XMTrading: Will the popular Forex trading make you crazy? The reason and psychology behind it

XMTrading

Popular FX trading and investment are easy to start, but the charts move based on people’s emotions. It is common for the price to move completely differently than expected when you enter the market to make a profit. This can leave people filled with a sense of despair. “I’m going crazy because I’m losing money on FX.”

Is FX going crazy?

Making money in forex is never easy. There is no guarantee that the chart will move according to logic, and basically it will move erratically according to people’s emotions. Therefore, no matter how much a trader continues to win, there will always be times when he loses, and times when he loses momentum.

However, if you are a beginner, you may not be accustomed to the trading itself yet, so there are quite a lot of people who lose first and go insane. If you lose, you will have to think about various things by reviewing the chart and what kind of entry pattern you have, and in the end you will not know what is what and you will go crazy. The psychology that tends to be a beginner is as follows.

  • No matter which chart time frame you look at, you don’t know the trend of rising or falling, and it’s scary
  • Entry without knowing the points and timing of buying and selling
  • Even if you enter at the timing when momentum comes out, it will go backwards after that

Forex loses if it moves with emotions

The important thing here is that FX often loses in most cases when it moves with emotions. And after losing, the blood rushes to my head again, and I think I will enter with emotions, but I will lose again. Look at your face in the mirror. Stay away from FX when your face is bright red. Forex is a system that always loses when it gets emotional. However, it is a normal human reaction to be happy when you win and angry when you lose.

90% of FX lose

The important thing here is that 90% of FX trades are losses. The majority cannot win. As mentioned above, the characteristics of people who cannot win are those who are driven by emotions. In other words, people who win are not driven by emotions. Only those who can trade calmly, whether they win or lose, will survive on the other hand. By steadily earning small profits at first, you can truly accumulate maximum profits. If you can earn income from a side job, you will be able to find and grasp trends and will not get frustrated. It is important to use a broker and win below.

3 years to win in forex

It is not a level where you can beat Forex just by having a positive profit for one month. In order to win all the time in FX, you have to practice for two or three years. In general, it is said that it takes three years to be able to win consistently in Forex. Three years is a long time to control emotions, establish techniques, and learn chart patterns.

Characteristics of people who are suitable for FX

The characteristics of people suited to FX are as follows. If you go negative, you could end up in debt or bankruptcy, which is hell. Even many people who are very wealthy wish they had never done it. Some people have finished, so I will introduce some tips from their experiences to avoid big losses. It is more important to increase the chances of not incurring losses than to make a profit by using high leverage with your funds. In order to avoid failure as a result, it is important to trade more cautiously than you might think.

not influenced by emotions

People who can think logically and objectively are very suitable. People who can think rationally and objectively can trade without being swayed by their own emotions or preconceptions. The opposite of this is people who get emotional. When they get angry, they are no longer able to even analyze. If you are worried even with a small amount of money, keep up with the latest market conditions on the news or X (twitter). The key to success is to practice without mental stress. Take advantage of the opportunity to make a living from day trading.

keep learning

Forex is a constantly changing market. As a result, what worked yesterday may no longer work today. In order to keep winning stably in Forex, it is necessary to keep learning. To understand the market, society, politics, and international affairs are greatly influenced, so it is suitable for those who like current affairs.

someone who has a method

In order to win in FX, one method is thoroughly investigated and the method is the main battle. If you make 1000 or 2000 entries in one battle, you will know where to take profits and where to cut losses. You can see a clear line, so you won’t be shaken by emotions.

people interested in investing

FX is a form of investment and can lead to future asset formation, but if you are not interested in it, it is difficult to win. You will eventually get bored and lose interest. Before you start studying, it is important to avoid big losses. By doing it every day, you will gain confidence and be able to calmly make settlement decisions, reduce risk, and no longer gamble on the market. Now, knowledge and strategy are needed to win in the long term in a fluctuating market. From now on, you need to make rules and trade while understanding them.

Demo trading is recommended for Forex beginners

Demo trading is recommended for forex beginners. Demo trading allows you to practice trading without losing your real money. To do so, let’s start by opening an account. You can practice demo trading as many times as you like, so you can fight with real money after getting used to it.

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