The Psychology of Speculation in the Forex Market

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Trading psychology is a necessity to long-term trading success. Find out how to develop a positive trading mindset to speculate on forex like a professional.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.What happens when it all goes wrong?Forex speculation is the name of the game in trading. Every trader, at some point or another, has to click ‘buy’ or ‘sell’ and commit to a position based on their analysis even though there is no guarantee of success.

Before placing a trade, know what level of risk you are prepared to take on and ensure that the risk to reward ratio is at least 1:1.Since you will inevitably be taking losses in this game of forex speculation, it’s important to deny those losses from altering your frame of mind. Most human beings will be greedy when they have a losing position; willing to hold on if only price can come back to their entry level. And when in a winning position, most human beings will begin to be fearful.

 

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