gives you a second chance. To think, and you can return while you are strong again, but if you were reckless and entered a trade while you were afraid and without studying or not based on reason and logic, there is a high chance you will lose your money.
The start of your day
The beginning of the day is the basis for the rest of the day, so start your day with a smile of optimism. It is possible to do some exercises to make you active and optimistic.
2 – How to control my emotions with Risk management
Feelings
Risk management is one of the most important reasons that make a trader out of his feelings and lose his nerve because if he is involved in a losing Trade, he sees a large part of his money as negative and increases with time, and he can not do anything and here comes the feeling of powerlessness because he did not follow Strict Risk management from the beginning, the best risk percentage you can take in a single trade ranges between 1% – 5% (it varies between each strategy)
Imagine with me if you committed to managing capital for a period of 2 months and saw your balance grow little by little based on the strategy you are working on and the profit percentage that you have set; then you will feel wonderful and better than the sadness that you would feel if you did not commit to managing capital
3 – How to control my emotions: Factors affecting negatively and positively
Many factors affect you as a trader or as a person who has a normal life. Anything you deal with can improve your condition and vice versa (work, home, trading, lack of money, ego after several successful trades… etc.). Some of these factors and causes might put you in a different mood, but their effect will be minimal if you realize these factors and know how to control your emotions while trading.
Example (1) How to control my emotions while angry?
Angry man
After you finished your work, you entered your apartment and tried to relax and rest. Then, your children suddenly screamed while they were playing. It annoyed you, and you could not sleep again, so you screamed at them in anger and decided to open the chart and open a new trade.
What might happen in this situation? This is just an assumption, but there is a high probability that This decision was wrong because you were angry and trading at an inappropriate time for you. You will not be able to focus on your work and make a decision based on reason and logic. In this case, your angry and sad feelings towards your children or yourself have been emptied into your Trade, which will likely make you lose all of your balance.
What is the solution and How to control my emotions while angry? It is always preferable to stop Trading in these cases and try to find a solution to the current problem or empty your efforts into exercises, as we mentioned before. The most important thing is to accept that there are things in life that bother and joy you, so accept bad things just as you accept good things to be able to deal with them properly. (It is highly recommended that you seek the help of a friend or a Forex expert to support you, or even a psychologist)
Example (2) (opposite to the first example)
After you finished your work and went home, and when the children shouted, you tried to sit with them, smiling and playing with them a little. Then you went to your bed, so you woke up with peace of mind and opened the chart. After careful analysis of the market, you did not find a suitable opportunity and knew that you could not enter because there is no chance to enter the market right now. Then, you closed the chart again.
What happened in this example? You did not get angry; put 1000 lines under this word. Anger alters The day and your personality completely and makes you make decisions that you may regret later. When you heard your children playing, you did not give in to your anger and decided to defeat it by doing the opposite of the natural act and went to play with them until you calmed down and went back to complete your sleep. After clearing your mind, you decided to start opening a new trade and did not see a suitable opportunity, so you closed the chart again, and this is the best solution in this case.
Is the solution to be positive?
The answer is 50%, yes, because if you are very positive, you will make optimistic decisions for more than necessary, and this may be dangerous sometimes because, as we agreed, the decision is taken based on reason and logic, and feelings never enter into any decision you take, so the best solution is to be very natural In your work time and leave any thoughts not related to trading
4 – What will happen if I don’t know How to control my emotions?
accident
Many things can happen. Most importantly, if you are in front of a platform, you will lose your money if you decide to trade (just a possibility), not to mention that you are likely to pour your anger and negative feelings on the people of the house and this is very wrong, so you must differentiate between work and personal life in order not to happen Such things.
What would happen if I knew How to control my emotions?
First, you will love this feeling because you are in control; nothing leads you, and you can continue your day very naturally. After repeating this feeling, you will feel happy with the time, and many things around you will improve because your style will be somewhat different, affecting your trades, of course, as we agreed. The psychological state of the trader reflects everything in your day, and it’s very important.
What would happen When emotions are out of control?
You will succumb to your anger, sadness, greed .. Etc. The bad feelings that dominate us are not supposed to be only anger. Anger is the worst of them because it blinds you from the truth and reality. In this case of surrender, you will not be able to make the appropriate decision for the situation in which you are, and your mental and physical condition will also worsen; you may suffer diseases and pain; of course, we don’t need that to happen.
5 – How to control my emotions through strategy
trading strategy 2
You may also make mistakes that cause you to lose during trading, which may worsen your condition. One such mistake is a failure to commit to the strategy.
