Forex Trading Library

Keep control of your emotions

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Learning to keep control of your emotions when trading is an essential part of becoming a seasoned forex trader. Basically, traders are humans who have emotions that can cause trading errors that interfere with the successful application of a forex trading plan and ultimately reduce profitability. For example, the fear of taking a loss can motivate a trader to move their stop loss orders away from the market. In addition, greed for making more money than would normally satisfy a trade can result in the trader moving their take profit orders away from the market, with the possible result that they will not be executed. Furthermore, hope can incapacitate a trader from taking a timely loss if they are motivated by the hope that the position will eventually return to profitability, which can result in a worse loss than was necessary. If you find you have difficulty controlling your emotions, consider automating your trade plan.

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