Pellicano Articles
Pride became the reason of crash of many traders. Pride is very strong emotion. We feel pride after essential achievements, and especially we are proud, when these successes have raised our social status. Trading is a difficult employment. Not everybody manages to subdue it; therefore there are natural sensations of satisfaction and pride at successes. But pride can be too high. When people are so proud that feel infallible, they don’t manage to save clearness of thinking.
Pride is most appreciable at competition. Some people try to show their skills. They subconsciously feel the imperfection and try to prove to another the solvency. When such people achieve essential successes, they have hot desire to brag of the achievements to feel above others. Reception of sense of superiority stimulates them to brag of the achievements and to suppress others. It is useful to be proud a little sometimes, but too much pride leads to stagnancy. The person can objectively be afraid to look at the lacks. Actually, too proud person is not in condition to recognize possibility of errors.
Excessive pride has social consequences also. People don’t like too proud person. They mischievously wait, when such person will fail. These psychological processes play essential role in stress and indecision creation. Excessively proud trader will feel strong social pressure, necessity to continue to do the big financial profit to save the status. Additional pressure will exhaust precious mental resources and will call the unpleasant emotions, disturbing to rational decision-making.
The winning trader won’t be too proud. He is modest and doesn’t try to compete to others. The winning trader develops internal standards of self-estimation for himself. The winning trader competes to himself. He looks at the last achievements and tries to achieve bigger success. He doesn’t compare himself to others. He doesn’t take pride or shame, because of how much well he works in comparison with other traders. He concentrates only on what he does. The concentration on others removes traders from trading – when the trader distracts, he will do errors and this will lead to serious financial consequences. Remaining modest, the trader remains accurate, concentrated and purposeful. Such is thinking of success.
Interesting supervision concerns how the weariness influences the perception of the award. When participants got tired as a result of making of some tasks, which demanded self-checking, it was difficultly to estimate stimulus correctly. They underestimated the award and consequently stimulus less inspired them.
These researches show, how the weariness and motives influence ability to save self-checking. When the trader gets tired after number of transactions, it will be difficult to him to support discipline. Besides, at weariness decreases value of the potential award, which can be reached if to save self-control. Thus, in your interests is to save up mental energy as much as it is possible. If you have a lot of energy, you can estimate potential profit better, which you will receive, supporting discipline. And if in activity focus there is potential profit, it can operate, as powerful stimulus. You will support discipline, even when you start to get tired a little. It is not necessary to underestimate influence of psychological processes, which can help you to save discipline. Be convinced that you had a good rest and are full of energy before the beginning of trading day. The more energy you will have, it will be easier to support the self-checking, necessary to follow the plan of trade and consistently to get profit.
It is vital to gather as much info about currency exchange market as possible. Because this info will help you not to lose much money on Forex trading or Forex investment.
Surely not a single piece of knowledge can be rock solid guarantee against losses, especially on Forex, but sometimes just one Forex books can save you much money.
Tags: currency market, currency trading, forex, Forex Market
Posted in Uncategorized · July 26th, 2010 · Comments (0)
What for it is necessary to know Forex history? The answer is just to understand the essence of this currency market, sense of its appearance.
Forex is thirty years old. Its appearance has been caused by the world crisis of the gold standard, a binding to the gold reserves of the national currencies. Today the course of all currencies is established by the market, instead of the state. These are qualitatively various currency systems, each of them has its own history.
People trade in currency from time immemorial. The modern currency market has a background. For the first time the international banks have arisen in Europe in the Middle Ages. The quantity of the concluded currency transactions gradually grew and as a result the currency market has developed many centuries ago.
Exchange rates have been rigidly adhered to gold for a long time. In the XX-th century transition to essentially new currency system was made. In 1970th of the last century the currency market Forex was formed.
The modern currency market is similar to sports or theatre. There are rules of mutual relations and characters, the hall of glory and the work schedule. The currency market has the features and the character.
Participants of this market are first of all the serious commercial banks carrying out the main operations under the instructions of importers and exporters, investment institutes, pension and insurance funds and private investors. Besides, these banks carry out operations and in own interests for the account of their own means, and at a number of banks even the lion’s share of the profit is formed exclusively thanks to speculative operations with currency.
Much success, as well as money, never happens. However, the way to it is uneasy. The experience and theoretical knowledge are powerless in this case. “The naked” theory and small or negative experience are bad friends.
In many respects the success in the market is defined by the execution of some certain rules, principles of successful trade, ability to supervise the capital, emotions and professional behavior (risks). For the professional trader the success is as inconceivable without skill of “reading” the market, behavior of other players in the market, as book reading. This ability something is similar to psychoanalysis.
Forex goals as a place of personal financial, intellectual and mental abilities application, consists of not only trying to catch the bluebird of happiness. Sometimes it is possible to someone, but only for a short while. The basic advantage of the Forex currency market is that it is possible to achieve success by means of the force of the intelligence.
You can be the expert in the technical and fundamental analysis, trade planes, perfectly use special computer programs, and also to be seven spans in a forehead. However, without having internal confidence, abilities to own the emotions when business concerns great sums, it will be difficult to you to achieve success on Forex.
As in every other niche of life foreign exchange market needs some education.
Of course, one can start forex investment and be quite successful about it. However sooner or later the losses will come. This is when you might think “Why did I fail to start with a good forex trading education?”
That does not mean that after reading even the best materials you will start closing trading positions with huge income, but this info will save you from many traps. And even if you decide to get the help of a managed forex trading service, still you will be able to make a much wiser decision.
And a final piece of advice – today the online technologies give you a really unique chance to choose exactly what you require at the best terms which are available on the market. Strange, but most of the people don’t use this opportunity. In real practice it means that you should use all the tools of today to get the info that you need.
Search Google and other search engines. Visit social networks and check the accounts that are relevant to your topic. Go to the niche forums and join the discussion. All this will help you to create a true vision of this market. Thus, giving you a real chance to make a smart and nicely balanced decision.
P.S. And also sign up to the RSS feed on this blog, because we will everything possible to keep this blog tuned up to the day with new publications about Forex currency trading.
Tags: currency trading, forex, forex management
Posted in Uncategorized · July 26th, 2010 · Comments (0)