Trading is less a work, than a psychology, on which your success or on the contrary, your failure at Forex market depends. If you decided to move to systematical trading, it does not unload emotional pressure at taking a trading decision entirely.
Frequently, Forex tradersincline to the opinion that only complete absence of emotions can help during trading. Though fear, suspense, greed, hope, belief, regret and happiness accompany a trading process inevitably. Suppressing emotions at the moment of feelings overwhelming you, means disregarding the sixth sense, intuition, and finally, insight.
It is known that emotions are also transmitting a flow of information to us. We are guided by this information, act under impressions from it. But this is given to us in order to control our emotions and to change one sentiment for another.
There are a number of ways to control emotions
Firstly, it is possible to change your emotions by switching to another object of your concentration. As a rule, this method is very effective. The thing which draws our careful attention becomes real for us. You can consider suffering losses, or vice versa render an opportunity of gaining profit.
Secondly, having changed your convictions and believes you can alter your emotions. Every belief that we attain during our life time are a sort of a filter for us, influencing all the information perceived. All views accumulated during our life affect the interpretations which we are admitting into our consciousness.
And finally, the third way to change our emotions is by modifying physiology. A change of breathing, mimics, body position, the tone and tempo of our voice, all this has a direct influence on the emotive part of not only a Forex trader, but of any person.
The concentration of attention is one of the most significant constituents of our emotional condition. Because the thing you are focused on in the process of Forex tradingbecomes not only the object of the happening reality but also the accepting of factual reality. All actions influence on your interpretation of events and consequently affect your emotions. All this manipulates your behavior, and decisions accept an emotional connotation. In this case it is needed to define the priorities: what are you waiting for? Are you entertaining a possibility of losses? Or are you expecting gaining?
Those who see only losses are likely to hesitate for too long entering the market or can even skip a deal. But once having decided to enter the market, they are quickly gaining profit. Trading is an attempt to balance the opposites. A trader should focus on profit and loss and try to balance them. A trader should concentrate on the probability of his methods, and on the information provided by the market, as it is the only accurate and reliable one.
It is proved, that our body manages our emotions, and emotions affect the thoughts. The easiest and the most correct way to change the emotional condition is to change your physiology - tempo and depth of your breath, voice or even your pose. Pay attention to your position, the way you sit, breathe, whether the muscles of your face, shoulders and of all body are tense. If you feel discomfort, you should only sit cozily.
Absolutely simple physiological manipulation can serve an effective instrument to control your feelings.
Control your emotions, and this will definitely make a more successful trader out of you!
We often hear market analysts or experienced traders about an equity price nearing a certain support or resistance level, each of which is important because it represents a point at which a major price movement is expected to occur. But how do these analysts and professional traders come up with these so-called levels?
One of the most common method is using Pivot Points and here we take a look at how to calculate and interpret these technical tools. Pivot Points are very useful tools that use the previous bars' highs, lows and closings to project support and resistance levels for future bars. Daily pivot points are useful for swing trading. Longer term pivot points provide an idea of where key support and resistance levels should be. Place the pivot points on your charts and see how traders appear to give pivot point levels a lot of respect.