We also agreed that any loss that may occur may make you moody, and our goal is to reduce the occurrence of losses. Commitment in Forex is the secret of success. To commit to the strategy, you must first train it for a period of not less than 3 months to adapt to it psychologically and learn the terms of entry and exit And the appropriate Lot size… Etc. The abundance of knowledge does not harm it, but the rush to trade may make you lose a lot.
6 – How to control my emotions if I Stop trading
After several successful or losing trades, and you have achieved the desired goal during the day, in this case, you are supposed to stop trading, but most traders are eager for more profits. Why? Because it is human nature. If you get something you love, you will ask for more and more. Do not be addicted to forex. The chart is there, and the pairs are there, and they will not disappear. Be patient, stop trading for some time until the next day, and give your body some rest; this is your right.
7 – You are not a super trader
I do not mean by this title to disappoint you but to make you aware of the truth only. Do not try to be an ideal trader with many indicators, analyze a lot of pairs, and hear many opinions, as all these factors will distract your mind and may affect the treatment of people around you. The advantage of Forex is that it is simple, so treat it simply. Just follow one or two methods at most.
Do not try to complicate things on yourself, and be sure that you are not always right. Some traders say, “I analyzed well and read all the news, and all analysts say the same opinion, so this trade will succeed.” (it does not have to be these factors in the success of the trade– the market does what it wants, so be always ready for anything that happens)
Such as (stop loss – take profit in the right place -Trailing stop- Risk management)
8 – Things that may frustrate you and keep you from trading
There are many things that may frustrate you and take you away from trading because of despair and not seeing your future in the trading world. This is sure to happen because we are human, and we are affected by all the factors surrounding us.
Previous experience
For example, you opened 5 deals and lost all of them in one day (and this may happen). Your mind has visualized that the next trade will be like the previous one, so what is the difference? Your mind begins to sort the poison of despair and frustration on you to stop trading based on 5 trades that you have lost, and it is certain that you were unaware of the basic factors that make you open a new position. You were not committed to the strategy that you had previously studied.
- The previous experience may be a project that you did, so it failed, so you expect all the projects that you undertake will fail and will not succeed in Forex as well!
- All of these are excuses to relax, not go to work, and find out the reason for your failure, so stay knowledgeable and ambitious for the better. You will overcome all these difficulties.
Stop loss
I consider stop loss that you pay a small amount of money to be able to maintain your focus and enter into another trade in order not to be afraid of trading and seeing a huge loss in front of your eyes, and I do not think that someone wants to see your facial expressions at this moment.
Stop-loss orders are necessary for any trader to give himself a second chance to open new trades.
Criticize those around you
Of course, when you start in a career that not many people know about, they will criticize you, and they will likely make fun of you because you will put your money into a career that has high risks and is likely to be unknown to them. Do not listen to the opinions of those around you, as they do not have enough experience to say Their opinion on Forex, and if you want to hear an opinion, then hear the opinion of experts on Forex because they have gone through many challenges and difficulties that you have faced and you will face in the future. They have a future vision of what may happen to you.
9 – How to control my emotions with suitable Capital
suitable capital
Would you be upset if you lost your account balance?
Of course, I do not mean to lose your money, but what I meant is that any money that you may put into forex must be a surplus and not a personal need such as house or university expenses, bills … etc. So your focus is towards the money if it is a completely different surplus compared to whether you need this Money, and that will help you to know how to control your emotions and feelings very much.
If you need this money for the house, for example, try to differentiate the extra money as much as possible from personal needs because you will make wrong decisions that may cause you to lose your money because of these needs. So I recommend considering that this money does not exist and you are trading on numbers.
Is your capital large?
For example, if someone deposits $100, will his psychology during trading be the same as that of someone who deposits $1000?
Of course not. The greater the deposit amount, the better the trader’s psyche, and managing capital for the account will become easier, unlike the cent account. If you open a cent account, you can open large lot sizes with a small amount, but the profit will also be small.
In Summary for how to control my emotions in Forex
We are human beings with feelings that sometimes dominate us. Do not be sad or flog yourself because you made a mistake; your emotions will control you. Be patient and learn from your mistakes. Remember the goal you seek because it will motivate you in your journey in Forex.
and If bad feelings dominate, you try as much as possible to ignore anyone Around you and ignore trading as well and try to get out of this bad state that you are in so that you can complete your work and be fully aware of the field in which you work so that you do not fall into many mistakes that may affect you as well and do not rush to start in Forex if not Be prepared. Take your time and think carefully before you start, and always ask yourself: am I ready, or do I need more training? Is my capital sufficient to start?
