Computer Can Control Some of Your Emotions

Emotions are the most important problems that all traders, especially new traders have. Controlling of the emotions is the biggest stage in becoming a profitable and successfully forex trader and it is almost the main stage that most traders stop working and give up.

Sometimes it is hard to understand what decision and action is taken based on the emotions. You really have to monitor and analyze your behavior to understand if you decide and act based on your emotions or you trade based on the techniques, signals and trade setups. We are different from each other and our emotions are also different, but fear and greed are the main emotions that affect our trading business. I believe greed is more common and stronger than fear. Of course sometimes fear takes the control and paralyzes you, especially when you trade with the money that you can not afford to lose. But greed is responsible for 99% of the disappointments, failures and margin calls. Maybe you are not familiar with your greed yet or you think that you are not greedy. Most of us are not greedy at all, but it is a different story when it comes to forex trading. Greed starts working as soon as you start learning and trading forex, because everybody likes to work less and make more.

Recently, one of Forexoma Live Market Analysis subscribers emailed me and complained about a bad habit she had in her forex trading. She said she doesn’t take any profit while her position is about 50 pips in profit and she let the market turns around and takes all the profit off her hands and finally she gets out with 15 pips profit. A 50 pips position changes to 15 pips while she has not taken any profit. She wanted to know about the reason and also the solution. But she did not know that her problem was because of her greed.

When your position is 50 pips in profit and you don’t take any profit, it means you are hopeful that it keeps on moving to your favorite direction and you are dreaming for getting out with 100 or 150 pips profit. You want to have the maximum amount of profit through a position and this is nothing but greed.

When you see it is too hard to control these kinds of emotions, for example you repeat the same mistake over and over and you don’t take any profit from a strong position which is +50 pips in profit, you have to let the computer do it for you. Set a target order and let the computer close your position or at least a part of your position. Then move the stop loss to breakeven and wait for more profit. If the market turn around and hits your stop loss, you will be out at breakeven while you have already made some profit. This is better than making nothing or losing.

If you have the same problem, take the advantage of the facilities that your computer or your broker server has. Let the computer handle some part of the work. Use the features like take profit orders and trailing stop. You will lose less and make more.

Finally, when your positions was closed by a TP order or trailing stop loss and then you saw that market kept on moving to your favorite direction, don’t blame yourself for having the TP order or the trailing stop loss. You never know what the market will do. Your profitable trade could be changed to a loss if you had not use a TP order. We should always see the other side of the coin too.

Forexoma Live Market Analysis subscribers also learn to control their emotions as the most important part of trading. They learn how to be disciplined and wait for the proper and perfect trade setups.