Forex Trading Psychology

simple definition of the major terms

• open-up your mind

• The secret to being a profitable trader is inside your heard and not inside the computer

• 90% the reason you are profitable is your mindset

• how the mind works during trading is key

• the biggest part of trading is done in our mind

• the market is always here

  
  

• take forex trade as a business not gambling

• kill the urgency to trade

• why you blow your account

• what your mind should focus on when trading

• we all need money and we needed it like yesterday

• forex trading is beyond your feeling

• the market is always here with better opportunity

• Why I wrote this course for you

• the idea of needing money is not just yours we all do

• Consider the money lost in trading the market, as your tuition fee

• focus on the now

  
  

  
  

• how to trade like a pro even if you started today

• how not to be frustrated while trading

• have a better trading experience 

• why you lost that trade

• how not to lose the next one

• its a part of the business

• don't take on position larger than your account

• know your risk tolerance,

• don't chase the market.

  
  

• learn what your trading goal should be

• you have your account to lose, don't lose it

• wishes don't move the market

• if you were right why did you lose

• there is no standard time to go from beginner to pro

• know you business risk

  
  

• Forex is a business

• do not be ignorant

• everyone lose

I know this section would have made you see from a different view, come let's work on the next sections

• Moving from a trading strategy is hard, but building a winning strategy is so simple

• my goal is not to change your strategy but to make your strategy a winning and profitable one

its easy to build your own trading strategy in compare to using someones strategy, because there is always something you don't see that the person can, better still copy and the improving on someones strategy is better

• where do you live?

• what's the time the market opens ?

• how does your own time zone and the market time relate?

• it doesn't matter what your time is, just wake up and put in the work

• mastering your craft is the best thing that can ever happen to you.

• see the market in different way and focus on just one pair

• know all the movement of your pair

• Using trend line take you a step close to profitability

• the trend line is not a solid brick wall but a wooden fence

• watch out for fake breakouts

• Forex trading is a business so you have to have a business plan

• getting your goals straight

• focusing on the target

• Do not get pressure into the market

• waiting pays off

• the market is not going anywhere

• you are not missing out on anything,

• the market will still be here with more better opportunities why rush to trade

• with or without you the market will still go in it's direction

• Psychology levels are typically round-off numbers that are easy to remember, traders react to them (buy or sell) because it gives a sense of good deal. People generally prefer simple and easy numbers like 10, 20, 30 than 9.476, 18.6139 etc.

• Few examples on how to use them

Chart examples on how to use psychology level.

Most time we count our money too quickly, and take our profit out of excitement when the market is just getting started, not knowing that this trade could have made us.

• Use psychology levels to take your profit

• Its better to wait than take too small

• Break-even first

• both positive and negative emotions alike lead to use cutting our loss late, sometimes but emotions.

• wishful thinking and prayers don't move the market

• the market is against you and you're against everyone

• Using psychology levels to set stop loss

• Never move your stop out or away from the market, only move your stop closer to the market

• The direction of the market is where your stop loss belong

• Always try to break-even and then let the market breath

Looking at the bigger picture is all about seeing the market from a much better perspective using triple screen strategy, before entering a trade you look at the chart from at least 2 time frame higher than the one you're taking your trade from, this will help you see the trend and the direction of the market better.

question

win rate and profitability which do you focus on?

most traders have 90% win rate but are not profitable, so focusing on win rate alone is not the best, instead focus on becoming profitable, and growing yourself, the more you grow the more profitable you become.

The market is a repetition what ever its doing now, it has done before a month , a year, even 5 -10 or more years ago, learn do back testing.

At the end of this section you should have learnt how to fine-tune your strategy and have a more profitable one cheers, see you in the next section.

in this section you'll learn how to survive, grow and make high profit cheers

The major step to growth is to first be able to survive for a longer time, you need to out live or be out lived

How to use baby pips to your advantage

position sizing and how it affects your account

Using percentage % in calculation of your trading account

you can't get a hundred losses in a roll, it will take a 100 negative trade to blow your account, even if you don't know how to trade.

The value of growth may not be noticed till you see it compounding daily weekly or even monthly, then you'll see that consistent 2% (two percent) profit in each trade matters more than just single 50%

Follow the few step in calculation of your compounding profit in baby pips while i show you in details in the next video using google spreadsheet

• got to the website babypips

• chose your preferred currency

• enter your capital

• chose your preferred percentage in this video I use 2%

• Use 1 as stop loss value, since we're not using it as our stop loss

• click on calculate

• then take your stop loss value in your currency

• add it to your initial capital

• repeat the procedure.

• How to use Google spreadsheet in calculating of compound profit using 2% or what your desired percentage

• The power of compound profit and how it affects your account from small to big

• Double your account in few days

• Formula is=B2*1.02

• Once you push enter it Alto computes and gives you the profit please capital

• Drag the edge to calculate for more days

• Can impute any figure or percentage in which you prefer answer is accurate

• No need to try to make 10%, 20% or even 50% at once, wait a use lesser percentage and let the capital compound over time.

• Its amazing to see what you'll be able to accomplish in a short time if you put your mind to it.

• Remember it's all in your head, don't get greedy.

• You can do

• Changing Account size, using same formula

• Same principle apply to all account no matter the size of your capital

• Illustration using 10,000$

• How to make easy 120% of your capital in a short time

• Don't let your emotions get to you

• 2% loss or 20% loss ?

• Side by side llustration on how long one can last in the market with 2% capital at risk or 20% capital at risk

• Risking 2% gives you more comfort in the market to trade the next market after lossing while 20% loss may give you heartache and cause you to be unsettling, revenge trade, or even take on too much lot size than you should

• 5 lossing trades will do not much damage to your account if you still to the 2% rule, you need more than 50 lossing trades in a roll to blow your account

• Watch your capital steadily grow with over 200% while you're enjoying the trades without pressure

• It's all in your head, that thought of wanting to make 20%-50% at a trade risking too much for so little.

I know making higher profit is tempting and you may want to over leverage,don't do it never over leverage follow my instructions or modify them, this is a disclaimer don't blow your account follow the step by step in the lectures cheers

• Risk 2% and nothing more

• Split your lot size

• Don't go all in at once (optional)

• Scale in on a pullback and retest

• How to had an extra lot to your initial lot and increase your profitablity without lossing your capital

• How to increase your profit risk

Learn the value of each pip and better set your stop loss and take Profit while you using your preferred lot size

Learn how to scale in multiple positions dividing your lot size and take advantage of pull backs in the market .

Learn how to scale in more positions as you grow in profit, breaking even while you increase in profit with more positions.

In this section you'll learn

• How to use a better risk to reward ratio

• Why beginners make profit

• The Gambler high

One of the factors to becoming a highly profitable Forex trader is the ability to be confident in your trade, and knowing the exact amount you can loss kills the phobia of trading

How to kill the phobia of lossing and focusing on what matter most, which is the trade before you right now, not the previous,nor the next.

How to use babypips.com in calculating your risk to reward ratio, knowing where exactly to put your stop and how much in percentage and dollar value it will cost you

• Calculating your risk to reward using the pip value

• How lot size and how much it means to your account

How to always know the amount you're risking and using a better risk to reward ratio

The best risk to reward ratio to use when entering a trade, be safe and profitable

In this video you'll learn

• Why most beginners make profit,

• Why they can't keep their profit

• How to avoid lossing your profit

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Don't get high on the marker, know when to hold, when to close , when to not trade and when to increase your profitablity