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Forex Trading: Determination Of Victory Psychology Blocks

The main enemy is the Fear.

Universal fears are:

* Fear to be missed

* Fear of loss of the control.

If we reflect for an instant, we will see how the fear to be missing looks. Small children completely depend on their parents. Very quickly we understand that if they leave us, we will be incapable to take care of ourselves. The majority of us are not in a condition to resist to this fear when we get mature. As a result we automatically deal with it, trying to manage our environment – people, conditions and events which surround us.

This tendency can manage or not to be acceptable in life in other areas but as trade strategy in the markets it leads to ruin. The majority of us are incapable to influence the market even during the shortest moment of time, any more without speaking about the control over it.

According to Mark Douglass it is available four fears which are only a version of two universal fears:

1. Fear of losses

2. Fear to be wrong

3. Fear to drop the transaction

4. Fear not to take away profit.

They can be more familiar to the trader.

For an illustration of effect of fear we will give an example from life: One unfamiliar trader futures trading through one of the dealing centers, thinking why he is such disturbed, has told that held a short position on a strong bull market. While his eyes looked afar he spoke: I don’t know, why I only didn’t reduce a position earlier; why I haven’t made? It is effect of fear which forces out consciousness; it leads to short-sightedness; it will paralyze us and leads to failure to act.

Mirror display of fear is euphoria – feeling that we can’t make any error. Also as well as the fear, euphoria will lead finally to trading crash. As trade is game by probabilities, we will test times when we can’t commit any error. But these times will end sooner or later. The trader has got in euphoria trance, without understanding it and accepting too big risk which finally will lead to strong losses. If it is successful, losses won’t be catastrophic.

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